Assigning a Lease: Deposit Rights in Ontario

Rent & Deposits Ontario 3 min read · published March 29, 2026 Flag of Ontario

Tenants in Ontario may be asked to assign a lease when they need someone else to take over their tenancy or when they must leave before the lease ends. Knowing your rights about deposits, last month’s rent, and what the landlord can legally ask for[2] protects your money and reduces stress. This guide walks renters through practical steps for assigning a lease, how deposits are handled under provincial rules, what the Landlord and Tenant Board can do, and which official forms to use if there is a dispute. It also explains how to document the process, give and receive notices, and request a refund or transfer of a deposit so you can resolve matters quickly and lawfully in Ontario.

What assigning a lease means and who to notify

Assigning a lease means a tenant transfers their remaining tenancy to a new person who becomes the tenant under the same agreement. In Ontario, tenants should notify the landlord in writing and get the landlord's consent or follow any assignment clause in the lease. If you need official help, the Landlord and Tenant Board handles disputes and applications.[1]

Keep all rent receipts organized and stored safely.

Key steps to protect your deposit when assigning

  • Record and keep a written assignment agreement that details who pays the deposit and when.
  • Collect a written receipt or proof when transferring any deposit or last month's rent to the incoming tenant or landlord.
  • Serve a written notice to the landlord confirming the assignment and the proposed timeline.
  • Agree on a move-out date and schedule a final inspection appointment with the landlord.

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If the landlord won't transfer or refund the deposit

Disagreements about deposit transfer often require clear documentation and, if unresolved, an application to the Landlord and Tenant Board. Collect all receipts, messages, and photos that show payment, the condition of the unit, and any agreed arrangements.

Respond to legal notices within deadlines to avoid losing rights.
  • File an application with the Landlord and Tenant Board specifying the dispute and the relief you want.
  • Gather evidence: receipts, bank transfers, photos of the unit at move-out, and written agreements.
  • Attend any scheduled hearings and present your records clearly and calmly.
  • Follow the Board's decision to recover a refunded deposit or order a transfer.

FAQ

Can my landlord keep my deposit when I assign a lease?
Not automatically; a landlord can only keep amounts that are permitted by law or agreed in writing. Document any transfer or refund agreement and seek the Landlord and Tenant Board if you disagree.[1]
Do I need permission to assign my lease?
Check your lease: some agreements require landlord consent or set conditions. If the lease has an assignment clause follow it and get consent in writing.
How do I start a dispute about a deposit?
File the appropriate application with the Landlord and Tenant Board and include receipts and written agreements as evidence.[1]

How-To

  1. Review your lease and document any assignment clause.
  2. Serve and obtain written consent notice from the landlord and incoming tenant.
  3. Agree in writing how the deposit or last month's rent will transfer.
  4. Complete and keep copies of assignment paperwork and move-in/out inspection records.
  5. If the landlord refuses to transfer or refund, file an application with the Landlord and Tenant Board.[1]

Help and Support / Resources


  1. [1] Landlord and Tenant Board forms and information
  2. [2] Residential Tenancies Act, 2006 (e-Laws)

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David Chen
David Chen

Tenant Law Analyst, Tenant Rights Canada

David specializes in Ontario residential tenancy law and Northern territories housing regulations. He has followed developments at the Landlord and Tenant Board closely for over eight years and writes extensively on LTB procedures, rent increases, and maintenance obligations.