Arkansas Sublease Agreement
An Arkansas sublease agreement is a legal document that allows a tenant (the “Sublessor”) to rent out all or part of their rental property to a third party (the “Sublessee”) in exchange for regular payments. This agreement is governed by the original lease terms between the tenant and the landlord.
Arkansas Sublease Agreement
Right to Sublet
In Arkansas, tenants may sublet their property unless their lease explicitly prohibits or regulates it. Although there are no specific laws governing subleasing, it is strongly recommended that tenants obtain written consent from their landlord before entering into a sublease. This ensures compliance with any occupancy restrictions or other housing regulations that may apply.
Components of an Arkansas Sublease Agreement
An Arkansas sublease agreement typically includes the following elements:
- Names of the Parties: Identifies the Sublessor and Sublessee.
- Rental Unit Location: Specifies the address of the rental unit.
- Term: States the start and end dates of the sublease.
- Rent: Details the amount of rent, payment schedule, and payment method.
- Utilities: Outlines which utilities are paid by the Sublessor and which by the Sublessee.
- Liability: Clarifies that the Sublessee is liable for damages, while the Sublessor remains responsible for obligations under the original lease.
- Authorized Occupants: Lists individuals authorized to reside in the rental unit.
- Security Deposit: Indicates the security deposit amount, which cannot exceed two months’ rent, and stipulates its return within 60 days after the subtenant vacates.
- Pet Deposit: If applicable, an additional deposit for pets may be charged.
- Inventory of Included Items: Lists items included in the rental unit.
- Move-in Checklist: Documents the condition of the unit at the start of the sublease.
- Lead-Based Paint Notice: Required for properties built before 1978.
- Master Lease Inclusion: A copy of the original lease should be attached.
- Disputes: Describes how disputes will be resolved, potentially including mediation or arbitration.
- General Conditions: States that the sublease contains all agreements and can only be modified in writing.
- Smoking Policy: Details any restrictions on smoking within the unit.
- Landlord’s Consent: Outlines how the landlord’s consent will be obtained.
- Signatures: Requires signatures from all parties involved.
Tax Implications of a Sublease
Subleases in Arkansas for a duration of 30 days or less are subject to a Lodgings tax, which includes:
- 6.5% State Sales Tax
- 2% State Tourism Tax
- County Sales Tax: Varies by county.
- City Sales Tax: Varies by city, if applicable.
Tenants may need to register for a short-term rental (STR) business license, starting the application process with the city clerk. Taxpayers must also register with the Director of the Department of Finance and Administration before conducting business.
Statutes
- A.C.A. § 18-16-303 – Security Deposit Exceptions
- A.C.A. § 18-16-304 – Security Deposit Maximum
- A.C.A. § 18-16-305 – Deadline for Returning Security Deposit
- Ark. Code § 18-16-306 – Remedies
- A.C.A. § 5-37-307 – Returned Check Fees (Part 1)
- A.C.A. § 5-37-304 – Returned Check Fees (Part 2)
- A.C.A. § 18-17-401 – Rent Is Due
- A.C.A. § 18-17-701(b) – Rent Grace Period
- A.C.A. § 18-17-701(2) – Landlord Allowed to Recover Court and Attorney Fees (Part 1)
- A.C.A. § 18-17-704 – Landlord Allowed to Recover Court and Attorney Fees (Part 2)
- A.C.A. § 18-17-704 – Notice to Terminate Tenancy (Month-to-Month Lease)
- A.C.A. § 18-17-704 – Notice to Terminate Tenancy (Week-to-Week Lease)
- A.C.A. § 18-17-701 – Termination for Nonpayment (Part 1)
- A.C.A. § 18-16-101 – Termination for Nonpayment (Part 2)
- A.C.A. § 18-17-901(b) – Termination for Nonpayment (Part 3)
- A.C.A. § 18-17-601 – Tenant’s Duties
- Ark. Code § 18-17-602 – Access
- A.C.A. § 18-16-108 – Abandonment of Personal Property
- A.C.A. § 18-16-112(b) – Domestic Violence Situations: Protection from Termination
- A.C.A. § 18-16-112(b) – Domestic Violence Situations: Locks
- A.C.A. § 18-16-112(d) – Domestic Violence Situations: Proof of Status
- A.C.A. § 18-60-304 – Termination for Lease Violation
- A.C.A. § 20-27-608 – Retaliation Prohibition (Lead Hazards)
- A.C.A. § 16-56-111 – Statute of Limitations for Written Contracts
- Ark. Code § 18-17-502(d)(3) – Implied residential quality standards
FAQs
An Arkansas sublease agreement is a legal document that allows a tenant to rent out all or part of their rental property to a third party, known as a subtenant. This agreement must comply with the terms of the original lease and typically requires written permission from the landlord.
Yes, tenants in Arkansas must obtain written permission from their landlord before subletting their rental property. Even if the original lease does not explicitly prohibit subleasing, it is advisable to seek consent to avoid potential issues.
Subleases of 30 days or less in Arkansas are subject to short-term rental taxes, including a 6.5% state sales tax and a 2% state tourism tax, along with varying county and city sales taxes. Tenants may also need to obtain a short-term rental business license depending on local regulations.
An Arkansas sublease agreement should include the names of the parties, rental unit location, term of the sublease, rent details, utilities responsibilities, security deposit terms, and a move-in checklist. It should also address liability, authorized occupants, and any smoking policies.
If a landlord denies a sublease request, the tenant must comply with the landlord’s decision. The landlord has the right to reject a subtenant based on valid reasons, such as a poor rental history or criminal background, even if the original lease does not prohibit subleasing.
In Arkansas, a landlord must return the security deposit within 60 days after the tenant vacates the rental unit. This applies to sublessors as well, who are responsible for returning the deposit to their subtenants.
To obtain a short-term rental business license in Arkansas, tenants typically start the application process with the city clerk. They may need to register with the Director of the Department of Finance and Administration and comply with local tax regulations.
Yes, landlords can impose restrictions on subleasing through the original lease agreement. If the lease includes specific clauses about subletting, tenants must adhere to those terms, and violating them could lead to eviction.