Your tenant emails on a Sunday night: “I got a job in Ottawa. Can my friend take over the apartment?” It sounds simple. But how you answer that message, and how fast, can decide who lives in your property for years to come.
Lease assignment in Ontario and subletting look similar on the surface, yet the law treats them very differently. Each one comes with its own consent rules, deadlines, and risks for you as the owner.
In this guide, we break down the difference, explain your rights under Ontario’s Residential Tenancies Act, 2006 (RTA), and walk through how we handle these requests for landlords across Hamilton, Niagara, and Halton. This article is general information, not legal advice.
Lease Assignment vs Subletting: The Core Difference
The simplest way to tell them apart is to ask one question: is the original tenant coming back?
- Assignment: The original tenant leaves for good. A new person steps into the existing lease, on the same terms and at the same rent.
- Sublet: The original tenant leaves temporarily and plans to return. A subtenant lives there for a set period, and the original tenant stays on the hook.
| Assignment | Sublet | |
|---|---|---|
| Original tenant returns? | No | Yes, by a fixed end date |
| Who is liable to you? | The new tenant (assignee) going forward | The original tenant, throughout |
| Can you refuse outright? | Yes, in general | No, only for a specific, reasonable reason |
| Rent | Same lease rent continues | Subtenant can’t be charged more than the lawful rent |
| Your fees | Reasonable out-of-pocket expenses only | Reasonable out-of-pocket expenses only |
Getting this distinction right matters because it shapes every decision that follows.
How Lease Assignment Works in Ontario
Under section 95 of the RTA, a tenant can only assign with your consent. When a tenant asks, you have three options:
- Consent to the assignment.
- Refuse the assignment in general. You can say no to assigning the unit at all.
- Consent in principle, then review the specific person proposed. At this stage, you can’t refuse a proposed assignee arbitrarily or unreasonably.
The Trade-Off Most Landlords Miss
Saying “no” in general has a consequence. If you refuse outright, or you don’t respond within 7 days of the tenant’s request, the tenant can give notice to end the tenancy. They must give that notice within 30 days of their original request.
In practice, that means a blanket refusal can trigger a vacancy you didn’t plan for. For a fixed-term lease with months remaining, that’s a real cost.
So the strategic question becomes: would you rather approve a well-screened replacement, or take the unit back and re-lease it at today’s market rent? The right answer depends on the property, the current rent, and the local market. That’s exactly the type of decision we help owners weigh.
What Happens After an Assignment
Once approved, the assignee takes over the lease as is. The original tenant is generally released from obligations arising after the assignment, but remains responsible for anything that happened before it (unpaid rent or damage, for example).
How Subletting Works in Ontario
Subletting falls under section 97 of the RTA. A tenant needs your consent here too, but the rules tilt differently:
- The tenant must propose a specific subtenant. There’s no general “can I sublet?” approval.
- You can’t arbitrarily or unreasonably withhold consent.
- The original tenant stays fully responsible for rent and damage during the sublet.
- The tenant can’t charge the subtenant more than the rent you lawfully charge.
- The sublet needs a fixed end date, and the original tenant must intend to move back.
What Counts as a Reasonable Refusal?
Reasonable grounds usually relate to the applicant’s suitability, such as:
- Failed credit or reference checks
- Unverifiable income or employment
- A poor rental history with past landlords
- Occupancy that would exceed safe limits for the unit
On the other hand, you can never refuse based on grounds protected by the Ontario Human Rights Code, such as race, family status, disability, or receipt of public assistance. If a tenant believes you refused unreasonably, they can file a Form A2 with the Landlord and Tenant Board (LTB).
What to Do When Someone Moves In Without Consent
This is where landlords lose the most ground, often without realizing it.
If the original tenant has moved out and someone else is living in the unit without your approval, that person is an unauthorized occupant. You can apply to the LTB on Form A2 to end the original tenancy and evict the occupant.
The critical deadline: you must file no later than 60 days after you discover the unauthorized occupant. Miss that window, and the occupant can effectively become your tenant through a deemed assignment, at the existing rent.
A similar 60-day clock applies when a subtenant stays past the end of an approved sublet.
Also keep in mind that since July 1, 2026, Bill 60 cut the deadline to request a review of an LTB order from 30 days to 15. If a hearing doesn’t go your way, you have far less time to respond.
A Practical Response Plan for Landlords
Here’s the process we follow whenever a tenant raises an assignment or sublet:
- Get the request in writing. Confirm whether the tenant is leaving permanently or temporarily.
- Reply within 7 days. Even a holding response protects you from silence being treated as a refusal.
- Screen the replacement like any new applicant. Apply the same written criteria every time for consistency and fairness.
- Document everything. Keep records of the request, your decision, and your reasons.
- Charge only reasonable expenses. Credit check costs, for example, but no “approval fee.”
- Paper it properly. Use a written assignment or sublet agreement that references the existing lease.
- Check condo rules. Many condo declarations restrict short-term or transient occupancy.
- Inspect periodically. Regular visits help you spot an unauthorized occupant early, well inside the 60-day window.
How Golfi Property Management Handles an Assignment Request
Here’s an illustrative scenario. A tenant in a Hamilton two-bedroom has eight months left on a fixed-term lease and asks to assign it to a coworker.
Within days, our team acknowledges the request in writing and reviews the current lease rent against today’s market. Next, we run the proposed assignee through the same credit, employment, income, and rental history checks we use for every new applicant.
If the applicant qualifies, we prepare the paperwork, document the hand-off with a move-out and move-in inspection, and update the owner’s records. The owner gets a clear summary and makes the final call, without having to chase paperwork or tenant messages.
That’s what full-service property management looks like in practice: a consistent process, firm deadlines, and decisions grounded in local market knowledge.
Frequently Asked Questions
Can a landlord refuse a lease assignment in Ontario?
Yes. A landlord can refuse an assignment in general. However, doing so (or failing to respond within 7 days) allows the tenant to give notice and end the tenancy early.
If you consent in principle, you can only refuse a specific proposed assignee for reasonable reasons, such as failed screening.
Can a landlord refuse a sublet in Ontario?
Only for a reasonable reason related to the proposed subtenant. You can’t refuse a sublet outright or arbitrarily.
If the tenant believes your refusal was unreasonable, they can apply to the LTB on Form A2.
Can I charge a fee to approve an assignment or sublet?
You can only charge reasonable out-of-pocket expenses you actually incurred in giving consent, such as a credit check. A flat “transfer fee” or profit-based charge isn’t allowed.
Who pays the rent during a sublet?
The original tenant remains responsible to you for rent and any damage during the sublet. If the subtenant stops paying, you can look to the original tenant.
What if I accept rent from someone who isn’t on the lease?
Proceed carefully. Treating an unauthorized occupant like a tenant, or simply letting the 60-day filing window pass, can lead to that person being treated as your tenant. If someone unexpected is living in your unit, get advice and act quickly.
Conclusion: Respond Strategically, Not Reactively
Handling a lease assignment in Ontario, or a sublet request, comes down to three things: knowing which one you’re dealing with, responding within the legal timelines, and screening every replacement with the same care as a new tenant.
The cost of getting it wrong is real. A missed 7-day reply can trigger an unplanned vacancy, and a missed 60-day window can leave you with a tenant you never approved.
At Golfi Property Management, we handle these requests every day for owners across Hamilton, Niagara, and Halton. Backed by more than 20 years of industry experience and the legacy of The Golfi Team, we bring structured screening, clear owner reporting, and 24/7 emergency response to every property we manage.
Want a second opinion on a tenant request, or ready to hand off the day-to-day?’
Request a free consultation with our team, learn more about Golfi Property Management, or browse available rentals to see the properties we manage. Owners in the city can also explore our Hamilton property management services.