Your tenant just asked to sublet your townhouse for the last three months of their lease. Should you say yes? Can you say no? Here’s everything Calgary landlords need to know about subletting requests, your legal obligations, and how to protect your property.
Quick Landlord Subletting Checklist
- You must respond to subletting requests within 14 days (or it’s automatic approval)
- You can only refuse for valid reasons like bad credit or rental history
- Your tenant stays responsible for rent and damage even after subletting
- Get copies of the subletting agreement to know who’s living in your property
- Check if your insurance covers subletting situations
- Review condo bylaws if applicable—they might override tenant lease terms
What Is Subletting?
Subletting happens when your tenant rents out their rented space to someone else while keeping their name on your lease.
Your tenant stays responsible for everything—rent, damage, lease violations, maintenance. The new person (sublessee) pays rent to your tenant, not to you directly.
Most tenants sublet when they need to move before their lease ends or when they’ll be away for months but want to keep their place.
This isn’t just good for the tenant; it can be good for you, too. If the tenant didn’t sublet, they’d likely have to break the lease, and that would mean you’d have to find a new tenant to fill the sudden vacancy.
Alberta doesn’t have standard forms for subletting, so your tenant will need to create their own subletting agreement with the sublessee.
Is Subletting Legal in Alberta? Your Legal Obligations as a Landlord
Under Alberta’s Residential Tenancies Act, you can’t just say no to subletting requests. You have specific legal requirements.
You must respond within 14 days. If you don’t respond in time, the law considers it automatic approval. Don’t let this deadline slip by.
You can only refuse for valid reasons. Personal preference isn’t enough. Valid reasons to refuse a sublessee include:
- Poor credit history
- Bad references from previous landlords
- Criminal background that affects tenancy
- Too many people for the space
- Violates condo bylaws
Your refusal must be in writing. Explain your specific concerns. Vague reasons won’t hold up if disputed.
You can’t charge a fee for allowing subletting.
Subletting vs. Assignment: Know the Difference
Subletting is a common concept, but not as many people know about what’s referred to as “assignment.”
Don’t confuse these two situations:
Subletting: Your original tenant keeps responsibility. You still have the same tenant on paper.
Assignment: Your tenant permanently transfers the lease to someone new (with your written agreement). The new person becomes your direct tenant, and the original tenant is released from responsibility.
Protecting Your Property During Subletting
Your original tenant stays legally responsible, but you still want to protect your investment.
Request sublessee information. Ask for the same details you’d want when renting to any tenant—contact information, credit report, references, employment verification.
In addition, ask for the exact dates the sublet will last and how your original tenant can be contacted while they’re away, preferably with a mailing address.
Creating a subletting application form is a good idea to smooth the process. It gives your tenants a clear and easy way to request permission to sublet and makes sure you get all the information you need without having to chase down details.
Review the subletting agreement. Your tenant should create a written agreement with their sublessee. Ask for a copy so you know the terms.
Be consistent. Apply the same standards to all subletting requests to avoid discrimination accusations.
Document everything. Keep records of your approval, the sublessee’s information, and any communication about the arrangement.
Do a property inspection. Consider doing an inspection before the sublessee moves in and when they move out.
Subletting Insurance Considerations for Landlords
Call your insurance company when tenants sublet. Some policies require notification when occupancy changes.
Ask about:
- Whether subletting affects your coverage
- If you need additional protection
- Changes to liability coverage
- What happens if the sublessee causes damage
Don’t assume your policy automatically covers subletting situations.
And make sure your original tenant knows that subletting without notifying their renter’s insurance company could void their coverage. Their sublessee might also need their own coverage.
Condo Landlords: Check the Bylaws Before Subletting
Own a condo unit? The building bylaws might restrict or ban subletting entirely.
Many Calgary condo boards have strict rules about subletting. Even if you want to approve your tenant’s request, the condo board can override your decision.
Get a copy of current bylaws and check for:
- Subletting restrictions or bans
- Required approvals from the board
- Fees or deposits required
- Registration requirements
Breaking condo rules can result in fines for both you and your tenant.
Short-Term Subletting and Airbnb
If your tenant wants to sublet for less than 30 days or use Airbnb, different rules apply.
Calgary requires short-term rental operators to have:
- A business license from the city
- Tourism levy registration
- Compliance with zoning bylaws
Most standard residential leases prohibit short-term rentals. Check your lease terms and consider adding specific language about platforms like Airbnb.
Common Subletting Problems and How to Avoid Them
Problem: Tenant sublets without permission
- Solution (Pre-emptive): Include clear subletting clauses in your lease. Make the approval process simple so tenants don’t skip it.
- Solution (In action): If the tenant has already sublet without permission, you give the tenant and sublessee 14 days’ written notice that the unauthorized sublessee must leave.
- If the tenant has already moved out, the notice requirement shortens to 48 hours.
- If the sublessee doesn’t leave, you can evict the tenant and the sublessee.
Problem: Sublessee causes damage
- Solution: Remind your tenant they’re still responsible. Consider requiring an additional security deposit.
Problem: Sublessee doesn’t pay rent
- Solution: Your original tenant still owes rent. Make this clear upfront.
Problem: Too many people in the unit
- Solution: Set occupancy limits in your lease and subletting approval.
You (and your tenant) have the authority to evict a sublessee for any of the same reasons you would evict a tenant.
If problems come up that you can’t work out with your tenant, you can apply to have Alberta’s Residential Tenancy Dispute Resolution Service sort things out.
When You Should Say No to Subletting
You can refuse subletting requests, but only for valid reasons:
Financial concerns: Poor credit, insufficient income, history of unpaid rent or utilities.
Rental history problems: Evictions, property damage, complaints from previous landlords.
Occupancy issues: Too many people for the space size.
Legal restrictions: Condo bylaws, zoning restrictions, or other legal barriers.
Background concerns: Criminal history that affects tenancy safety.
Document your reasoning clearly. If the tenant disputes your decision, you’ll need to justify it.
What to Do When You Approve Subletting
Once you approve a subletting request:
Get everything in writing. Create a simple approval letter stating the terms and timeline.
Request a copy of the subletting agreement. You want to know the rent amount, duration, and responsibilities.
Update your records. Note who’s living in your property and their contact information.
Schedule inspections. Plan a move-in and move-out inspection with your original tenant.
Remind your tenant of their ongoing responsibilities. They’re still on the hook for everything.
Bottom Line for Calgary Landlords
Subletting requests are part of being a landlord in Alberta. You can’t automatically say no, but you can protect your investment by being thorough.
Respond quickly, document everything, and remember that your original tenant stays responsible for the lease terms. With clear policies and good communication, subletting can work for everyone.
Just don’t ignore those 14-day response deadlines—automatic approval isn’t usually what you want.
