How to Transfer a Lease: Subletting and Assigning in PEI

Thinking about moving out before your lease ends in Prince Edward Island? Whether you’re switching cities, travelling, or simply facing a change in plans, understanding your options for transferring your lease is essential. In PEI, tenants can usually sublet (temporarily rent their unit to someone else) or assign (permanently transfer their agreement) to another person—with the right procedures. This guide answers your most common subletting and assignment questions for Prince Edward Island.

Understanding Subletting and Assignment in PEI

In Prince Edward Island, the Residential Rental Act is the key law governing the rights and obligations of tenants and landlords.¹ The Island Regulatory and Appeals Commission – Residential Rental Office (RRO) oversees tenancy matters, including lease transfers.²

Tenants have the right to ask their landlord for permission to sublet or assign their lease, but the landlord cannot refuse without a valid reason. Here are the main differences:

• Subletting: You temporarily move out, but plan to return before your lease ends. A subtenant lives in your place for a set period, but you’re still legally responsible for the lease.
• Assignment: You permanently transfer the entire lease to a new tenant—afterward, you’re generally no longer responsible for the rental.

How to Request Sublet or Assignment Approval

To sublet or assign your rental unit, PEI law requires tenants to:

• Get written permission from your landlord before transferring occupancy
• Use the proper Request for Consent to Sublet or Assign form
• Give the landlord all necessary information about your potential subtenant or assignee

Your landlord must respond within a reasonable timeframe and cannot refuse without a good reason (such as concerns about the new tenant’s ability to pay rent).

Required Official Form

• Request for Consent to Sublet or Assign (Form 11) – Use this form to formally request your landlord’s written consent for subletting or assigning your lease.
  Download the official Form 11 (PDF, PEI government website).

Example: If you have to move to another province for work but your year-long lease still has six months remaining, you can find someone to take over your lease and submit Form 11 to your landlord for approval.

Landlord’s Response: What If They Refuse?

If your landlord refuses your request, they must provide a valid reason (such as poor references or inability of the new tenant to pay). If you think the refusal is unfair, you have the right to ask the Residential Rental Office to review the decision.

If your landlord does not respond to your written request within a reasonable time, PEI tenancy law may consider this as the landlord withholding consent without justification. Always keep copies of your communication and the completed form.

Subletting or Assigning: Your Rights and Responsibilities

No matter which option you choose, you are responsible for making sure the process follows the law. When subletting, you remain responsible for rent and damages unless agreed otherwise. If you assign the lease properly, responsibility typically shifts to the new tenant from the date of transfer (unless the agreement specifically says otherwise).

Learn more about tenant and landlord responsibilities in Obligations of Landlords and Tenants: Rights and Responsibilities Explained.

After Approval: Next Steps

• If approved, draft a written sublet or assignment agreement; provide copies to all parties
• Provide the subtenant or assignee with all keys and important documents
• Do a move-in inspection with the new occupant
• Inform utility companies and update contact info if moving permanently

Remember, when you assign your lease, you are usually released from all future obligations once the transfer is complete—unless your agreement says otherwise. Subletting means you remain on the hook for rent and damages if the subtenant falls short.

Ending Your Lease: Alternatives to Subletting/Assignment

If you wish to end your tenancy early and neither subletting nor assignment is workable, you may consider giving proper notice or negotiating directly with your landlord. For details, see What to Do If You Need to Leave Your Rental Before the Lease Expires.

For a broad outline of your province’s laws, visit Tenant Rights and Landlord Rights in Prince Edward Island.

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1. Can my landlord refuse to let me sublet or assign my apartment?
   Landlords in PEI cannot refuse a reasonable request to sublet or assign your lease unless they have a good reason, like concerns about the new tenant’s ability to pay rent or poor references. You can ask the Residential Rental Office to review if you think the refusal isn’t fair.
2. What form do I need to transfer my lease?
   You need to submit the Request for Consent to Sublet or Assign (Form 11) to your landlord. This is required before subletting or assigning the unit.
3. Who is responsible for rent if I sublet?
   If you sublet, you remain responsible for paying rent and any damages unless you assign your lease and are released from further obligations by your landlord.
4. Do subtenants have the same rights as regular tenants?
   Subtenants have similar rights and obligations, but you—the tenant on the original lease—remain legally responsible to the landlord, unless the lease is properly assigned.
5. What happens if my landlord refuses my request or doesn't reply?
   If your landlord refuses or ignores your request, you can apply to the Residential Rental Office to resolve the issue.

Conclusion: Key Takeaways

• Use the proper form and process for subletting or assigning to stay protected under PEI law.
• Your landlord must have a legitimate reason to refuse; otherwise, you can appeal.
• For a permanent move, consider assignment; for temporary absences, sublet.

If you have more questions, reliable help is available from the government and local tenant organizations.

Need Help? Resources for Tenants

• PEI Residential Rental Office (Island Regulatory and Appeals Commission): Handles residential tenancy matters and complaints
• Residential Rental Act (PEI): Review the full text of the law
• Consumer, Corporate and Financial Services, PEI: Tenant advice and information
• PEI Legal Aid: Free and low-cost legal help for eligible tenants

1. Residential Rental Act – Government of Prince Edward Island
2. Residential Rental Office (Island Regulatory and Appeals Commission)