Subletting can be a practical option for tenants who need to leave temporarily or share costs, but it raises common questions about last month's rent and who is responsible for it in Ontario. This guide explains how last month's rent generally works when you sublet, the difference between the original tenant, subtenant and landlord obligations, and what to do with prepaid rents or security deposits. You’ll find clear steps for documenting payments, the official forms and deadlines to watch, and practical examples so you can protect your money and avoid disputes under Ontario law. If you are a subtenant or an original tenant arranging a sublet, this article helps you understand your rights and the steps to resolve common problems. It uses plain language aimed at tenants in Ontario.
How last month's rent applies when subletting
In Ontario the Residential Tenancies Act, 2006 sets the rules for rent and deposits. The person who originally signed the lease remains responsible to the landlord, even when they approve a subtenant. That means the original tenant must make sure rent is paid to the landlord and must keep any prepayments or last-month arrangements clear in writing. If the original tenant collected last month’s rent from a subtenant, they must either hold it as agreed or apply it to the tenancy when the time comes; the landlord cannot demand the same last-month payment twice from both parties under the RTA.[1]
Common scenarios and who holds responsibility
- If the original tenant already paid a last-month rent deposit to the landlord, the subtenant should not have to pay the landlord again for the same last month.
- If the subtenant prepaid a final month to the original tenant, the two tenants should have a written agreement describing how that money will be used or returned.
- If there is any disagreement about payments or deposits, either party can apply to the Landlord and Tenant Board for dispute resolution; see forms and filing rules for details.[2]
Written agreements are the best protection. A short clause that explains whether the original tenant will hold last-month rent, forward it to the landlord, or return unused funds at the end of the subtenancy prevents most misunderstandings.
Practical steps to protect last-month funds
- Put the arrangement in writing: who paid, how much, and how the money will be held or applied.
- Keep records: photos of the lease, receipts, messages and bank records showing payments.
- Tell the landlord in writing about the sublet and whether last-month rent has been prepaid by the subtenant or the original tenant.
- If a dispute arises, file the correct application with the Landlord and Tenant Board promptly; check form deadlines and evidence requirements.[2]
When to involve the Landlord and Tenant Board
If you cannot resolve where last-month rent is held or the landlord claims payment twice, use the Landlord and Tenant Board to ask for a decision. The Board handles disputes about deposits, unpaid rent, and return of prepaid amounts. Prepare evidence such as the lease, the written sublet agreement, receipts and bank records before filing. The Board's forms page lists applications and instructions for tenants and landlords.[2]
Important tenant protections under the law
Ontario’s Residential Tenancies Act, 2006 limits what landlords can demand and protects tenant deposits and prepaid rent when properly documented. The act also clarifies that an original tenant cannot transfer their primary legal responsibility to a subtenant; the landlord’s relationship remains with the person on the lease unless a formal assignment or new lease is agreed. Always review the RTA provisions relevant to deposits and notice requirements before agreeing to a sublet.[1]
FAQ
- Can a landlord require both the original tenant and the subtenant to pay last month’s rent?
- No. If the original tenant already prepaid last month’s rent to the landlord, the landlord cannot collect the same last-month payment again from a subtenant. Disputes can be brought to the Landlord and Tenant Board for resolution.[2]
- Who should hold a subtenant’s prepaid last-month rent?
- Ideally the landlord holds last-month rent directly, or the original tenant holds it under a written agreement that explains when and how it will be used or returned.
- What if the original tenant disappears and the subtenant paid the last month?
- The subtenant can file an application with the Landlord and Tenant Board and present proof of payment and the sublet agreement. Keep copies of receipts and communications to support the claim.[2]
How-To
- Gather documents: lease, sublet agreement, receipts and bank records.
- Tell the landlord in writing about the sublet and clarify who is holding last-month funds.
- If agreement fails, complete the correct Landlord and Tenant Board application and attach your evidence.[2]
- Attend any scheduled hearing or mediation and bring originals of all documents and receipts.
Key Takeaways
- Written agreements and receipts prevent most disputes about last-month rent.
- The original tenant remains legally responsible to the landlord unless the lease is formally changed.
- If a dispute arises, use the Landlord and Tenant Board and include clear evidence.
