Ontario Legal Precedents: Short-Term Rental Subletting Cases
Short-term rental subletting—like renting your apartment on Airbnb—has become a common question for Ontario tenants. But with growing popularity come legal uncertainties. If you’re a tenant thinking about subletting your unit for a short stay, or if your landlord has raised concerns, understanding the rules and recent case decisions is vital. This guide explains the legal landscape, the role of the Landlord and Tenant Board (LTB), and what both tenants and landlords need to know based on Ontario’s Residential Tenancies Act, 2006.
Understanding Short-Term Rental Subletting in Ontario
Ontario law distinguishes between subletting and assignment, and sets out specific requirements for tenants who want to sublet. Short-term rental platforms such as Airbnb, Vrbo, or similar sites are generally considered sublets if you are renting out your entire unit or a room for a short period while you remain responsible for the lease.
- Subletting: You temporarily hand possession of your unit to another person (the subtenant), but plan to return before your lease ends.
- Assignment: You permanently transfer your lease to another person, with no plan to return.
Ontario tenants have rights to request subletting with landlord consent, but there are key limitations—especially regarding short-term vacation rentals. Unauthorized subletting might lead to eviction or legal action, so always proceed carefully.
Common Legal Issues in Short-Term Subletting
- Subletting without written landlord approval
- Renting out on Airbnb or other platforms against the lease
- Charging subtenants higher rent than you pay (profit from subletting)
- Municipal bylaw violations for unauthorized short-term rentals
- Insurance and liability concerns during a sublet
Conflicts often arise when landlords discover tenants are advertising their rental on short-term platforms without permission. These situations have led to several important landlord-tenant board decisions.
Notable Ontario Tribunal and Court Decisions
The Landlord and Tenant Board (LTB) handles most disputes about residential rental housing in Ontario.[1] Here are some relevant legal precedents:
- Landlord v Tenant (LTB File TNL-69031-16): The tenant was found in breach of the lease for repeated Airbnb rentals without lawful consent. The Board held that short-term rental subletting required specific landlord permission.
- Paradise Apartments Ltd. v. Turner (2018): Ontario Superior Court upheld a landlord’s right to terminate a tenancy when the tenant sublet on Airbnb in violation of the lease.
- Landlord v Tenant (LTB File TSL-92244-17): A tenant’s right to sublet was recognized, but only with proper notice and written landlord approval. Unauthorized subletting led to an eviction order.
These cases reinforce that tenants must follow the specific subletting process and cannot use platforms like Airbnb without explicit written consent or contrary lease terms.
Key Legal Takeaways
- Landlords cannot refuse sublets arbitrarily, but they may have legitimate grounds to say no, especially for short-term vacation rentals.
- Profiting from subletting (charging more than your rent) is not allowed under the Residential Tenancies Act, 2006.[2]
- Municipal bylaws (like those in Toronto) may further restrict or require registration for short-term rentals.
What Are Your Rights and Responsibilities?
Tenants and landlords both have clearly defined rights in Ontario. For a wider understanding of landlord and tenant obligations beyond subletting, see Obligations of Landlords and Tenants: Rights and Responsibilities Explained. Knowing these duties can help you avoid unintentional violations.
To further educate yourself, visit the Tenant Rights in Ontario resource for a comprehensive overview.
Required Forms for Subletting
- Form N9 – Tenant’s Notice to End the Tenancy
This form is used if you intend to leave before the lease expires, such as when assigning your tenancy or permanently leaving the unit. Download N9 – Tenant's Notice to End the Tenancy (PDF).
Example: If your landlord approves your request to assign your lease rather than sublet, you may use this form to give proper notice. - Request to Sublet Form (Written Letter)
Ontario’s Residential Tenancies Act does not require a specific standardized form to request a sublet, but you must make the request in writing with details about the subtenant and duration. The landlord must respond within a reasonable time.
For step-by-step guidance on ending your lease early or initiating an official subletting process, check What to Do If You Need to Leave Your Rental Before the Lease Expires.
How the Landlord and Tenant Board Handles Short-Term Sublet Disputes
If a disagreement arises over a proposed sublet or alleged unauthorized Airbnb use, either party may apply to the LTB. Typical remedies include:
- Termination of tenancy (eviction) orders
- Compensation for the landlord if a tenant profited from a sublet
- Orders for compliance with the Residential Tenancies Act, 2006
Resolution is determined on a case-by-case basis, often influenced by the specifics of the lease and the tenant's conduct.
FAQs: Short-Term Rental Subletting Cases in Ontario
- Can I sublet my apartment on Airbnb in Ontario?
Usually, only if you have your landlord’s written consent and follow your lease terms. Unauthorized Airbnb rentals may result in eviction. - What happens if I sublet without landlord approval?
Your landlord can apply to the LTB to terminate your tenancy, especially if you profited or violated lease rules. - Does the law treat short-term sublets differently from long-term?
Yes. Short-term, vacation-style sublets get extra scrutiny and are sometimes not permitted under city bylaws or leases. Always check both your lease and local rules. - Can my landlord refuse my request to sublet?
They can only refuse for valid reasons, such as reasonable concerns about the subtenant or use of the unit. - Where do I get help if there's a dispute?
You can contact the Landlord and Tenant Board or a tenant advocacy organization for advice and dispute resolution options.
Need Help? Resources for Tenants
- Landlord and Tenant Board (LTB) – Ontario
- Ontario Residential Tenancies Act, 2006
- Advocacy Centre for Tenants Ontario (ACTO) – legal resources and support
- 211 Ontario – Locate local tenant support services
- Looking for a new place? Explore Houseme for nationwide rental listings
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Bob Jones
Editor & Researcher, Tenant Rights Canada
Bob writes and reviews tenant law content for various regions. They’re passionate about housing justice and simplifying legal protections for renters everywhere.
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