Please note that the information provided herein is not legal advice and is provided for informational and educational purposes only. It may not be up to date. Laws change often and without notice. If you need legal advice with respect to a residential sublet agreement or sublease contract, you should seek professional assistance (e.g. make a post on Dynamic Legal Forms). We have Toronto, Ottawa, Hamilton, Brampton, Mississauga and other Ontario lawyers registered to help you. You can also contact me directly.
This is the second blog I’m writing about residential sublet agreement or sublease contracts. In the first blog, I talked about what residential sublet agreements are and how this relationship differs from a residential lease agreement. In this blog, I’m going to talk about how specific terms are dealt with in the residential sublet agreement (e.g. termination, term, rent, etc.) as per the Residential Tenancies Act, 2006.
The Term of a Residential Sublease Agreement begins on a certain date (as specified in the Agreement) and continues for a period or term (e.g. 1 year, 6 months, etc.) until it expires or is terminated on a certain date. Importantly, that date MUST be before the Tenant’s term or period comes to an end under the Residential Lease Agreement. So says section 2(2) of the Act. After the Term of the Sublease comes to an end, the Tenant will have the right to resume occupancy of the rental unit. As previously discussed, if the Sub-Tenant is still in possession of the rental unit after the end of the subtenancy, the Landlord or Tenant may apply to the Board for an order EVICTING the Sub-Tenant: section 101(1). This application must be made within 60 days after the end of the subtenancy: section 101(2). The Tenant can even ask the Board to order the Sub-Tenant to pay compensation for use and occupation of the rental unit if, after the subtenancy has ended, the Sub-Tenant is still in possession of the rental unit: section 102.
A Tenant cannot charge the Sub-Tenant more than what they pay the Landlord: section 134(3)(a).
Compensation for Damages
The Tenant may apply to the board for an order requiring the Sub-Tenant to pay reasonable costs to the Tenant for repairing or replacing damaged property. The Board may make such an order if the Sub-Tenant, another occupant of the rental unit or a person whom the Sub-Tenant permits in the residential complex willfully or negligently causes undue damage to the rental unit or the residential complex and the Sub-Tenant is in possession of the rental unit.
Under the Act, a Tenant can terminate a residential subtenancy by giving notice and then (if need be) applying to the Board for an eviction order. Such notice may be given as a result of the Sub-Tenant’s failure to pay rent or for doing something contrary to the Act, discussed below.
Failure to Pay Rent
A Tenant can terminate a subtenancy by giving notice of termination for non-payment of rent lawfully owing. The notice of termination is only effective after the 7th day (in the case of a daily or weekly tenancy) or after the 14th day (in all other cases): sections 99 and 59. The notice of termination must set out the amount of rent due and specify that the tenant can avoid the termination of the tenancy by paying, on or before the termination date specified in the notice, the rent due and any additional rent that has become due. If the rent (both arrears and additional rent) is paid before the Tenant applies to the Landlord and Tenant Board for an order terminating the tenancy and evicting the tenant based on notice, then the notice of termination is VOID: sections 99 and 59(3).
Termination for Cause
A Tenant can also terminate a subtenancy on various grounds by giving notice to the Sub-Tenant that they have done something wrong. This is called “Termination for Cause” and includes:
The Sib-Tenant knowingly and materially misrepresented his or her income or that of a member of his or her family occupying the rental unit: sections 99 and 60.
The Sub-Tenant or another occupant of the rent unit commits an illegal act or carries on an illegal trade, business or occupation or permits a person to do so in the rental unit: sections 99 and 61.
The Sub-Tenant or another occupant of the rental unit or a person whom the Sub-Tenant permits in the residential complex willfully or negligently causes undue damage to the rental unit: sections 99 and 62.
Interference with Reasonable Enjoyment
The Sub-Tenant, another occupant of the rent unit, or a person permitted in the residential complex (which contains the residential unit) by the Sub-Tenant, substantially interferes with the reasonable enjoyment of the residential complex for all usual purposes by the Tenant or another tenant or substantially interferes with another lawful right, privilege or interest of the Tenant or another tenant: sections 99 and 64.
The Sub-Tenant, another occupant of the rental unit or a person permitted in the residential complex by the tenant acts or fails to act in a way that seriously impairs or has seriously impaired the safety of another person and that act or failure to act happened in the residential complex: sections 99 and 66.
Too Many Persons
The number of persons occupying the rental unit on a continuing basis results in a contravention of health, safety or housing standards required by law: sections 99 and 67.
Remember: there are notice requirements (time limits, content, etc.) that must be met. The Tenant may also need to apply to the Landlord and Tenant Board for an order evicting the Sub-Tenant if they remain in the rental unit and have not rectified the situation (assuming it can be rectified!).
Incorporation the Terms of a Residential Lease Agreement
Since the Sub-Tenant does not enjoy the same rights or have the same obligations as the Tenant vis-à-vis the Landlord, the Residential Sublease Agreement can be used to grant those rights and impose those obligations. This is accomplished by requiring the Sub-Tenant to be responsible to the Tenant for all the Tenant’s terms, conditions, and obligations under the Residential Lease Agreement during the Term of the Residential Sublease Agreement. This covers the Tenant’s obligations, but what about the Sub-Tenant’s rights? The Sub-Tenant may ask that the Tenant and/or Landlord be responsible to the Sub-Tenant for the Landlord’s statutory obligations to the Tenant under the Act. Whether the Tenant or Landlord will accept such liability will be dealt with in negotiations. But it is probably best for the Tenant and Landlord not to mention, offer, or consent to these things from the get go.
This legal form can be used by a Tenant to rent out their rental unit. This agreement requires all 3 parties (Landlord, Tenant, and Subtenant) to sign. The Landlord consents to the . You need to read the DL Guide to know what is and isn’t legal with respect to residential subleases. For example, did you know that the Tenant cannot charge more to the Sub-Tenant than what the Landlord is charging the Tenant? Also, did you know that there is no overholding period with respect to the Sub-Tenant (i.e. after the term or period of sub-tenancy expires, the term or period is not automatically renewed – unlike with a regular lease agreement!). Sub-Tenants are not necessarily equal under the law to Tenants.
Here’s the sample Video Guide that comes with this Residential Sublease Agreement:
A Landlord can use this Agreement to rent out a residential unit. This Agreement comes with a Rental Application. All of Dynamic Legal Forms‘ legal forms are lawyer-prepared, simple to read, easy to customize, and only a fraction of the price a lawyer would charge. Also, each legal form comes with a FREE VIDEO GUIDE (watch a useful example of how this legal form can be customized), a FREE DL GUIDE (read helpful information about this legal form), and another FREE DL GUIDE that sheds valuable insight into how legal forms can be challenged. What are you waiting for?
This information and this sample video guide is NOT legal advice and is provided for informational purposes only. If you need an Ontario lawyer, go to Dynamic Legal Forms and make a post.