Many tenants don't realize they have a legal right to sublet in most Canadian provinces — landlords cannot simply refuse without a valid reason. Here's what the law actually says and how to sublet correctly.
What Subletting Means Legally
Subletting means you — the original tenant — rent your unit to a subtenant while you remain on the lease. You are still the tenant of record and remain fully responsible to the landlord: if the subtenant damages the unit or doesn't pay rent, you are liable. This is distinct from assignment, where you transfer your entire lease to a new tenant and exit the agreement. In Ontario, landlords cannot unreasonably withhold consent to subletting or assignment.
Rules by Province
Ontario: you have a legal right to sublet with the landlord's consent. The landlord may refuse only for reasonable cause (valid concerns about the subtenant). If the landlord refuses without cause, you can apply to the LTB. BC: you may sublet with the landlord's written consent; the landlord cannot arbitrarily refuse a suitable candidate. Alberta: requires landlord consent, but tenant protections on refusal are weaker — review your lease carefully and consult the RTDRS if refused.
How to Sublet Properly
Write a formal written request to your landlord describing who the subtenant is, the proposed dates, and confirming you remain responsible for the lease. Screen the subtenant as carefully as a landlord would: credit check, employment verification, and references. Sign a written sublease agreement with the subtenant — provincial LTB websites offer template sublease agreements. Collect first and last month's rent from the subtenant and hold it — do not spend it, as it may need to be returned.
Airbnb and Short-Term Rentals
Most standard leases prohibit short-term rental use including Airbnb and VRBO. Even where not explicitly prohibited by the lease, many condo corporations ban short-term rentals entirely, and most Canadian municipalities now have licensing requirements and principal-residence restrictions for STRs. The risks: lease termination, liability for noise complaints and property damage, bylaw fines, and potential liability for injuries to guests. Confirm your lease, condo rules, and municipal bylaws before listing any rental unit for short-term use.