Arizona Sublease Agreement

Permission to Sublet

In Arizona, tenants must obtain explicit written consent from their landlord to sublet their rental unit. Even with consent, landlords retain the right to reject a proposed subtenant based on qualifications, such as credit score or work history. Arizona does not have specific subletting laws apart from mobile home regulations (Title 33, Chapter 11, Section 33-1454). Landlords cannot unreasonably withhold approval for a sublease once consent is granted.

Standard Components of an Arizona Sublease Agreement

A typical Arizona sublease agreement includes the following elements:

• Names of the Parties: Identification of the Sublessor and Sublessee.
• Rental Unit Location: The address of the rental unit.
• Term: The start and end dates of the sublease.
• Rent: Amount, payment schedule, and payment methods.
• Utilities: Specification of which utilities are paid by the Sublessor and Sublessee.
• Liability: Clarification that the Sublessee is liable for damages, while the Sublessor is ultimately responsible to the landlord.
• Authorized Occupants: Identification of who is allowed to reside in the rental unit.
• Security Deposit: Details regarding the security deposit, which is limited to a maximum of one and one-half month’s rent under Arizona law.
• Return of Security Deposit: Requirement to return the deposit within 14 business days after the Sublessee vacates, with any non-refundable deposits clearly stated.
• Inventory of Included Items: List of items included in the sublease.
• Lead-Based Paint Notice: Required for properties built before 1978.
• Master Lease Inclusion: Attachment of the Master Lease to the sublease.
• Disputes: Procedures for resolving disputes between the Sublessor and Sublessee.
• General Conditions: Statement that the sublease contains all agreements and can only be modified in writing.
• Smoking Policy: Any restrictions on smoking within the rental unit.
• Landlord’s Consent: Description of how landlord consent is obtained.
• Signatures: Signatures of all parties involved.

Tax Implications of Subleasing

In Arizona, sublessors may be subject to the Transaction Privilege Tax (TPT) if they sublet a property for more than 30 days. For rentals of 30 days or less, they are subject to State Transient Lodging fees.

• Tax Rates:

  • 5.6% state sales tax (TPT).
  • Additional county and city taxes may apply, particularly if the rental is within city limits.

• Filing Requirements:

  • Sublessors must obtain a seasonal TPT license and file taxes based on the rental duration. Returns are due monthly by the twentieth day of the following month.

Statutes

• Ariz. Rev. Stat. Ann. §§ 33-1321(A) – Security Deposit Maximum
• Ariz. Rev. Stat. Ann. §§ 33-1321(B) – Nonrefundable Fees
• Ariz. Rev. Stat. Ann. §§ 33-1321(C) – Notice of Date/Time of Move-Out Inspection
• Ariz. Rev. Stat. Ann. §§ 33-1321(D) – Deadline for Returning Security Deposit
• Ariz. Rev. Stat. Ann. §§ 33-1321(E) – Failure to Comply with Security Deposit Return
• Ariz. Rev. Stat. Ann. §§ 33-1314(C) – When Rent Is Due
• Ariz. Rev. Stat. Ann. §§ 33-1414(C) – Late Fees for Manufactured Homes
• Ariz. Rev. Stat. Ann. §§ 33-1414(A4) – Rent Grace Period for Manufactured Homes
• Ariz. Rev. Stat. Ann. §§ 33-1364 – Tenant Allowed to Withhold Rent for Essential Services
• Ariz. Rev. Stat. Ann. §§ 33-1363 – Tenant Allowed to Repair and Deduct Rent
• Ariz. Rev. Stat. Ann. §§ 12-341.01 – Landlord Allowed to Recover Court and Attorney Fees
• Ariz. Rev. Stat. Ann. §§ 33-1370(C) – Landlord Must Mitigate Damages to Lessee
• Ariz. Rev. Stat. Ann. §§ 33-1370(E) – Tenant’s Personal Property Held by Landlord
• Ariz. Rev. Stat. Ann. §§ 33-1370(F) – Record Keeping of Sale of Tenant’s Property
• Ariz. Rev. Stat. Ann. §§ 33-1375(A) – Notice to Terminate Tenancy (Week-to-Week Lease)
• Ariz. Rev. Stat. Ann. §§ 33-1375(B) – Notice to Terminate Tenancy (Month-to-Month Lease)
• Ariz. Rev. Stat. Ann. §§ 33-1375(C) – Tenant Holdover
• Ariz. Rev. Stat. Ann. §§ 33-1368(A) – Termination for Lease Violation
• Ariz. Rev. Stat. Ann. §§ 33-1368(B) – Lease Termination for Nonpayment
• Ariz. Rev. Stat. Ann. §§ 33-1368(A2) – Termination of Lease for Falsification of Information
• Ariz. Rev. Stat. Ann. §§ 33-1343(A) – Entry Allowed with Notice for Maintenance and Repairs
• Ariz. Rev. Stat. Ann. §§ 33-1343(C) – Emergency Entry Allowed without Notice
• Ariz. Rev. Stat. Ann. §§ 33-1343(D) – Required Notice before Entry
• Ariz. Rev. Stat. Ann. §§ 33-1367 – No Lockouts or Utility Shut-offs Allowed
• Ariz. Rev. Stat. Ann. §§ 33-1324 – Landlord Responsibilities
• Ariz. Rev. Stat. Ann. §§ 33-1341 – Tenant Responsibilities
• Ariz. Rev. Stat. Ann. §§ 33-1902 – Recording of Rental Property
• Ariz. Rev. Stat. Ann. §§ 33-1902 – Business License Required
• Ariz. Rev. Stat. Ann. §§ 33-1322 – Disclosure of the Landlord and Tenant Act
• Ariz. Rev. Stat. Ann. §§ 33-1319 – Bedbug Infestation Regulations
• Ariz. Rev. Stat. Ann. §§ 33-1318(A) – Domestic Violence Situations: Proof of Status
• Ariz. Rev. Stat. Ann. §§ 33-1318(E) – Changing Locks in Domestic Violence Situations
• Ariz. Rev. Stat. Ann. §§ 33-1381 – Assumption of Retaliation
• Ariz. Rev. Stat. Ann. §§ 33-1370(C) – Landlord Must Mitigate Damages to Lessee
• Ariz. Rev. Stat. Ann. §§ 33-1370(E) – Tenant’s Personal Property Held by Landlord
• Ariz. Rev. Stat. Ann. §§ 33-1370(F) – Record Keeping of Sale of Tenant’s Property
• Ariz. Rev. Stat. Ann. §§ 22-503 – Arizona Small Claims Court Limits
• Ariz. Rev. Stat. § 44-6852 – Dishonored checks; service fee