Calgary Landlord’s Comprehensive Guide to Subletting

As a landlord in Calgary, you may encounter tenants who want to sublet their rental property—whether it’s a condo, townhouse, or single-family home. Understanding your rights and responsibilities under Alberta’s Residential Tenancies Act (RTA) and City of Calgary bylaws is crucial to making informed, legally compliant decisions.

In this guide, I’ll break down everything you need to know about subletting, including:

• ✔ Legal obligations under Alberta law
• ✔ How to handle tenant requests properly
• ✔ Valid reasons to refuse a sublet
• ✔ Insurance and condo bylaws considerations
• ✔ Short-term rental rules in Calgary
• ✔ Common pitfalls and how to avoid them

Let’s dive in.

📝 Legal Obligations Under Alberta’s Residential Tenancies Act (RTA)

1. Written Consent is Mandatory
Under the RTA, tenants cannot sublet or assign their lease without your written permission. You must respond within 14 calendar days of receiving their request.

• If you don’t respond within 14 days, the law considers it automatic approval—even if you didn’t intend to allow it.
• If you refuse, you must provide valid, documented reasons (more on this below).

2. You Can Only Refuse for Valid Reasons
You cannot deny a sublet request based on personal preference. Acceptable reasons include:

• Poor credit or insufficient income of the subtenant
• Negative rental history (evictions, unpaid rent, property damage)
• Overcrowding (too many occupants for the unit size)
• Criminal record impacting safety or insurance
• Condo bylaws prohibiting subletting

3. No Fees Allowed
Landlords cannot charge fees for approving a sublet. The RTA prohibits any additional costs beyond the original lease terms.

4. Original Tenant Remains Liable
Even if a subtenant moves in, the original tenant is still responsible for:

• Rent payments
• Property damage
• Lease violations

This means you can still hold the original tenant accountable if the subtenant causes issues.

📄 Subletting vs. Assignment: Key Differences

• Subletting = Temporary (tenant plans to return)
• Assignment = Permanent (tenant transfers lease entirely)

Both require your written consent, but the legal implications differ.

✅ Valid Reasons to Refuse a Sublet Request

If you deny a sublet, you must provide written justification within 14 days. Valid reasons include:

• ✔ Financial Risk (poor credit, unstable income)
• ✔ Rental History Issues (past evictions, property damage)
• ✔ Overcrowding (too many occupants for the unit)
• ✔ Safety Concerns (criminal background, illegal activity)
• ✔ Condo Bylaw Restrictions (some condos ban sublets entirely)

Vague reasons like “I don’t want to” are not legally valid.

🛠️ Best Practices for Handling Sublet Requests

1. Respond Within 14 Days
   Approve or deny in writing—silence = automatic approval.
2. Screen the Subtenant
   Request:
   • Full name & contact details
   • Employment & income verification
   • Rental references
   • Credit/background check (if needed)
3. Review the Sublease Agreement
   Ensure it includes:
   • Rent amount & payment terms
   • Rules (noise, pets, smoking)
   • Original tenant’s ongoing liability
4. Document Everything
   Keep records of:
   • Tenant’s request
   • Your approval/denial letter
   • Sublease agreement
   • Property inspections
5. Conduct Inspections
   Before subtenant moves in (document condition) and after they move out (assess any damages).

🛡️ Insurance Implications

Subletting can affect your landlord insurance:

• ✔ Notify your insurer about the new occupant.
• ✔ Confirm coverage for sublet situations.
• ✔ Tenants should update their renters’ insurance—failure to do so may void their policy.

🏢 Condo Owners: Check Bylaws First

If the rental is in a condo, bylaws may override your decision:

• Some ban subletting entirely.
• Others limit the number of rental units.
• Violating bylaws can lead to fines or legal action by the condo board.

Always verify condo rules before approving a sublet.

🏨 Short-Term Rentals (Airbnb, VRBO) – Calgary’s Rules

If a tenant wants to short-term sublet (Airbnb), additional rules apply:

1. Business License Required (Since April 2025)
   Tier 1 (1–4 rooms): ~$100/year
   Tier 2 (5+ rooms): ~$172/year + fire inspection fee (~$104)
2. Required Documents
   • ✔ Proof of ownership or landlord consent
   • ✔ Condo board approval (if applicable)
   • ✔ $2 million liability insurance
   • ✔ Fire safety inspection
3. Provincial Tourism Levy (4%)
   Applies to stays under 28 days—must be collected and remitted.

Most leases prohibit short-term rentals—update your agreement if needed.

🚫 Common Problems & How to Prevent Them

1. Tenant Sublets Without Permission
   Serve a 14-day notice (if original tenant still resides there). If ignored, file for eviction through RTDRS.
2. Subtenant Doesn’t Pay or Causes Damage
   Original tenant is still liable—enforce lease terms. Consider requiring a co-signer or extra deposit.
3. Overcrowding
   Set occupancy limits in the lease. Screen subtenant numbers carefully.
4. Discrimination Risks
   Apply consistent screening criteria to all requests. Keep records to prove fairness.

📌 What to Do If You Approve

1. Issue a formal approval letter (include dates & conditions).
2. Get a signed sublease agreement.
3. Update tenant records (add subtenant details).
4. Schedule move-in/move-out inspections.
5. Remind original tenant they’re still responsible.

⚖️ Dispute Resolution: RTDRS

For conflicts (evictions, unpaid rent, damages), use Alberta’s Residential Tenancy Dispute Resolution Service (RTDRS) instead of court.

• Faster & more affordable.
• Legally binding decisions.

🎯 Key Takeaways for Calgary Landlords

• ✔ You must respond to sublet requests within 14 days—silence = approval.
• ✔ Only refuse for valid, documented reasons.
• ✔ Original tenant remains liable for rent & damages.
• ✔ Condo bylaws & insurance may restrict subletting.
• ✔ Short-term rentals require a business license in Calgary.
• ✔ Proper screening & documentation prevent legal issues.

🛠️ Need Help? Free Resources for Landlords

At Tiwana Real Estate Property Management, we help landlords navigate rental laws smoothly.

📌 Get free templates & guides at www.maltiwana.ca
📞 Call: 403-830-5152

Resources Available:

• ✔ Subletting request forms
• ✔ Approval/denial letter templates
• ✔ Sublease agreement checklist
• ✔ Inspection report templates
• ✔ RTDRS dispute guidance

Disclaimer: This guide provides general information—consult the RTA or a legal professional for specific cases.

By following these guidelines, you can protect your property and comply with Alberta’s rental laws. Have questions? Reach out anytime!

Malvinder S. Tiwana is a Calgary-based real estate professional and founder of Tiwana Real Estate | Property Management Division. With over 20 years of experience in residential, commercial, and rental property transactions, he offers strategic support for landlords navigating Alberta’s rental landscape. From legal compliance to tenant relations, Malvinder helps property owners make informed, confident decisions.
📍 Calgary, Alberta
📞 403-830-5152

Tiwana Real Estate | Property Management Division
www.maltiwana.ca | 403-830-5152