assignment of tenancy ontario

A partnership led by CLEO

Assign to a new tenant

Question & Answer

Another legal way to move out early is to assign your place to a new tenant.

Assigning means that the new tenant replaces you and takes over your rental agreement. The amount of rent and all other details of the agreement stay the same. You are not responsible if the new tenant causes damage or owes rent. But when you assign, you do not have the right to move back in later.

You must ask your landlord for permission to assign. It is best to ask in writing and keep a copy of your request. Your landlord must answer within 7 days.

If your landlord agrees to let you assign, they are allowed to charge you a fee. The fee can't be more than your landlord had to spend on things like a credit check, and advertising if the landlord found the new tenant.

Your landlord can refuse to let you assign to a particular person if there is a good reason. For example, if the person caused problems for a landlord in the past, such as damaging property or not paying rent.

Write a letter asking to assign

Use this tool to write a letter to your landlord asking if you can assign your unit.

If your landlord won’t let you assign to anyone

If your landlord won't let you assign at all or does not give you an answer within 7 days, you can move out with 30 days' notice .

To do this, give your landlord a Tenant’s Notice to End the Tenancy (Form N9) no later than 30 days after you asked for permission to assign.

In this situation, the usual rules about the timing of your notice do not apply. You can choose any termination date , as long as it is at least 30 days after the day you give your landlord the notice.

You can mail or fax the notice, or give it to your landlord in person. You can also give the notice to your landlord's agent. An agent can be someone who works for your landlord, for example, the superintendent or someone who works in the property manager's office.

NOTE: If you mail the notice you must do this 5 days before the day you need to give it to your landlord.

You might not have a right to assign if you live in

• subsidized housing
• a superintendent's unit
• housing provided by a school where you work or are a student

Steps to Justice Partners

• -A: Font Smaller
• +A: Font Larger
• High Contrast
• Low Contrast
• Reset Contrast
• Help for Renters
• Book a Training Session
• General Inquiries
• Media Inquiries
• About the Right to Housing
• Our Tenant Services
• Education & Training
• Policy Advocacy
• Stories & Updates
• For Tenants
• For General Public
• For Service Providers
• For Housing Providers
• For Decision-Makers
• News & Analysis
• Policy Recommendations
• Stay Informed
• Take Action
• Attend an Event
• Annual Reports
• In the Media

Occupancy rules: Guests, roommates, subtenants and lease assignments – Ontario housing law basics 

August 23, 2023

The information on this page outlines rules, renters’ rights and landlords’ responsibilities as laid out in Ontario housing laws such as the Residential Tenancies Act, the Human Rights Code and the Housing Services Act.

Usually, a landlord cannot stop a tenant from hosting guests in their rental unit. In regular tenancies, a tenant has the right to welcome any guest that the tenant wants to visit them in their unit, and for any period of time. If a landlord tries to control which guests a tenant can invite into their home, this may be considered harassment or discrimination .   

However, there are some limits to hosting guests. For example, a tenant is responsible for damage that their guests cause to the rental property or if their guests interfere with the landlord’s or other tenants’ interests in or enjoyment of the rental property. A tenant may also be responsible if they allow anyone to commit any illegal acts at the rental building. In these cases, a landlord will sometimes give a tenant’s guest a trespass notice. Although the tenant is still allowed to have that guest visit them in their own unit (if they want to), that guest is not allowed to go anywhere else in the rental property.  

In subsidized or Rent-Geared-to-Income (RGI) housing, the guest policies vary but tenants are normally not allowed to have long-term guests and there is normally a limit on the number of days that a tenant can host a guest. For more information on guest policies in subsidized housing, a tenant should consult the policies set out by their landlord.  

Typically, a landlord cannot raise rent or charge extra fees when a tenant hosts a guest. Ontario’s Residential Tenancies Act (RTA) prohibits landlords from collecting any refundable or non-refundable fees, except for a previously agreed upon key deposit and/or last month’s rental deposit. However, if a guest damages property, the tenant who invited that guest may be responsible to pay for the damage.   

The rules for tenants in Rent-Geared-to-Income (RGI) housing are different. Each RGI housing provider must have a guest policy which allows guests, but the policy will have limitations on how long a guest may visit. Violating a guest policy in RGI housing could result in a rent increase. For more information on guest policies in RGI housing, a tenant should consult their housing provider’s policies.  

Roommates, occupants, and shared facilities 

A roommate or occupant is a person who has not signed a lease, but who lives in the rental unit with the permission of the tenant. Typically, a landlord cannot raise rent or charge extra fees when a tenant adds a roommate or occupant. Ontario’s Residential Tenancies Act (RTA) prohibits landlords from collecting any refundable or non-refundable fees, except for a previously agreed upon deposit for keys and/or one month’s rent. However, if a guest damages the rental property, the tenant who invited the guest may be responsible for the damage.   

The rules for tenants in Rent-Geared-to-Income (RGI) housing are different. A tenant must inform their RGI housing provider if they would like to have a person staying with them for longer than the housing provider’s policies allow. If the RGI housing provider agrees to allow the tenant to add a roommate, the tenant will likely be required to provide information about the roommate to the RGI housing provider, and their rent will likely increase. Violating these policies in RGI housing could result in a rent increase. Tenants should consult their RGI housing provider’s policies for more information about guest policies.   

Some municipalities set by-laws for the minimum amount of floor area required for each person living in one room. A landlord can apply to evict a tenant for overcrowding a unit if a rental unit has so many occupants that the unit is overcrowded. A tenant should consult their municipal by-laws for more information on what constitutes overcrowding.  

The protections for tenants under Ontario’s Residential Tenancies Act only apply to certain types of situations when the facilities of a unit are shared by multiple people.   

Generally, RTA protections apply to a tenant who rents a bedroom and shares all other facilities of a unit with other tenants who all have their own leases.   

RTA protections do not apply to a tenant who shares a kitchen or a bathroom with the person they rent from – which could include their landlord or another tenant who is the lease holder – or with an immediate family member of the landlord.  

In any situation where a tenant shares facilities with other people, they should seek legal advice to confirm whether the protections of the RTA apply to them. Tenants can also consult Community Legal Education Ontario’s (CLEO) resource for more information about their rights in specific housing situations.  

Tenants who rent a bedroom and share facilities – and who are protected by the RTA – should be aware that:  

• Shared amenities like kitchens, living rooms and bathrooms are considered common areas. If a landlord would like to access these areas, they do not need to provide the tenants with a written notice at least 24 hours before would like to enter the unit. However, the landlord would have to provide 24 hours written notice to enter the tenant’s bedroom.   
• If a landlord rents bedrooms within a unit to different tenants under separate leases, it is unlikely that the tenants will have input on who the landlord permits to live in the other bedrooms.   
• These living arrangements are often called rooming houses. Rooming houses are not permitted in many municipalities. If the municipality learns about a rooming house, for example because someone makes a maintenance complaint to the municipality’s by-law enforcement office, the municipality may order the property owner to stop operating the property as a rooming house. This can put the tenants at risk of eviction. The LTB does not consider whether a unit is permitted, and maintenance complaints can be made to the LTB even when a unit is not permitted in a municipality.  

Subletting 

In Ontario’s Residential Tenancies Act (RTA), subletting happens when a tenant transfers their entire rental unit to another person or group – known as a subtenant – for a specific period of time, and then the tenant later returns to resume living in their unit, and the subtenant moves out. The original lease agreement between the tenant and the landlord remains in effect. This means that the tenant remains responsible to the landlord for paying rent. Typically, a subtenant pays rent to the original tenant during the subtenancy. However, even if the subtenant pays the landlord directly, the tenant is still ultimately responsible for ensuring that the rent is paid to the landlord. The tenant is also responsible for any damage that the subtenant causes to the unit.  

There are some restrictions on subletting a unit. For example, a sublet agreement must specify the time period for the subtenancy. This means that a subtenancy cannot go month-to-month like a tenancy can. Furthermore, a tenant must leave the rental unit while allowing a subtenant to live in the unit. There is no sublet relationship if a tenant does not leave the rental unit while allowing another person to live in the unit. If the tenant lives in the unit at the same time as another person, then that other person is an occupant or a roommate. Read more about the differences between a sublet, an occupant, and a roommate .  

The Residential Tenancies Act (RTA) requires a tenant to get their landlord’s permission to sublet their unit. However, a landlord is not allowed to “arbitrarily” or “unreasonably” stop a tenant from subletting the unit. If a landlord refuses to allow their tenant to sublet their unit, the tenant can apply to the Landlord and Tenant Board (LTB) to determine whether the landlord arbitrarily or unreasonably refused to allow them to sublet.  

If a tenant gives possession of the rental unit to another person without the landlord’s consent, the sublet agreement is not valid at the LTB and the person who has taken possession could be evicted by the landlord.   

Rent-Geared-to-Income (RGI) housing policies normally prevent a tenant from subletting their unit. If an RGI housing provider prohibits subletting, and a tenant sublets their unit anyway, the tenant could be evicted. Tenants who live in RGI housing should consult their housing provider’s policies for more information on subletting.  

A tenant who sublets their unit is still entitled to all the benefits of their tenancy agreement , and they also still hold all the responsibilities of that agreement with their landlord. The tenant is also responsible to ensure that their subtenant upholds all the responsibilities of the tenancy agreement with the landlord . For example, t his means that the tenant is responsible to ensure that the rent is paid to the landlord , and the tenant can apply to evict their subtenant if the subtenant fails to pay the rent.    

During the subtenancy, t he subten ant is entitled to the benefits ou tlined in the sublet agreement a s well as in the RTA . The subtenant is also accountable for any responsibilities described in their sublet agreement that do not conflict with the RTA . Typically, landlords do not have any responsibilities towards the subtenant. However, the landlord continues to have responsibilities towards the tenant when that tenant sublets the rental unit. For example, a landlord should continue to maintain the unit and make repairs during a subtenancy . A subtenant can inform the tenant or the landlord of repairs that are needed.  

Lease assignments

A tenant can “assign” their lease to another person. When a lease is assigned to another person, the original lease agreement ends and a new lease agreement begins. The new lease agreement is between the new tenant (or “assignee”) and the landlord.  

As a result, the original tenant (or “assignor”) will no longer have a right to occupy the unit. The original tenant will not owe any rent that is due after the date that the assignment begins. All of the rights to the unit and the obligations to the landlord become the responsibility of the new tenant. The details of the lease remain the same, including the type of lease (yearly, monthly, weekly, daily, or fixed-term), any included amenities or services, and the amount of rent owed.  

As noted above, if a tenant chooses to sublet their unit, the lease agreement between the original tenant and the landlord continues. The sublet agreement creates a relationship between the tenant and the subtenant. The tenant becomes the subtenant’s landlord. Often, the subtenant pays rent to the tenant and the tenant pays rent to the landlord. If the subtenant is late paying their rent, the tenant will still owe the landlord that rent.  

If a tenant chooses to assign their lease, the new tenant’s lease agreement replaces the original tenant’s lease agreement. The original tenant will owe the landlord rent up until the day before the start date of the assigned lease. At the start date of the assigned lease, the new tenant will owe the landlord rent, and the original tenant will not owe any more. Once the new tenant’s lease begins, the original tenant has no remaining rights to the unit. For example, the original tenant cannot move back into the unit at the end of the new tenant’s assigned lease.  

Section 95 of the RTA describes the rules about lease assignments.  

A tenant must ask for their landlord’s approval to assign their lease. Usually, the tenant is also responsible for finding a new tenant (the assignee) to take over the lease. However, there are some circumstances where the landlord may want to choose the assignee, for example from their building’s waiting list.  

It is up to the tenant to decide whether to ask for their landlord’s approval first and then try to find an assignee, or whether to find an assignee first and then ask for the landlord to approve the assignment and the potential assignee at the same time. Keep in mind that a landlord may refuse to allow the lease assignment and/or refuse to approve a particular assignee suggested by the tenant.  

If a landlord refuses to allow a tenant to assign their lease, the tenant may choose to continue living in the unit and keep their original lease agreement. However, if the tenant would still like to move out, they may end their tenancy by giving the landlord an N9 form called “Tenant’s Notice to End the Tenancy”. The tenant must provide this notice within 30 days of the landlord’s refusal, and they must provide the landlord with at least 30 days’ notice before they intend to move out.   

A landlord has seven days to respond to a tenant’s request to assign their lease. If the landlord has not replied within seven days, the tenant then has 30 days to give the landlord an N9 form to end their tenancy. The tenant must provide the landlord with at least 30 days’ notice before they intend to move out.  

If a landlord consents to a tenant’s request to assign their lease but does not approve the specific assignee chosen by the tenant, the tenant can apply to the Landlord and Tenant Board (LTB). The landlord is not allowed to “unreasonably” or “arbitrarily” refuse an assignee chosen by the tenant. However, if the landlord has a good reason to refuse the request, the tenant will have to find a different assignee.   

If the LTB agrees that the landlord “unreasonably” or “arbitrarily” refused to consent to a particular assignee, the LTB may order that the landlord agree to the assignee, that the landlord agree to a different assignment suggested by the tenant, or that the lease agreement between the tenant and landlord be terminated. If a tenant finds themselves in this situation, they should get legal advice about their options.  

If you need help in your housing, we may be able to assist you.

u003cp style=u0022text-align: left;u0022u003eThe Canadian Centre for Housing Rights (CCHR) provides u003ca href=u0022https://housingrightscanada.com/our-work/our-tenant-services/u0022u003efree, individualized servicesu003c/au003e to renters in Ontario who are facing challenges in their housing.u003c/pu003e

Learn more about Ontario renters’ rights and landlord responsibilities.

Starting a tenancy – Ontario housing law basics

16 Feb 2022 Starting a tenancy in Ontario, what to do about discrimination during the application process, rules around deposits and rules about pets.

Maintaining a tenancy – Ontario housing law basics

15 Mar 2022 Maintaining a tenancy in Ontario, and the rules related to tenant and landlord responsibilities.

Ending a tenancy – Ontario housing law basics

25 Apr 2022 Scenarios when a tenancy in Ontario might end, housing laws related to the eviction process, the rights of tenants when they or their landlord want to end a tenancy and processes at the Landlord and Tenant Board.

Human rights in housing – Ontario housing law basics

25 Mar 2021 Ontario human rights laws, which laws protect human rights in Canada, and how the Ontario Human Rights Code protects human rights in housing.

Discrimination in housing – Ontario housing law basics

14 May 2021 Ontario laws that protect individuals from discrimination, examples of discriminatory treatment in housing and resources that may help if you are being discriminated against.

Types of tenancies – Ontario housing law basics

11 Mar 2021 Laws that govern the different types of tenancies in Ontario and where to find support for housing concerns.

Evictions – Ontario housing law basics

13 Jan 2022 Legal reasons for eviction in Ontario, required notice periods that must be given to tenants, what happens after an eviction notice is served, the process at an eviction hearing, and where Ontario renters can go for legal information and help.

Renovations – Ontario housing law basics

19 Mar 2021 Ontario tenants’ rights when a landlord wants to renovate a unit, disability-related concerns and how to handle a “renoviction.”

Accessible housing – Ontario housing law basics

23 Apr 2021 Laws in Ontario that protect tenant accessibility rights, protections under the Human Rights Code, landlord responsibilities and where to find support if your landlord is not accommodating your disability.

Maintenance – Ontario housing law basics

31 Mar 2021 How to handle maintenance concerns that a landlord in Ontario is not addressing, including their responsibilities to maintain your unit in a good state of repair.

Pest issues – Ontario housing law basics:

31 Mar 2021 Landlord and tenant responsibilities in Ontario, and how to handle conflict and disability-related concerns as they pertain to pest infestations.

Air conditioning – Ontario housing law basics

5 Jul 2023 Housing laws, rules and landlord responsibilities as they relate to air conditioning in rental housing in Ontario.

Smoking and second-hand smoke – Ontario housing law basics

15 Nov 2022 Rules around smoking if you are a smoker, or if you are a non-smoker worried about second-hand smoke.

Students and housing – Ontario housing law basics

3 Aug 2021 Legal protections for students in Ontario in on-campus housing, subletting, issues with roommates, landlord rules about guests and parties, requests for a guarantor and terminating a lease early.

Trouble finding housing – Ontario housing law basics

16 Apr 2021 What renters in Ontario can do when they are having difficulties finding housing due to their income status, accessibility needs, discrimination or having a criminal record.

COVID-19 and housing – Ontario housing law basics

5 Mar 2021 Tenants’ rights during the pandemic, resources to avoid eviction and mental health support.

While financially supported by The Law Foundation of Ontario, the Canadian Centre for Housing Rights is solely responsible for all content on this page.

Get the latest updates about the right to housing in Canada

• 50 Areas of Law
• Legal Answers
• Free Legal Documents
• Find a Lawyer, Paralegal, Service Professional
• Hot in Today’s News
• Flyers Help-Line Our Book Link to Legal Line
• Join our Experts
• Special Thanks
• Events + Fun Stuff
• Board of Advisors
• 8,000 Partners

• 2,500 Legal Answers
• 150 Legal Documents

99,178,339 enquiries answered

Landlord and tenant, general information, different laws for residential and commercial tenants, residential landlords and tenants, how can a landlord evaluate potential tenants, credit checks on residential applicants, residential leases, leases and month-to-month tenancies, tenants living with children, do tenants have rights if they only rent a room, tenants' rights if care services are provided, does a tenant have the right to keep pets, when can the landlord enter, who can change the locks, rights and obligations for repairs, subletting or assigning a lease, rent increases and maximum rent, rent, security deposits and interest, tenants' rights and responsibilities when moving out, rights and obligations of landlords, tenants' associations, rights and obligations of roommates, short-term rentals and airbnbs, rental deposit alternatives, rental deposit alternatives: faqs, residential eviction procedures, when can a landlord evict a tenant, how does a landlord evict a tenant, what to do if your landlord wants to evict you, how do you fight an eviction order, what happens to a tenant's property after eviction, how can landlords collect arrears of rent, skip tracing to find tenants who owe rent, how do you collect unpaid rent from former tenants, can you hire a security guard to remove a tenant from your property, commercial landlords and tenants, what law applies to commercial tenancies, rent increases, eviction of commercial tenants, what are a landlord's options if a tenant is in arrears, breaching a commercial lease, background checks on potential commercial tenants.

Home Legal Answers Landlord and Tenant Residential Landlords and Tenants Subletting or assigning a lease

A tenant with a lease is responsible for paying the rent up-to the end of the lease. Tenants who want to move out before the end of the lease, normally have the option to sublet or assign their unit, which means the new tenant will be responsible to pay rent for the remaining months of the lease. If you are having trouble with your tenant or your landlord and would like help, ask a lawyer now.

Subletting rules

If the tenant only wants to move out temporarily they can arrange to sublet their unit. Subletting occurs when a tenant rents out their unit to another person, called a subtenant, for a period that is less than the length of the lease. If a tenant rents on a month-to-month basis, they can only sublet the unit for less than one month and not for any longer period, or the tenant and the subtenant may lose their rights to the unit. With a sublet, the original tenant is responsible for all the terms under the lease and must collect the rent from the subtenant, and ensure it is paid to the landlord.

If a tenant wants to sublet their unit, they require the landlord’s written approval. Landlords are not allowed to unreasonably refuse a request for a sublet. This means that if a landlord decides to refuse a subtenant, he or she must have a good reason for doing so. Further, if the landlord refuses to allow the tenant to sublet the unit, or does not reply to the request within seven days, the tenant can apply to the Landlord and Tenant Board to determine if the sublease should be allowed.

Assigning a lease: transferring it to someone new

If a tenant wants to move out before the lease expires and does not plan to return, he or she can assign the lease to another person, who will then become the tenant. Assigning a lease transfers all the tenant’s rights and obligations to another person. The new tenant, called the assignee, will be required to pay the same rent that the original tenant was paying, and the terms of the original lease will apply.

If a tenant wants to assign a lease, he or she is first required to make a written request for the landlord’s approval. As with a sublet, the landlord cannot unreasonably refuse consent to an assignment. If the landlord refuses or does not reply within seven days of the tenant’s request, the tenant has two choices: end the lease or apply to the Board to approve the assignment. If the tenants want to end the lease, they have 30 days from the day the assignment request was made to give notice to the landlord. The notice must be 30 days before the tenant will move, which is normally the last day of the month.

Subletting or assigning a lease without the landlord’s permission

If a tenant sublets or assigns their unit without first getting consent from the landlord, it is considered an unauthorized assignment or sublet. When this happens, a landlord can file an application with the Board to evict both the tenant and the unauthorized occupant. However, if the landlord fails to file the application within 60 days of discovering the unauthorized occupant, the unauthorized occupant will become a tenant.

To apply to the Board to have a sublet or assignment approved, tenants must submit the appropriate form together with a small application fee. A copy of these forms must then be delivered to the landlord. To obtain forms or for additional information on sublets and assignments, visit the Landlord and Tenant Board  website.

Help for Tenants

A criminal record  will affect your ability to be approved for a residential lease. To erase your criminal record, learn more at Pardon Partners. It’s easier than you think.

If you are a Tenant , you can add your monthly rent payment to your credit report using FrontLobby. This can:

• Contribute to improving your credit score (Renters have reported 33pts to 84pts jumps)
• Help establish a positive credit history with a new rent tradeline
• Improve your access to credit related rewards (better bank loans, credit cards, mortgage rates)

Help for Landlords & Property Managers

For legal advice and assistance with a residential tenancy and applications to the Landlord and Tenant Board, contact our preferred Landlord and Tenant experts Nicola (Nick) Giannantonio Legal Services .

If you are a Landlord or Property Manager , you can report rent payments to Credit Bureaus and screen Tenants using FrontLobby. This can:

• Attract financially responsible applicants interested in building credit with their rent
• Decrease rent delinquencies (Landlords have reported 92% reductions) and recover unpaid rent
• Reduce Tenant turnover and improve monthly cash flow

Get legal help

If you are having trouble with your tenant or your landlord and would like help, ask a lawyer now.

ASK an Expert

If you are a landlord or a tenant, and are considering hiring an Agent, complete the Form below for a Free Consultation.

Which applies to you *

Select as many as apply

You now have 4 options:

• More answers about Landlord and Tenant
• Master List: 2,500 Legal Answers
• ASK an Expert, submit your question
• Government Links

Was your question answered?

What information would you like to see added?

Submit an Edit Request

Request permission for your organization to copy information from this website.

Page loaded. Thank you

Assignment of Lease Agreement Ontario: Legal Process & Requirements

The ins and outs of assignment of lease agreement in ontario.

As a law enthusiast, there`s something fascinating about the intricacies of lease agreements. Assignment of Lease Agreement Ontario, particular, topic piqued interest quite time. Delve details explore complexities subject.

Understanding Assignment of Lease Agreement

In the realm of real estate, a lease agreement plays a crucial role in determining the rights and responsibilities of both landlords and tenants. In the context of Ontario, the assignment of lease agreement refers to the transfer of a tenant`s rights and obligations under the lease to a new tenant.

When it comes to assigning a lease agreement in Ontario, there are specific legal requirements and considerations that must be taken into account. Take closer look key points:

Case Studies and Statistics

To gain deeper understanding topic, examine real-life Case Studies and Statistics related assignment lease agreements Ontario:

According to a study conducted by the Ontario Landlord and Tenant Board, approximately 20% of lease assignments result in disputes between the original and new tenants.

In a notable case in Ontario, a landlord refused to consent to an assignment of lease, leading to a legal battle that lasted over a year and resulted in significant financial implications for all parties involved.

Expert Insights

I had the opportunity to speak with a seasoned real estate lawyer who provided valuable insights into the assignment of lease agreements in Ontario. According to the expert, the key to a successful lease assignment lies in thorough due diligence and clear communication between all parties.

“From a legal standpoint, it`s crucial for tenants to fully understand their rights and obligations before seeking to assign a lease,” the lawyer emphasized. “Likewise, landlords must approach lease assignments with caution and ensure that the process complies with the legal framework.”

Final Thoughts

Exploring nuances Assignment of Lease Agreement Ontario truly enriching experience. From navigating legal requirements to understanding real-world implications, it`s evident that this topic carries significant weight in the realm of real estate law.

As I continue my journey in the field of law, I look forward to delving deeper into complex topics such as this, gaining a deeper understanding of the legal intricacies that shape our society.

Top 10 Legal Questions about Assignment of Lease Agreement in Ontario

Assignment of Lease Agreement Ontario

This Assignment of Lease Agreement (“Agreement”) is entered into on this [Date] by and between the Assignor and the Assignee, collectively referred to as the “Parties.”

Recent Posts

• Trading Name vs Business Name Singapore: Key Differences Explained
• Letter of Credit Governing Law: Understanding Legal Requirements
• Share Purchase Agreement Definition: What You Need to Know
• Kerala Service Rules Malayalam: Comprehensive Guide and Updates
• Void Contract Examples: Understanding the Legal Implications

Recent Comments

• December 2023
• November 2023
• October 2023
• September 2023
• August 2023
• February 2023
• January 2023
• December 2022
• November 2022
• October 2022
• September 2022
• August 2022
• February 2022
• January 2022
• December 2021
• No categories

Previous Post Understanding the 1965 Indian Welfare Agreement: A Legal Analysis

Next post bennett law firm: experienced legal representation for your case.

Comments are closed.

Privacy Overview

Return to First Part of Chapter 3. Landlords, Tenants and Their Legal Manifestations (a) Overview Many residential L&T relationships are between people ("natural persons") who are the owners of the rented premises, and other people who rent from them and live in them. In most cases the parties will have no doubt about who they are in the relationship. Of course, sometimes people die or otherwise transfer (intentionally or otherwise) their legal interest in the relationship, thus creating any of a range of landlord or tenant "varieties" explained in this section. These can include [Act s.2(1)]: heirs assigns personal representatives The special situation of a spouse after the tenant has died or abandoned rented premises is discussed below in s.4: "Spousal Assumption of Tenancy on Death or Abandonment". As well, while all residential tenants and most landlords are "natural persons" (ie. human beings) to begin with - that isn't always the case. The RTA recognizes this by including a range of possible legal entities within the definition of "person" as it is used in the legislation: Act s.2(1) In this Act, "person", or any expression referring to a person, means an individual, sole proprietorship, partnership, limited partnership, trust or body corporate, or an individual in his or her capacity as a trustee, executor, administrator or other legal representative;

Note: Situations where a tenant transfers their possessory rights are dealt with in s.5: "Subletting, Assignments and Similar Arrangements", below. Situations were a spouse survives a deceased tenant and wants to retain possession are dealt with in s.4: "Spousal Assumption of Tenancy on Death or Abandonment", below.

Act s.2(1) "landlord" includes, (a) the owner of a rental unit or any other person who permits occupancy of a rental unit, other than a tenant who occupies a rental unit in a residential complex and who permits another person to also occupy the unit or any part of the unit, (b) the heirs, assigns, personal representatives and successors in title of a person referred to in clause (a), and (c) a person, other than a tenant occupying a rental unit in a residential complex, who is entitled to possession of the residential complex and who attempts to enforce any of the rights of a landlord under a tenancy agreement or this Act, including the right to collect rent;

Casenote: In The Law Society of Upper Canada v. Chiarelli (Ont CA, 2015) the court held that someone acting as a representative of a landlord, without being licensed to do so and not falling under any Law Society provisions which exempted them from the requirement of paralegal licensing, did not fall under the RTA s.2(1) definition of landlord. Further, such representation did not render the agent a landord under any of the phrasings of the definition of "landlord" contained in Act s.2(1)]: "any other person who permits occupancy of a rental unit", a "personal representative" of "any other person who permits occupancy of a rental unit", or one "who attempts to enforce any of the rights of a landlord".

Act s.2(1) In this Act, "tenant" includes a person who pays rent in return for the right to occupy a rental unit and includes the tenant's heirs, assigns and personal representatives, but "tenant" does not include a person who has the right to occupy a rental unit by virtue of being, (a) a co-owner of the residential complex in which the rental unit is located, or (b) a shareholder of a corporation that owns the residential complex;

A. a person to whom the tenant is married (which now includes same-sex spouses) in Ontario; B. a person with whom the tenant lives in a "conjugal relationship" outside of marriage if any of the following conditions are also met: - they have co-habited for a least a year; - together they are the parents of a child; or - have entered into a cohabitation agreement under s.53 of the Family Law Act. These are agreements between unmarried couples regarding property, spousal and child support, and related matters.

"landlord" includes, (a) the owner of a rental unit or any other person who permits occupancy of a rental unit, other than [my emphasis] a tenant who occupies a rental unit in a residential complex and who permits another person to also occupy the unit or any part of the unit,

Note: This conclusion is based on a 'tracing back' of several cross-referring provisions as follows: Act s.99 allows s.87 arrears application for such chief tenant applications, s.87 adopts the s.82 tenant rights defences in non-payment of rent applications, which opens the door for the sub-tenant to argue s.29 non-repair issues in defence of the arrears claim (only, not the termination or eviction claim).

Interpretation Note: The provision [Act s.95] governing the situation where the landlord refuses a request to consent to assignment to a specific individual are confusing and ambiguous. They can be read as providing the tenant with only the remedy of the Board application discussed in s.5(e) below - or as allowing both that application and the tenant's right to early termination of the tenancy as is set out for other refusals of consent or ignoring of the request. The version set out immediately above is, in my opinion, the best legal interpretation of the applicable Act s.95 provisions.

Act s.2(1) In this Act, "rental unit" means any living accommodation used or intended for use as rented residential premises, and "rental unit" includes, (a) a site for a mobile home or site on which there is a land lease home used or intended for use as rented residential premises, and (b) a room in a boarding house, rooming house or lodging house and a unit in a care home;

ASSIGNING & SUBLETTING RENTAL UNITS

There are times when a tenant may need to move out of their home, either temporarily or permanently before the end of their lease.  In this situation, a tenant may want someone else to take over their lease, either temporarily or permanently.

Permanently Moving Out (Assignment of the Rental Unit):

If the tenant wants someone else to take over their lease permanently, they may consider assigning their rental unit to someone else.  If they have someone in mind whom they will assign their lease to, that is referred to as a “specific request” and the person who will be taking over the rental unit is referred to as “the potential assignee”.  If the tenant does not have anyone particular in mind, it is referred to as a “general request”. The tenant may assign their rental unit to another person if they obtain the landlord’s consent.

Whether the request to assign the rental unit is a general request or a specific request, the landlord may either consent to the assignment of the rental unit or they may refuse to consent to the assignment of the rental unit.  However, in the case of a “specific request”, the landlord may also agree to the assignment of the rental unit to the potential assignee, or they may consent to the assignment of the rental unit but may refuse to consent to the assignment to the specific assignee.

While the landlord may or may not consent to the assignment (either generally or to a specific person), the landlord may not arbitrarily or unreasonably refuse to consent to the assignment.

If the tenant asks the landlord to consent to the assignment of the rental unit and the landlord either refuses to consent to the assignment or does not respond (one way or the other) within seven days after the request is made, the tenant may give the landlord a notice of termination of the tenancy within 30 days after the date the request is made.

Consequences of Assignment:

If the rental unit is assigned to another person, the terms of the current tenancy agreement continue, with only the tenant changing (there is no new rental agreement); therefore, the landlord cannot increase the rent.  The assignee permanently takes over the tenancy agreement (this person is now the “assignee”), and the former tenant has no right to return later and move back into the rental unit.  

The former tenant remains responsible to the landlord for their responsibilities only for the period prior to the assignment, and the assignee is responsible to the landlord for the assignee’s responsibilities after the date of the assignment.  Furthermore, the assignee may enforce any of their rights and any of the landlord’s obligations either under the tenancy agreement or under the Residential Tenancy Act, as long as the obligation relates to the period after the assignment.

The landlord remains responsible to the former tenant for any of the landlord’s obligations under the tenancy agreement or under the Residential Tenancy Act, for the period before the assignment. The landlord also becomes responsible to the assignee for any of the landlord’s obligation under the tenancy agreement or under the Residential Tenancy Act for the period after the assignment.

Temporarily Moving Out (Subletting the Rental Unit):

If the tenant wants someone else to take over their lease temporarily, and the tenant plans on returning to live in the rental unit prior to the end of the tenancy agreement, they would need to sublet their rental unit to someone else. The tenant may sublet their rental unit to another person if they obtain the landlord’s consent.

As is the situation with assigning a rental unit, a landlord may not arbitrarily or unreasonably refuse to consent to the subletting of a rental unit.

Consequences of Subletting:

If a tenant sublets a rental unit to another person (referred to as the “subtenant”), the subtenant rents the rental unit for a period no longer than the term of the original lease. It is the original tenant (not the subtenant) who remains entitled to the benefits, and also remains responsible for the breaches of the tenant’s obligations under the tenancy agreement or under the Residential Tenancy Act. The subtenant is entitled to the benefits under the subletting agreement or under the Residential Tenancy Act, and is responsible for their obligations under the subletting agreement or under the Residential Tenancy Act. In this scenario, the original tenant becomes the subtenant’s landlord while the original tenant remains the landlord’s tenant.  Thus, there really is no agreement between the subtenant and the landlord.  The original landlord/tenant relationship remains.  The tenant is still responsible for all of their obligations under the tenancy agreement – including paying the rent.

It is important to note that the subtenancy is secondary to the original tenancy.  If, the original tenancy is terminated, the subtenancy will also be terminated.

If a tenant is renting a home and wants to turn over the rental unit to someone else either temporarily or permanently, they can do so, if they obtain the landlord’s consent. The tenant can either assign the rental unit to another person, (an assignee), in which case the tenant moves out of the rental unit permanently, and the assignee takes over all of the obligations and is entitled to all of the benefits under the tenancy agreement.  The tenancy agreement continues with the main difference that the agreement is now between the landlord and the assignee.  

If the tenant only plans on moving out for a temporary period and plans to return to the rental unit prior to the end of the tenancy agreement, with the landlord’s consent, the tenant can sublet the rental unit to another person (subtenant).  The rental agreement remains unchanged; the tenant remains responsible to the landlord for all of the tenant’s obligations and the landlord remains responsible to the tenant for all of the landlord’s obligations.

In either case, the landlord cannot arbitrarily or unreasonable deny consent; otherwise, the tenant can give a notice of termination of the tenancy within 30 days after the request is made.

Subleases and assignments  are a common legal issue faced by Landlords and Tenants alike. It is important to always consult with a lawyer when you are unsure.

Call the Real Estate Law Experts at Frank Feldman Law Today!

One thought on “ ASSIGNING & SUBLETTING RENTAL UNITS ”

Hey there! I just want to offer you a huge thumbs up for your excellent info you have here on this post. Ill be coming back to your blog for more soon.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Notify me of follow-up comments by email.

Notify me of new posts by email.

Can I Terminate a Residential Tenancy Early in Ontario as a Tenant?

• May 30, 2024

Terminating a residential tenancy early in Ontario can be a complex process that involves understanding your legal rights and obligations. As a tenant, there are specific circumstances under which you can end your lease early without facing penalties. This blog will explore those circumstances and provide guidance on how to proceed.

Grounds for Early Termination by the Tenant

• Negotiation: The simplest way to terminate a tenancy early is by mutual agreement with your landlord. If both parties agree, the terms of the termination can be set out in writing to avoid future disputes.
• Written Agreement: Ensure you get a written agreement signed by both parties that outlines the terms and conditions of the early termination, including any financial settlements.
• Assignment: You can transfer your lease to another person (assignee) with the landlord’s consent. The assignee takes over all the terms of your lease, and you are released from your obligations.
• Subletting: You can sublet the unit to another person (subtenant) with the landlord’s consent. You remain responsible for the lease, and the subtenant pays rent to you.
• Request to Assign/Sublet: Provide a written request to your landlord to assign or sublet the lease. The landlord cannot unreasonably refuse but can impose conditions. Use the Assignment Agreement (Form N11) or a Sublet Agreement.
• Repair Issues: If the rental unit is in a state of disrepair or is unsafe, you may have grounds to terminate the tenancy. Document the issues and notify your landlord in writing.
• Application to the LTB: If the landlord fails to make necessary repairs, you can apply to the Landlord and Tenant Board (LTB) for an order to terminate the tenancy due to the unit being uninhabitable.
• Special Provision: Ontario law allows tenants experiencing domestic violence or abuse to terminate their lease early. This is to ensure their safety and well-being.
• Notice of Termination: Provide the landlord with a Notice to End your Tenancy Early (Form N15) along with a copy of a restraining order or a signed statement from a professional (e.g., police officer, doctor, social worker).
• Transfer Clause: Check your lease for a clause that allows early termination due to job relocation. If such a clause exists, follow the specified procedure.
• Notice: Provide your landlord with written notice and documentation of the job transfer if the clause applies.

Steps to Terminate a Tenancy Early

• Lease Terms: Review the lease agreement to understand the terms and conditions related to early termination, including any penalties or notice requirements.
• Written Notice: Provide your landlord with written notice of your intention to terminate the tenancy. The notice period is typically 60 days, but it may vary based on the reason for termination and the lease terms.
• Financial Penalties: Be aware that early termination may involve financial penalties, such as paying rent until a new tenant is found or covering advertising costs to find a new tenant.
• Security Deposit: Discuss the return of your security deposit and any potential deductions for damages or unpaid rent.
• Written Communication: Keep copies of all written communication with your landlord, including notice of termination, requests for repairs, and any agreements made.
• Condition of Unit: Document the condition of the rental unit when you move out, including taking photos, to protect yourself against unjust damage claims.
• Legal Counsel: If you encounter resistance or disputes from your landlord, consider seeking legal advice from a lawyer who specializes in landlord-tenant law. They can help you understand your rights and navigate the legal process.

Why Choose Falcon Law PC for Legal Assistance

At Falcon Law PC, our team of experienced lawyers specializes in landlord-tenant law. We provide comprehensive legal services to help tenants understand their rights and navigate the process of terminating a tenancy early.

Contact Falcon Law PC for Assistance

For expert legal assistance with terminating a residential tenancy early in Ontario, contact Falcon Law PC. Our knowledgeable lawyers are here to guide you through every step of the process, ensuring your rights are protected.

Contact Information:

• Phone: 1-877-892-7778
• Email: [email protected]

For inquiries or further assistance, please contact us using the information below.

Talk to us now at

• [email protected]

Book a consultation fast and easy

Recent posts, winnipeg charity lawyer: comprehensive legal services for charitable organizations, winnipeg non-profit lawyer: comprehensive legal guidance for charitable and non-profit organizations.

Winnipeg Contract Review Lawyer: Ensuring Legal Clarity and Protection

Winnipeg franchise lawyer: comprehensive legal support for franchisors and franchisees, winnipeg corporate lawyer: comprehensive legal services for businesses, winnipeg startup business lawyer: essential legal guidance for new ventures.

This website uses cookies to various ends, as detailed in our Privacy Policy . You may accept all these cookies or choose only those categories of cookies that are acceptable to you.

Manage your cookies

Cookies are saved on your device to ensure proper operation and security of the website, help statistical analysis of its usage, improve its functionality, or record navigational choices you make. Further details can be found in the cookies section of CanLII's Privacy Policy.

A few cookies are strictly necessary to use CanLII and are always active. Cookies that are used to measure performance or improve functionality can be enabled using the buttons below.

Residential Tenancies Act, 2006, SO 2006, c 17

• Regulations (0)
• Amending (13)
• Cited by 

Postsecondary students in Canada face a tight housing market. Some developers see that as an opportunity

Common room in l'Ardoise, a 205-apartment building in Québec City that opened in 2023. All Utile buildings have one common room where students can go to study or socialize. Utile

About a year ago, Utile, a Montreal-based non-profit that develops and operates student rental housing, began leasing up its most recent project – a 205-bed apartment dubbed l’Ardoise (The Slate), just a few minutes’ walk from Quebec City’s Laval University campus.

It was an otherwise ordinary event, but for the fact that the seven-storey building was completed in just two years. “A speedy delivery,” muses Utile CEO Laurent Levesque, explaining that Utile was able to seize an opportunity to acquire a fully permitted development site from a condo builder that had changed its mind. “We were able to get to concrete very, very quickly.”

Founded about a decade ago as a student housing service, Utile has emerged as a major player in the so-called “purpose-built student accommodation” (PBSA) market, having completed four projects with 1,500 units in the past four years. It has another 600 units in the pipeline, and the next one breaks ground later this fall, Mr. Levesque says. The entire portfolio is now valued at more than $500-million.

A group of idealistic graduate students established Utile in 2012, and the non-profit made its first big breakthrough a few years later by persuading the Concordia University students’ association to commit $1.8 -million in equity to its first development project, an 80-unit building in Montreal. The cash, equivalent to about 10 per cent of the total cost, was sufficient to kick-start the kind of initiative not normally associated with student associations.

Today, Mr. Levesque says, Utile has plenty of momentum, but the appetite for its non-profit units – which typically rent for about 10 to 30 per cent below market rents – far exceeds the organization’s portfolio. “The demand for this category and this price point is so massive,” he admits. “We shut down applications after we’ve had 10 applicants for every available unit.” The situation, Mr. Levesque adds, is “terrible.” “It’s one of the reasons we’ve accelerated our growth.”

Utile's latest project, named La Canopée, in Trois-Rivières. It contains 179 apartments and its first tenants moved in in June this year. Studios are rented at $629 per month, services included (electricity, hot water, heating, internet, fridge and oven). Utile

Canada’s student housing market represents one of the dodgiest aspects of the national housing affordability crisis. In many big cities, postsecondary students tend to find housing in student ghettos and overcrowded condos or poorly maintained rooming houses, paying exploitative rents for bedrooms that turn over at the end of every academic year. The influx of international students in recent years made a tight market that much more precarious.

“Students themselves can often live in very dangerous, precarious housing situations because they get taken advantage of,” says Mark Richardson, technical lead for Housing Now, a housing advocacy group in Toronto. “We have students living in their vehicles in Canada, depending on where you are. We certainly have students who are being put into basements. You often find that a three-bedroom apartment might have five or six students living in it.”

While there’s nothing new about rundown student housing – just ask any Queen’s University graduate – the ratcheting up of rents in the past few years has not only shone a spotlight on this grim corner of the market but also drawn attention to Canada’s curiously limited PBSA sector.

“We’re quite underdeveloped,” says Ryan Tran , vice-president of CBRE Canada’s alternative assets group. He says there are currently enough purpose-built beds – about 155,000 in all – to house about 10 per cent of postsecondary students in Canada. That ratio is “very, very low compared to other countries,” Mr. Tran adds. “In the U.K., you have that number upwards of 60 per cent. It shows how far behind we are.”

In fact, according to CBRE’s research, student housing is a fast-growing asset class in many countries, thanks to nearly 100-per-cent occupancy rates, high rental rates and the mandatory bundling of meal plans. The industry has also attracted unwelcome criticism in recent years for both its aggressive pricing strategies and some notoriously bunkerlike projects filled with windowless bedrooms.

In Canada in recent years, some builders and REITs have stepped into the breach, either by acquiring and transforming hotels or developing their own projects, such as the four-phase, 910-unit Quad complex at York University, the first two of which are now open. Forum REIIF, a Toronto asset manager founded in 1996 by real estate veteran Richard Abboud , acquired all four projects in 2021 and 2022 as part of its growing portfolio of PBSAs.

The business models vary significantly, and include various forms of public-private partnerships. Some are built on university or college campus lands (e.g., University of Guelph) while others are situated off-site but nearby. Most offer amenities – gyms, meal plans, retail – and tend to rent suites, with four or five bedrooms sharing common areas, like kitchens.

Utile, says Mr. Levesque, has taken a somewhat different approach, eschewing services in order to keep its rents low, and also in recognition of the fact that tuition fees typically include access to high-quality sports facilities.

The trick with PBSA projects is finding developable land near campuses. Broker Derek Lobo, CEO of SVN Rock Advisors, which represents student housing providers, says location is the “No. 1 factor” in determining viability.

Transit access, walkability and safety are key considerations. Yet every developer is looking for those qualities, so in large markets, real estate costs can be onerous. “In all our projects so far, we’ve bought the land from private owners,” says Mr. Levesque. “But land is expensive and it’s even more challenging to find free land in big markets.”

While the handful of developers building PBSAs in Canada seem bullish about the future for this asset class, the sector’s growth isn’t as watertight as the high-level trends might indicate. In 2022, Toronto Metropolitan University, for instance, cancelled a 600-bed residence project – a move that Mr. Richardson describes as “a public policy failure.” (TMU will still build classrooms, offices and research facilities on the site – a parking lot at Jarvis and Yonge streets – but the plans for the residence component were iced.)

The University of Toronto, meanwhile, has had a big housing/office project – known as The Gateway, to be situated at Bloor Street and Spadina Avenue and developed by Westbank Corp. – on its books for years, with no evidence of movement to date. “It’s still in the works,” says Mr. Tran.

It remains to be seen how the federal government’s move to limit international students will impact investment in this sector, although the Liberals have tweaked Ottawa’s big housing investment fund to allow funds to flow into student housing. Meanwhile, the Ontario government, in one of its latest set of land use planning reforms, has exempted postsecondary institutions from the development application process – a move that could also accelerate the construction of new residences.

But for Utile’s Mr. Levesque, the point is not to create attractive new investment vehicles for asset managers but rather to add some sanity and quality of life to the student housing world by adding non-profit models to the mix. He says that while Utile hasn’t yet ventured beyond Quebec’s borders, the group has fielded inquiries from across the country.

“What we see when we look at students, and the data on students’ housing situation, is that they are on the front lines of the housing crisis,” says Mr. Levesque. “If we want to secure Canada’s ability to educate its population and house postsecondary students for future generations, we need to have a sufficient stock of different asset classes and different types of offerings for students. But we also need to have at least a portion of that housing stock that’s affordable and remains affordable.”

Major players in the PBSA sector

While hundreds of small players operate in the private student housing market, including those who lease out carved-up and permanently rented houses in student ghettos, there are only a handful of large firms, most of whom have been in this market for under a decade. Some build PBSAs from scratch while others acquire and convert hotels or other multi-unit sites.

The Marq (Toronto): Thirteen properties in London, Ont., Waterloo, Ont., Calgary and Montreal, with furnished rooms, shared amenities. Operator for Centurion Asset Management , which is a diversified real estate and financing REIT.

Campus Suites (Toronto): The company claims to operate 17,000 units of student housing across North America, including properties owned by Forum REIIF. Campus Suites also provides development consulting services, commercial and retail leasing and property management.

Forum REIIF (Toronto): Seven PBSA projects, including the sprawling four-phase Quad residences at York University, comprising almost 2,500 beds. Forum builds and buys other multiunit rentals but the PBSAs account for about two-thirds of the value of the firm’s $630-million portfolio .

Utile (Montreal): Thirteen properties developed and operated on a non-profit model, almost 2,100 beds; rentals only to students, but no amenities, services, et cetera.

Knightstone Capital Management (Toronto): Six properties in Ontario with more than 5,100 beds, operated either by universities or outsourced to subsidiary Canadian Campus Communities. Some with dining hall service or ground floor retail.

Alignvest (Toronto): Seventeen properties with more than 6,600 beds in Ontario, Quebec and Alberta, mainly off-campus but typically within a 10- to 15-minute walk and affiliated with specific postsecondary institutions; on-site amenities, parking, suites with up to five bedrooms. Alignvest’s student housing REIT last November acquired , with a financing partner, the historic Stewart Building, on College Street west of University, and has plans to redevelop the site with student housing.

Campus Developments (Toronto): Two projects serving Carleton University, with a total of 827 units and 1,410 beds (phase one completed in 2021, phase two, 2026); fully furnished, on-site amenity and commercial spaces.

Report an editorial error

Report a technical issue

Editorial code of conduct

Follow related authors and topics

• Real Estate and Construction Industry

Authors and topics you follow will be added to your personal news feed in Following .

Interact with The Globe

Ontario.ca needs JavaScript to function properly and provide you with a fast, stable experience.

To have a better experience, you need to:

• Go to your browser's settings
• Enable JavaScript

Ontario's context

On this page skip this page navigation, ontario’s housing context, challenges and needs.

The pandemic has exposed some weaknesses in the province’s social safeguards, particularly in its attempt to keep people safe in shelters and provide adequate housing for the most vulnerable people.

While most Ontario households live in acceptable housing—housing which is affordable, does not require major repairs, and is not overcrowded—the proportion of people experiencing challenges accessing acceptable housing has grown over the past several years. Some of these issues predate the COVID-19 pandemic, and most critically, housing need is more prevalent amongst some of Ontario’s most vulnerable groups.

Housing challenges faced by Ontarians relate to affordability, supply, and support services including:

• affordability challenges, as house prices and rents have risen much faster than household incomes, creating a widening affordability gap
• insufficient supply, as substantial new rental construction is needed to keep up with rapid population growth and demand
• aging social and affordable housing stock, as a large proportion of the most affordable housing, especially rental and government-subsidized housing, is 40 years old or more and at risk of loss due to poor condition and expiring obligations to provide subsidized housing

In addition, Ontario has a very high level of housing need relative to the Canadian average (as measured through the CMHC indicator of core housing need).

The following sections discuss each challenge in detail:

Housing affordability

While the proportion of households experiencing suitability and adequacy issues has remained relatively stable over the past 10 years, the proportion of household who do not live in housing that is affordable has increased. Aside from the short pause caused by the pandemic, rents and house prices have increased rapidly over this period but incomes have not risen at the same rate.

In 2019, the year before the pandemic, owner incomes had risen 14.5%, while renter incomes had increased only 9.6%. While incomes have risen faster in the Toronto area, this area has also experienced higher price and rent growth than in most of the country. Even accounting for temporary supports, prices and rents have risen much faster than incomes.

Rental housing has traditionally provided the more affordable housing option in Ontario, especially in urban areas. However, affordability of rental housing has eroded as rent growth has remained high for the past decade and has accelerated in the past few years as unplanned population growth has occurred. While the last 2 years have seen record construction of purpose-built rental, this is a recent shift after 3 decades of very low rental construction, which has put additional pressure on existing supply.

The following chart shows year-over-year average resale price growth in Ontario for residential Multiple Listing Service ( MLS ) sales from 2014-2023:

Figure 1: MLS resale price growth from 2014-2023

Another source of reduced affordability is rising residential rents, particularly for purpose-built apartments as they tend to be somewhat more affordable than rates in other types of rental dwelling (such as condo rentals). The following chart shows year-over-year growth in average market rents for purpose-built apartments in Ontario from 2014-2023:

Figure 2: Annual rent growth for purpose-built apartments from 2014-2023

Housing supply

A key objective of the NHS programs is to increase the supply of affordable rental housing through the creation of new units and the preservation of existing units.

Need for creating new market rental housing

Rental housing construction in Ontario has lagged behind demand over the past 2 decades, contributing to tight market conditions and the need for more new rental supply, especially in the Toronto area. Since 2000, only 9.2% of all housing starts in Ontario have been purpose-built rentals, compared to 13.0% for the previous decade (1990-1999). There are signs this trend is improving, however, rental starts have increased each year for 10 successive years, and 2023 had the highest rental starts on record.

Condominium developments are still providing a large portion of the new rental supply. Since 2000, 33.9% of housing starts have been condominium units, and about one-third of condominium units are rented in major Ontario centres. These condominium units usually have higher average monthly rents, especially compared to older purpose-built rentals. In the Toronto area, condominium apartments have average monthly rents 49% higher than purpose-built apartments.

Through the NHS ’s Ontario Priorities Housing Initiative ( OPHI ), Service Managers and Indigenous Program Administrators have the flexibility to use program funding towards the creation of new affordable rental housing.

Need for creating new community housing

Before the launch of NHS programs in 2019, no new social housing had been constructed through federal or provincial social housing programs in Ontario since 1995, although some housing providers had created units that offer below market rents to households under affordable housing programs.

As community housing providers’ historical operating agreements expire, mortgages mature and buildings age, there is a risk of losing community stock as providers’ original obligations end and some providers’ financial sustainability is at risk.

Ontario’s Community Renewal Housing Strategy leverages the National Housing Strategy, specifically the Canada-Ontario Community Housing Initiative ( COCHI ), to prevent the loss of community housing stock and, over time, to grow the stock to help meet the demand for subsidized housing.

As of December 2022, Service Managers reported the number of unique households on Centralized Waitlists for social housing (rent-geared-to-income ( RGI ) assistance) in Ontario to be estimated to be 176,804. In that same year, 16,449 households were able to move from the waitlists into housing (both RGI and portable housing benefits).

Need for preserving market rental housing

Most of Ontario’s purpose-built rental supply is now 40 years old or more—81% of all purpose-built units were built in 1980 or earlier. This aging stock is a much more affordable segment of the market rental sector, with a noticeable jump in average rent for units built since 2000. The next 2 charts provide evidence of these developments:

The following chart shows the proportion of purpose-built rental units in Ontario, grouped by year of construction footnote 1 [1] :

• pre-1961: 22%
• 1961-1970: 31%
• 1971-1980: 27%
• 1981-1990: 7%
• 1991-2000: 2%
• 2001-2010: 3%
• 2011-2020: 6%

Figure 3: Proportion of purpose-built rental units in Ontario, by year of construction, as of 2023

Figure 4 below shows average market rents for purpose-built rental units in Ontario, grouped by year of construction:

Figure 4: Average market rents, by year of construction, as of 2023

Need for preserving community housing

Many of the housing system’s older units are at risk of sitting vacant and unfit for occupancy due to poor condition and a growing backlog of repairs, especially in the community housing sector. While 5.6% of Ontario households report that their dwelling required major repairs in 2021, this figure was 8.3% for renter households (Statistics Canada, Census of Population 2021). These rates are significantly higher for units built in 1980 or earlier.

As part of the multi-year Community Housing Renewal Strategy, the province has introduced measures to incent community housing providers to stay in the system once their original obligations end. Ontario worked in partnership with the community housing sector to develop an improved regulatory environment for Service Managers and housing providers to deliver community housing, improve access to community housing, and grow supply by enabling new community housing providers to enter into the regulatory framework. (See Section C for further details on the new regulatory framework for community housing).

Supportive housing and homelessness

Access to appropriate and affordable housing is a challenge across the province, particularly for those who need ongoing supports to remain housed (such as those with mental health issues). In addition, the protracted economic recovery and high inflation have put more people at risk of homelessness (for example, the impact of sustained reductions in or loss of income and increase in rent arrears).

The COVID-19 pandemic increased pressure on Ontario’s homelessness sector which has not abated. Post-pandemic, the province has seen a significant rise in the number of individuals facing mental health and addictions challenges and increasing complexity in the supports needed. With rates of homelessness on the rise, there has been increasing demand on the emergency shelter system which is at maximum capacity.

Adding further pressure on the shelter and homelessness sector has been the significant increase in the number of individuals seeking asylum in Ontario. In the 2023 calendar year, over 76,000 asylum claimants arrived in Ontario, including those arriving from other provinces. Compared to approximately 26,500 in 2022, this was an increase of 187% in one year. The high level of arrivals is expected to grow by a further 24% in 2024, with the current estimated number of arrivals at over 94,000. Asylum claimants arriving in Ontario are experiencing significant challenges in securing appropriate housing and the shelter systems in many municipalities across the province are at, or over, capacity and cannot accommodate the influx.

Homelessness services in Ontario are funded through a combination of provincial, federal and municipal investments. The province has historically provided approximately 60% of the funding for homelessness programs (municipal 30%; federal 10%). Additional long-term investments are needed to increase supply to address long-term housing needs and to help prevent homelessness.

Providing support services to affordable and social housing tenants is an eligible funding activity under the NHS ’s Ontario Priorities Housing Initiative ( OPHI ). However, funding for these supports and services is restricted to a maximum of 20% of the cost match funding.

Housing need and impacts on vulnerable populations

Two different measures of poverty and housing need, core housing need ( CHN )   and the Low-Income Measure-After Tax ( LIM-AT ), suggest that more than 10% of Ontarians fall below the threshold for each measure, with about 639,805 households in CHN and 1.4 million people below the LIM-AT (Statistics Canada, Census of Population, 2021).

Households in core housing need

As of 2021, Ontario households experienced one of the highest rates of CHN among PTs , with 12.1% of all households in CHN . The most common reason for a household to be in CHN is affordability challenges. The rate of CHN has declined more than 2 full percentage points over the past 5 years (from 15.3% in 2016). This decrease in CHN is driven largely by improvements in household incomes.

Another way of looking at Ontario’s high rate of CHN is by considering the provincial share of all households in CHN across the nation. When assessed this way, 44% of all Canadian households in CHN reside in Ontario. This is by far the highest proportion in Canada (British Columbia is in second place with 18%).

The following chart compares the percentage of households in core housing need for Ontario and Canada from 2006–2021:

Figure 5: Percentage of households in core housing need ( CHN ) for Ontario and Canada, by census year

Core housing need by population

There are also differences in the prevalence of CHN across certain subsets of the population (such as seniors, Indigenous people) footnote 2 [2] .

Figure 6: Percentage of overall Ontario population in core housing need ( CHN ), including by seniors and Indigenous identity

In 2021, seniors had slightly elevated levels of CHN need overall (10.7%) compared to the overall Ontario population (9.3%). However, the percentage of seniors residing in unaffordable housing (costing 30% or more of total before-tax household income) was lower (18.4%) compared to the overall Ontario population (20%) (Source: Statistics Canada, Census of Population 2021).

As of 2022, approximately 75,335 seniors were living in rent-geared-to-income ( RGI ) social housing units, representing about 41% of all RGI social housing tenants, and approximately 75,234 seniors were on RGI wait lists. As this population continues to increase, more accessibility supports will be needed for seniors to age in place.

(Source: Service Manager Annual Information Return 2022)

Figure 7: Percentage of overall Ontario population in unaffordable housing including by seniors and Indigenous identity

Figure 8: Percentage of Ontario population in inadequate housing, including by seniors and Indigenous identity

Figure 9: Percentage of Ontario population in unsuitable housing, including by seniors and Indigenous identity

Indigenous households (off-reserve)

Individuals who identify as Indigenous living off-reserve experience higher rates of core housing need (11.3%) compared to the Ontario population overall (9.3%). These individuals experience more than twice the average rate of housing adequacy problems (14.4% vs. 5.6% overall) (Statistics Canada, Census of Population 2021). As of the 2021 Census, 16.9% of Indigenous individuals were in low income ( LIM-AT ), almost double the rate of low income for all Ontarians (Statistics Canada, Census of Population, 2021)

Proportion of Ontario’s population in low-income-after tax ( LIM-AT ) for select demographics

The chart below shows the proportion of Ontario’s population falling below the LIM-AT by demographic group for 2021 (latest year available):

Figure 10: Percentage of Population in Low-Income After-Tax ( LIM-AT )

Visible minorities

Visible minorities comprise 34% of Ontario’s population. One-eighth of visible minorities in Ontario (12.5% of the population) live below the low-income measure threshold.

Compared to men (9.7%), women in Ontario (10.7%) are slightly more likely to be below the low income ( LIM-AT ) threshold. One area of concern is lone-parent households. Women make up the vast majority of this group, which has a particular challenge of sufficient space (such as living in overcrowded housing). This is linked to the affordability challenges of single-income households.

Ontarians experiencing mental illness or substance dependence

While information on the housing situation of Ontarians experiencing mental illness or substance dependence is not available, these issues affect a large segment of the population. In 2022, 15.7% of Ontarians rated their perceived mental health as “fair” or “poor”, a substantial increase from just 2 years previous (10.7% in 2020). 11.8% reported a mood disorder (9.4% in 2020). 18.1% reported heavy drinking (15.0% in 2020; Statistics Canada, Canadian Community Health Survey 2022).

Mental health and substance dependence issues may contribute to difficulty accessing or retaining stable housing, and in some cases, households will require housing with supports.

Ontario’s housing and homelessness system and program delivery

Ontario’s housing and homelessness programs are delivered locally by provincial service-delivery partners, within a framework that is overseen by the province.

The Ontario government sets the overall vision and establishes the legislative and policy framework for housing and homelessness prevention initiatives through the Housing Services Act, 2011 . Within the framework, 47 local Service Managers ( SMs ) identify needs in their communities, develop 10-year local housing and homelessness plans and design and deliver services to people either directly or through delivery partners (such as housing providers). SMs (which consist of municipalities and District Social Services Administration Boards ( DSSABs ) that serve northern communities) integrate housing and homelessness planning and service delivery with other local activities. This approach allows them to address unique local circumstances, challenges and opportunities and helps ensure that the solutions they implement respond to the highest priority need.

Ontario also works in partnership with 2 Indigenous Program Administrators ( IPAs ) to deliver housing and homelessness services that best serve Indigenous peoples off-reserve. To do this, it engages with the IPAs on both systems planning and program design.

• footnote [1] Back to paragraph ^ Considering that individual households can be on multiple Service Manager waiting lists, this number represents an estimated unduplicated count of the number of households waiting for social housing across the province, which the ministry began collecting in 2020.
• footnote [2] Back to paragraph ^ Note that CHN data on seniors and Indigenous people are presented at the population level, rather than the household level, as above. Households may have a mix of individuals across these categories and therefore population-level measures may more clearly represent the actual prevalence for seniors and Indigenous people.