Breaking the Lease

Breaking the Lease: Sublet vs. Assignment – What’s the Difference?

Life can be unpredictable. Maybe you're relocating for work, moving in with a partner, or heading back home—whatever the reason, there may come a time when you need to leave your rental before the lease ends. But before you start packing, it’s important to understand your legal options and the responsibilities that come with each.

Let’s break it down for both tenants and building managers to make sure everyone is on the same page.

📄 What Is a Lease and Why It Matters

A lease is a legal agreement between a landlord and tenant that outlines:

• The length of the tenancy (usually 12 months)

• The monthly rent

• Rules about the property (like noise, guests, pets, etc.)

• The obligations of both the tenant and the landlord

When you sign a lease, you're committing to pay rent and follow the terms until the end date. If you need to leave early, you can’t just walk away—you need to go through the proper steps.

💡 Thinking of moving out at the end of your lease?
You still need to give proper written notice—at least 60 days in advance—using Form N9 – Tenant’s Notice to End the Tenancy.

👉 Download the N9 Form here

⚠️ Common “Abuse of Sublet”

Subletting is legal in Ontario, but it can easily go sideways when not handled properly. Here are some of the most common issues:

🚫 Abuse by the Original Tenant

• Overcharging the subtenant (illegal under the RTA)

• Failing to get the landlord’s written approval

• Renting the unit as an Airbnb or short-term stay, which is usually prohibited

• Not returning to the unit and leaving the subtenant indefinitely

🚫 Abuse by the Subtenant

• Refusing to leave at the end of the sublet period

• Damaging the property while you remain liable

• Skipping rent—you’re still responsible to pay the landlord

• Bringing in unauthorized guests or roommates

• Violating building rules (noise, smoking, pets), putting your tenancy at risk

Remember: If you're the original tenant, you're still legally responsible for anything the subtenant does in your unit—so choose carefully and get everything in writing.

🔁 What Is an Assignment?

An assignment is when a tenant transfers their entire lease to a new person, and steps out of the lease permanently.

Tenant Responsibilities:

• You must get written consent from the landlord.

• Once the assignment is complete, you are no longer responsible for rent or damages.

• The new tenant takes over all lease terms exactly as they are.

This is the best option if you don’t plan to return and want to be fully released from the lease agreement.

Landlord Tip:

If the lease is assigned, you can’t change terms or increase rent until the lease ends—even with a new tenant.

🤔 So… Sublet or Assignment?

Sublet Assignment

Who stays on the lease? Original tenant stays on lease Original tenant is removed

Who is responsible? Original tenant New tenant

Is it temporary? Yes No – it’s a full handover

Do you return? Usually, yes No

Landlord approval? Required (can’t unreasonably refuse) Required (can’t unreasonably refuse)

💡 Final Thoughts

Whether you're a tenant needing to break your lease or a building manager reviewing sublet or assignment requests, it’s important to approach the process with transparency and care. Following the proper steps protects everyone involved.

If you’re not sure which option is best, consider:

• How long you plan to be away

• Whether you want to return

• If you’re ready to take on the risks of a sublet

• If you’re hoping for a clean break through assignment

📎 Need official forms or more info?
Visit the Landlord and Tenant Board – Sublets & Assignments Info for full details.

✨ Next up on Lily Daily Dwelling:
"Tenants’ Guide to Moving Out: Cleaning, Keys & Closing the Lease Properly"
Don’t miss it!