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Subletting vs. Assigning a Lease in Alberta: A Landlord Guide

  • Writer: AspirePeak Properties Ltd.
    AspirePeak Properties Ltd.
  • Jan 24, 2022
  • 3 min read

Updated: 3 days ago

When a tenant asks to move out before their lease ends, two terms usually come up: subletting and assigning the lease. They sound similar, but they create very different risk, paperwork, and enforcement realities for a landlord.


This guide breaks down the difference, what to approve (in writing), and how to protect yourself while staying compliant.


Quick definitions


  • Sublet (subletting): Your original tenant stays on the lease and temporarily places another occupant in the property. Your tenant remains responsible for rent, damages, and lease compliance.


  • Assignment (assigning): Your original tenant transfers the lease to a new tenant for the remainder of the term. After it’s completed, the new tenant becomes your tenant and takes over the obligations


Subletting: when the tenant plans to return


A sublet is typically best when the tenant expects to come back before the lease ends (temporary relocation, travel, etc.).


What you should require before approving a sublet

  1. Written request from the tenant (dates, reason, and who will occupy the home).

  2. Your written approval before anyone moves in.

  3. Full application + screening for the proposed sub-tenant (same standards as any new tenant).

  4. A written sublet acknowledgement/amendment that confirms:

    1. The original tenant remains fully responsible for rent and utilities (as per the lease)

    2. The original tenant remains responsible for damages and rule compliance

    3. The sublet dates and who is approved to occupy

    4. Occupancy limits, pet terms, and any condo bylaws (if applicable)


Key risk point for landlords

With a sublet, your legal and practical leverage usually still runs through the original tenant, because the original lease remains in effect. If the sub-tenant doesn’t pay, causes damage, or violates rules, the original tenant is still on the hook.


  • Pros:

    • Lease continuity (no need to fully replace the tenant)

    • Original tenant remains responsible

  • Cons:

    • More moving parts (communication, access, expectations)

    • Higher chance of misunderstandings if the sublet is not documented clearly


Assigning a lease: when the tenant is leaving for good

An assignment is often cleaner when the tenant is permanently moving out and wants a replacement to take over.


What you should require before approving an assignment

1.      Written request from the tenant to assign the lease.

2.      Full application + screening for the replacement tenant.

3.      Your written approval of the replacement tenant.

4.      Signed assignment / new lease documentation confirming:

  • The new tenant takes over the lease terms

  • The new tenant is responsible for rent and utilities going forward

  • The move-in date and possession details

5.      Security deposit handling documented in writing (who paid what, and how it’s being treated).


Timing note (operational reality)

Assignments are usually most practical when there’s a meaningful amount of time left on the lease. If there’s a short time remaining, many landlords treat it as a lease break scenario instead (process and costs can differ). If you have a minimum timeline requirement (example: 6 months), state it clearly and apply it consistently.


Subletting vs. Assigning of a lease: side-by-side for landlords

Topic

Sublet

Assignment

Who is your tenant after approval?

Original tenant

New tenant

Who is responsible if the occupant doesn’t pay?

Original tenant

New tenant (after takeover)

Screening required?

Yes

Yes

Best for

Tenant returning later

Tenant leaving permanently

Main landlord risk

Confusion + enforcement complexity

Turnover + deposit documentation

Landlord best practices (to reduce risk)

·         Always require requests and approvals in writing.

·         Screen the incoming occupant like any other tenant. Consistency protects you.

·         Use clear paperwork. Spell out who is responsible for rent, utilities, damages, keys, and rules.

·         Confirm insurance expectations (tenant insurance requirements, if applicable).

·         Set expectations on showings and access if the tenant is still marketing the unit.

·         Don’t allow “informal” sublets. Unauthorized occupants create liability and enforcement issues.


How AspirePeak Properties supports landlords

If you’re a landlord and your tenant requests a sublet or assignment, our team can help you make a decision that protects your asset and reduces liability.


We can:

·         Review the request and timeline

·         Run a consistent screening process

·         Prepare the correct documentation

·         Coordinate move-in logistics and expectations


If you’d like a hands-off approach, explore our full-service options:

·         Rental Property Management


Contact us today for your FREE rental evaluation!


Assignment vs Sublet


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