What is a Residential Sublease Agreement?
A Residential Sublease Agreement is a contract a tenant uses to allow someone else to occupy their rental space for a portion or the remainder of the original lease.
You can sublet an entire rental property or a portion of it, such as a single room.
A Residential Sublease Agreement is also known as a:
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Sublease contract
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Sublet contract
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Subrent contract
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Sublet agreement
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Sublease form
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Subtenant agreement
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Sublet rental contract
Sublease vs. sublet
In most cases, sublease and sublet mean the same thing—a tenant (the sublandlord) rents out their leased property or part of it to another person (the subtenant) while staying bound to the original lease with the landlord. The subtenant pays rent to the sublandlord, but the sublandlord remains responsible to the landlord under the main lease.
Sublease Agreement vs. Lease Assignment
A Sublease Agreement allows you to keep your lease agreement while someone else rents a portion of the space, or the whole property, from you. This can help if you need financial assistance or have temporarily or permanently relocated.
A Lease Assignment Agreement means you’re signing over the original lease agreement to a new tenant, ultimately giving up the rental property and obligations. The new tenant takes on all the rights and responsibilities of the original agreement, and you lose your rights and obligations. A tenant may consider a lease assignment if they need to relocate permanently.
Is subleasing legal in Canada?
Yes, subleasing is legal in Canada as long as your Residential Lease Agreement permits it. Each province and territory also has set requirements for subleasing, so check the relevant legislation:
For example, Ontario’s Residential Tenancy Act (RTA) only considers it a sublease arrangement when the sublandlord vacates the rental property. Say you have a friend renting the basement of your rental house. They may be considered a roommate or occupant under the RTA, not a subtenant.
Since most Canadian provinces require landlord consent, consider using LawDepot’s Landlord's Consent to Sublease to secure your Sublease Agreement.
How does a Sublease Agreement work?
As a sublandlord, you take on the responsibilities of a landlord but are still liable for your original lease agreement. This is because your subtenant has no contractual relationship with your landlord. Your responsibilities may include:
- Reporting maintenance problems
- Paying rent to the landlord
A subtenant is responsible to the sublandlord, and the sublandlord is accountable to the original landlord. However, as the sublandlord, you are accountable if the subtenant breaches the original agreement.
A Sublease Agreement can’t go beyond the original agreement’s end date. If the subtenant is to remain in the property, they must negotiate a new lease with the landlord.
Key components to a Sublease Agreement
A Sublease Agreement should include clear details about the rental property, payments, and how the sublease connects to the original lease, such as:
- Parties and property: List the sublandlord, subtenant, and sometimes the landlord, along with contact information and property address.
- Relationship to the master lease: Reference the original lease and confirm the sublease follows its terms and restrictions.
- Term and rent: Specify the start and end dates, rent amount, payment schedule, and who receives payment.
- Utilities and deposits: Clarify responsibility for utilities and any security or damage deposits.
- Insurance and property use: State whether insurance is required and outline rules on pets, smoking, and alterations.
- Maintenance and default: Describe maintenance duties, conditions for returning the property, and what happens if rent isn’t paid or terms are breached.
- Legal terms and signatures: Include governing law, notice details, and signature lines for all parties, plus landlord consent if required.
How to write a Residential Sublease Agreement
Here’s how to write a Residential Sublease Agreement in nine clear, sequential steps with LawDepot’s template questionnaire:
- Identify what you’re subletting: Specify whether you’re subleasing the entire property or just part of it, such as a single room.
- Enter property and party details: Select your province, then add the full property address and the legal names, contact details, and notice addresses for the sublandlord, subtenant, and landlord.
- Reference the master lease: Include the original lease date and confirm whether a copy will be attached to the sublease.
- Confirm landlord consent: Indicate whether the landlord has approved the sublease or whether written consent is still required.
- Set the sublease area and term: Determine what area of the property will be leased. Then choose the tenancy type (fixed term or month‑to‑month) and ensure the dates align with your master lease.
- Define rent, deposits, and utilities: State the rent amount, payment method, due date, and who’s responsible for utilities, deposits, and other costs.
- Address insurance and property use: Note whether the subtenant needs insurance and establish rules for pets, smoking, vaping, and property alterations.
- Plan inspections and add special terms: Decide if you’ll complete a move‑in inspection and include any extra clauses or house rules.
- Finalize and sign: Review the completed Sublease Agreement alongside your original lease, confirm compliance with local tenancy laws, and sign the document.
Common mistakes to avoid when creating a Sublease Agreement
Here’s a table outlining common mistakes to avoid when creating a Sublease Agreement, with examples of how LawDepot’s guided questionnaire helps you prevent them: