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Alabama Sublease Agreement

An Alabama sublease agreement is a legal contract that allows a tenant, referred to as the “Sublessor,” to rent out all or a portion of their property to another individual, known as the “Sublessee,” in exchange for regular payments. The subtenant is bound by the terms and conditions of the original lease agreement, and the original tenant remains ultimately responsible for any obligations under that lease.

Alabama Sublease Agreement

Alabama Sublease Agreement

Right to Sublet

In Alabama, tenants must obtain written permission from their landlord to sublet their rental unit. The current lease agreement will dictate whether subletting is allowed. If the lease prohibits subletting, the tenant cannot sublet their rental unit without the landlord’s consent. Even with consent, landlords retain the right to reject a subtenant based on criteria such as bankruptcy or a low credit score.

Standardized Alabama Sublease Agreements

A standardized form can be used to create a sublease in Alabama. Key components typically included in a sublease agreement are:

  • Names of the Parties: Identification of the Sublessor and Sublessee.
  • Rental Unit Location: Address of the rental unit.
  • Term: Start and end dates of the sublease.
  • Rent: Amount of rent, payment due dates, and payment methods.
  • Utilities: Specification of which utilities are paid by whom.
  • Liability: Responsibilities for damages and obligations to the landlord.
  • Authorized Occupants: Identification of who can occupy the rental unit.
  • Security Deposit: Amount and conditions regarding the security deposit.
  • Return of Security Deposit: Requirement to return the deposit within 60 days after the subtenant vacates.
  • Inventory of Included Items: List of items included in the rental.
  • Lead-Based Paint Notice: Required notice if the property was built before 1978.
  • Master Lease Inclusion: Attachment of the master lease to the sublease.
  • Disputes: Procedures for resolving disputes.
  • General Conditions: Statement regarding modifications to the agreement.
  • Smoking Policy: Designation of smoking areas, if applicable.
  • Landlord’s Consent: Description of how to obtain landlord consent.
  • Governing Law: Reference to Alabama Code section 35 – 9, the Landlord and Tenant Act.
  • Signature: Signatures of all parties involved.

Tax Implications of a Sublease

A sublessor may be subject to the Lodgings Tax if they sublet a property for any period of less than 180 continuous days. The tax rates are as follows:

  • 5% Tax Rate: Applicable in the following counties:

    • Blount
    • Cherokee
    • Colbert
    • Cullman
    • DeKalb
    • Etowah
    • Franklin
    • Jackson
    • Lauderdale
    • Lawrence
    • Limestone
    • Madison
    • Marion
    • Marshall
    • Morgan
    • Winston

  • 4% Tax Rate: Applicable in all other counties.

Filing Frequency

State taxes are due each month on or before the 20th day, unless the taxpayer elects to file quarterly, bi-annually, or annually by February 20 of the tax year. The eligibility for different filing frequencies is based on the total lodging taxes for the previous year:

  • Quarterly filings: Allowed if total lodging taxes are less than $2,400.
  • Semi-annual filings: Allowed if total lodging taxes are less than $1,200 or if no more than two 30-day accommodations were provided in the preceding year.
  • Annual filings: Allowed if total lodging taxes are less than $600 or if no more than one 30-day accommodation was provided in the preceding year.

Making Payments

Payments of the lodgings tax can be made at the Alabama Department of Revenue. If using a third-party booking platform (like Airbnb), payments are often processed through the platform, which may eliminate the need for separate filing or registration with the Department of Revenue.

Statutes

FAQs

Yes, in Alabama, tenants must obtain explicit written consent from their landlord to sublet their rental unit. If the original lease prohibits subletting, the tenant cannot sublet without the landlord’s permission.

An Alabama sublease agreement typically includes the names of the parties, rental unit location, term of the sublease, rent details, utilities responsibilities, liability clauses, security deposit terms, and a lead-based paint notice if applicable. It must also reference the master lease and include a section for landlord consent.

If you sublet a property for less than 180 continuous days, you may be subject to a lodgings tax of 5% in certain counties, including Blount and Madison, and 4% in all other counties. This tax is due monthly unless you choose to file quarterly, semi-annually, or annually based on your previous year’s tax total.

In Alabama, a landlord must return the security deposit within 60 days after the tenant vacates the rental unit. If there are damages, the sublessor can sue the sublessee for excessive damages, which may include recovery of actual costs and reasonable attorney’s fees.

Even if you have obtained permission to sublet, a landlord in Alabama can reject a subtenant based on qualifications, such as a poor credit score or bankruptcy. It is essential to ensure that your prospective subtenant meets any criteria set by the landlord.

To sublet your rental unit in Alabama, first review your lease agreement to confirm if subletting is allowed. Then, obtain written consent from your landlord, draft a sublease agreement that includes all necessary terms, and ensure compliance with local tax regulations if applicable.

Yes, subleases in Alabama are governed by the Alabama Code section 35-9, known as the Landlord and Tenant Act. This law outlines the rights and responsibilities of both landlords and tenants, including provisions related to subleasing.

Lodgings tax payments in Alabama can be made at the Alabama Department of Revenue. If you use a third-party booking platform like Airbnb, the platform typically handles tax payments on your behalf, so you may not need to file or register separately.