Subletting 101: What is it and how does it work?

Taking off for a month or even a year, but want to keep your place as a renter? Subletting can be a great option.  

Whether you’re off to study abroad, starting a new job in a different city, or planning a long vacation, subletting can help you keep your lease and save some money. But before you hand over your keys, it’s important to know the ins and outs of subletting.  

What is subletting?

Subletting is when you rent out your place to someone else for a while. You stay responsible for paying rent and taking care of the property, even though someone else, known as the subtenant or subletter, is living there.  

This is known as a complete sublet, which requires the landlord’s permission. This can be great for all parties involved: You cover your costs while you’re away, and the subtenant gets a furnished place to stay without signing a new lease. 

Other subletting options include partial sublets, where the main tenant rents out part of the property while still living there, and roommate sublets, where the main tenant rents out a room or shared space to another person.  

Both arrangements also require the landlord’s written consent, and the main tenant remains responsible for the entire lease and property. 

Is it a good idea to sublet?  

Complete subletting has its good and bad sides. Knowing these can help you decide. 

Pros of subletting 

• Save money: Subletting can help you cover rent and utility costs while you’re away, which can ease financial stress. 

• Keep your lease: You can keep your lease without breaking it, which is good for your rental history and makes it easier to return to your place later. 

• Flexibility: Subletting gives you the option to come back to your place after temporarily staying somewhere else without having to find a new rental. 

Cons of Subletting 

• Responsibility: You’re still responsible for the rent and any damages the subletter might cause. If they don’t pay or damage the property, it’s on you. 

• Trust issues: Finding a reliable subletter can be tough, and there’s always a risk they might not take care of your place properly. 

• Legal complications: Subletting can complicate your relationship with your landlord due to potential legal issues. Some leases have strict rules about subletting, and you may need written permission from your landlord. If you don’t follow the rules set by your lease, you could face legal problems. 

Are you legally allowed to sublet? 

First, check your lease. Some leases say you can’t sublet, while others allow it with certain rules. Your lease might have specific conditions, like not charging the subtenant more rent than you pay or making sure the sublet period is shorter than your lease.  

It’s important to know these terms to avoid problems. If you’re not sure, ask your landlord or property manager. 

Sometimes, landlords want a formal subletting agreement. This document explains the rules of the sublease and protects both sides. For example, it should include how much notice you need to give to end the sublease, rules about how long guests can stay, and payment details like the rent amount and due date. Having everything in writing helps avoid problems later. 

Is it legal to sublease or sublet my apartment without telling my landlord? 

In Canada, it is illegal to sublease or sublet your apartment without telling your landlord. For example, in Ontario, you can sublet with your landlord’s permission, and they can’t say no without a good reason.  

If you don’t get permission and sublet anyway, you could face harsh penalties, such as your subtenant being evicted, and you could also be evicted. Make sure you know the local rules to stay legal. 

Read more: What recourse does a landlord have if the tenant uses their home for illegal activity?   

What kind of coverage is better for subletting? 

Subletting introduces new risks, so it's worth considering an insurance upgrade. Most standard tenant insurance policies cover your personal belongings, liability, and extra living expenses if needed, but it does not extend to a subletter's possessions. 

If you decide on subletting your place for a longer period, you may consider increasing your liability coverage to protect against accidents or injuries that might happen during the sublet. 

Alternatively, you may encourage your subletter to get their own renter's insurance. This makes sure that both parties are protected in case of theft, damage, or other unforeseen events.  

Read next: Tenant insurance safeguards your stuff — and your peace of mind 

Other Considerations 

Apart from legal and financial aspects, there are other factors to keep in mind when subletting. 

How to set your sublet price? 

While there aren’t strict rules for subletting, it’s normal for subletters to ask for a lower rent, especially in a less competitive rental market. Charging 70% to 80% of your usual rent is typical, though you can try asking for the full amount. 

One way to determine a competitive rate is to research similar properties in your area. Consider factors like location and the duration of the sublease. 

Don’t forget to include utility costs if they’re separate from the rent. Clear communication and a written sublease agreement can help prevent any confusion.  

Where to find a trustworthy subletter? 

Finding a good subletter quickly can be tough, but here are some suggestions to advertise and find subletters:  

• Start by asking friends, family, or colleagues if they know anyone looking for a temporary place. 

• Your landlord or leasing office for subletting rules and potential renters.  

• Groups you belong to, like sports teams or alumni networks. 

• Online platforms like Craigslist and Kijiji , or on social media (just carefully vet your prospects)  

Be sure to screen potential subletters thoroughly. Conduct interviews, check references, and trust your instincts. 

Subletting can help you keep your lease while you’re not around. By knowing and understanding the rules, talking to your landlord, and setting clear terms, you can sublet your place confidently.