How can landlords legally address tenant subletting Issues in Ontario?

In Ontario, one of the most serious issues that any landlord has to deal with is handling tenant subletting problems. Our experience at Royal York Property Management advises that such matters are attended with a certain level of efficiency and legality. With over a $10.1 billion portfolio comprising over 22,000 properties, we know how to navigate all the intricacies of subletting situations. This blog discusses the legal framework on subletting and some strategies for the effective management and prevention of unauthorized tenant subletting.

Understanding Subletting Laws in Ontario

Subletting occurs when a tenant rents out their rental unit to another person while maintaining their lease with the landlord. This is distinct from assigning a lease, where the tenant transfers their lease entirely to another person. According to the Residential Tenancies Act, subletting requires written consent from the landlord by the tenant. While a landlord cannot unreasonably refuse such consent, it can attach reasonable terms or conditions.

Why Might Tenants Want to Sublet?

Tenants may want to sublet for any of several possible reasons. Some of these may include temporary job relocation, an extended vacation, or financial problems making it hard for the tenant to continue with the rent payments. Subletting allows tenants to continue the lease but to transfer occupancy for a temporary period to someone else.

What Are a Landlord’s Rights Regarding Subletting?Landlords may consent or refuse subletting. If the tenant applies for subletting, then they must consider the proposed subtenant checking their points against those of the original tenant. Grounds for refusal must be reasonable, such as the subtenant's inability to pay rent or a history of problematic behaviour. Grounds of discrimination, however, cannot be entertained.

Steps for Landlords to Address Unauthorized Subletting

If landlords become aware that subletting is taking place without their consent, then the following must be done: Document everything. Identify a record of the communications and all the steps taken regarding the subletting that is unauthorized. Notice in N5 form should be issued to the tenant for notification of the offence; where appropriate, a Notice to End Your Tenancy for Interfering with Others, Damage, or Overcrowding should be given. Contact the tenant and allow them to have an opportunity to correct what is wrong.

Legal Recourse for Unauthorized Subletting

In case there is unauthorized subletting, the landlord may have to file an application with the Landlord and Tenant Board for the Board to hear the case. There are two possible ways wherein: It can terminate the tenancy or; it issues a compliance order that forces the tenant to remove the subtenant. At this point, legal advice or representation is important for the proper handling of such matters.

How to Prevent Unauthorized Subletting?The ways through which one can prevent subletting by others include taking proactive steps on time: prospective tenant screening by conducting comprehensive background investigations for reliability; creating a clear lease agreement with an effective subletting clause on the measures of subletting in the agreement regarding the responsibilities of the tenant and consequences of any unauthorized subletting; regular inspection to identify unauthorized occupants; open communication by encouraging tenants to communicate openly regarding their plans and potential likely need for subletting.

Best Practices for Managing Subletting Requests

Best practices for handling subletting requests include clear policy-making regarding subletting, specifying clear subletting guidelines in the lease agreement, quick response and reply to subletting requests in good timing and with complete fairness, and  maintaining good relationships by developing robust relations between landlord and tenant to help fulminate good cooperation. This is where property management companies, like ours, come in most handy regarding subletting issues. From tenant screening and lease management to legal advice—making sure considerations align under the laws of Ontario, which can help a landlord minimize the risk of potential unauthorized subletting.

Subletting is only manageable if there is knowledge of their legality in Ontario. By keeping open lines of communication, setting clear policies, and seeking professional help, a landlord can ensure they handle issues of subletting appropriately always. At Royal York Property Management, we continue to help landlords work through these challenges and maintain successful rental properties. 

Do you have subletting issues as a landlord or other property management-related problems? Contact Royal York Property Management today for professional services. Our professional services will keep you in compliance and running the rental properties with ease. Subscribe to our blog for more insights and tips on property management in Ontario.