Tenants in Prince Edward Island sometimes need to move before their lease ends, whether due to job changes, family needs, or other life circumstances. In these cases, subletting or assigning your lease can help you avoid penalties and fulfill your obligations under the law. This guide explains what you need to know about subletting and assigning a lease in Prince Edward Island, based on up-to-date official sources.
Understanding Subletting and Assignment in PEI
Subletting and assigning a lease are two ways tenants can transfer some or all of their rights to another person if they need to leave their rental unit before the lease expires. However, in both cases, you remain responsible for key obligations unless the process is done correctly through the Island Regulatory and Appeals Commission (IRAC), which administers residential tenancy matters in PEI.
What is Subletting?
Subletting means you rent out your unit to someone else (the subtenant) for a specific period but plan to return before your lease ends. You remain legally responsible for the rental agreement, including rent and any damages, during the sublet period.
What is Assigning?
Assigning your lease transfers all your rights and responsibilities to a new tenant for the remainder of your lease. Once assignment is complete and approved, you are released from further obligations.
Comparison Table: Sublet vs. Assignment
- Sublet: You find a subtenant, but your name remains on the lease. You can return when the sublet ends.
- Assignment: You transfer your lease completely to a new tenant, and you move out permanently.
Legal Requirements in Prince Edward Island
Under the Prince Edward Island Rental of Residential Property Act[1], tenants have the right to sublet or assign their lease with written permission from their landlord. However, landlords cannot unreasonably refuse this request.
Key Steps for Subletting or Assigning Your Lease
Here’s what you need to do to sublet or assign your lease legally in PEI:
- Notify your landlord in writing that you want to sublet or assign the unit.
- Find a suitable subtenant or assignee.
- Ask the new person to fill out a rental application (if required).
- Submit an Application to Assign or Sublet (Form 17) to your landlord for written approval.
- Landlord has 10 days to reply. If the landlord refuses, they must provide written reasons. If no response, consent is considered granted.
- Keep copies of all correspondence and approvals.
About Form 17: Application to Assign or Sublet
- Form Name: Application to Assign or Sublet (Form 17)
- Where to find: Official Form 17 (PDF)
- When to use: Use this form if you want to sublet your rental unit to another tenant temporarily, or assign your lease completely. You must submit it to your landlord and keep a copy for your records.
Can a Landlord Refuse Subletting or Assignment?
Under PEI law, your landlord cannot unreasonably deny your request to sublet or assign the unit. Reasons such as lack of rental history or poor references can be considered reasonable refusals, but discrimination or arbitrary decisions are not allowed. If you think your landlord is being unreasonable, you can file a complaint with the IRAC Rental Office.
What If I Move Out Without Permission?
If you leave without subletting, assigning, or formally ending your lease, you could still be responsible for rent and potential damages until the lease ends or a new tenant is found. For more on ending a lease properly, see How to Properly End Your Rental Agreement as a Tenant.
For a full overview of tenant protections in the province, see Tenant Rights and Landlord Rights in Prince Edward Island.
What Happens to My Security Deposit?
If you assign your lease, you may be eligible to have your security deposit returned, depending on your agreement and if the new assignee provides a deposit in your place. For more info on deposit rules, see Understanding Rental Deposits: What Tenants Need to Know.
Looking For a New Rental?
If you need a new place after subletting or assigning your unit, Find rental homes across Canada on Houseme for a wide variety of listings and helpful search tools.
- Can I assign my lease to anyone I choose?
While you can choose whom to assign your lease to, your landlord may require reasonable screening. The landlord cannot refuse based on discrimination, but can consider credit, references, or rental history. - Do I need to pay any fees to sublet or assign my lease?
Under PEI law, landlords may not charge an administrative fee for processing sublet or assignment requests, but you should confirm any costs in your original lease. - What should I do if my landlord refuses my request without a good reason?
If your landlord unreasonably denies your application, you can apply to the IRAC Rental Office for dispute resolution. Document all correspondence for your application. - Am I still responsible for damages if I sublet my apartment?
Yes, when subletting, you remain responsible for the rent and any damages to the unit during the sublet period. If you officially assign, responsibility transfers to the new tenant. - How long does my landlord have to respond to my request?
Your landlord has 10 days to provide written approval or denial. If no response is received, consent is legally considered granted.
Conclusion: Key Takeaways
- Subletting and assigning are viable options if you need to move out before your lease ends in PEI, but you must follow official procedures.
- Always use Form 17 and document all communication with your landlord.
- Familiarize yourself with your rights under the PEI Rental of Residential Property Act and the IRAC Rental Office if disputes arise.
Need Help? Resources for Tenants
- PEI IRAC Rental Office – Official board for rental disputes, applications, and tenant/landlord information.
- Tenants and Landlords Information, PEI Government
- Tenant support organizations and legal clinics: Check the government site for local contact numbers and advocacy help.
