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Maryland Sublease Agreement

A Maryland sublease agreement is a legal contract that allows a tenant (referred to as the “sublessor”) to rent out all or a portion of their rental property to another person (the “sublessee”) in exchange for regular payments. This agreement is separate from the original lease between the tenant and the landlord.

Maryland Sublease Agreement

Maryland Sublease Agreement

Right to Sublet

In Maryland, tenants must obtain explicit written permission from their landlord to sublet their rental property. This requirement applies regardless of the terms outlined in the original lease. Landlords retain the right to reject a subtenant based on their qualifications, such as a criminal history or poor references.

Standard Components of a Sublease Agreement

A standard Maryland sublease agreement typically includes the following elements:

  • 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 schedule, and payment method.
  • Utilities: Specification of which utilities are paid by the sublessor and sublessee.
  • General Conditions: Statement that the agreement contains all terms and can only be modified in writing.
  • Liability: Sublessee’s liability for damages, with the sublessor remaining responsible to the landlord.
  • Disputes: Procedures for resolving disputes, potentially including mediation or arbitration.
  • Authorized Occupants: List of individuals authorized to live in the rental unit.
  • Security Deposit: Details regarding the security deposit, which is held by the sublessor and cannot exceed two months’ rent.
  • Pet Deposit: Conditions regarding pet deposits, if applicable.
  • Return of Security Deposit: Requirement for landlords to return the security deposit within 45 days after the lease term ends.
  • Inventory of Included Items: List of items included in the rental unit.
  • Lead-Based Paint Notice: Required notice if the property was built before 1978.
  • Master Lease Inclusion: Attachment of the master lease and any exceptions.
  • Smoking Policy: Restrictions on smoking within the rental unit.
  • Landlord’s Consent: Process for obtaining landlord consent, if not already included in the master lease.
  • Signature: Signatures and dates for all parties involved.

Tax Implications of a Sublease in Maryland

Sales Tax

Maryland imposes a 6% Sales and Use tax on accommodations rented for less than four consecutive months. This tax must be separately stated on the record of sale. It does not apply to individuals renting on a monthly basis or permanent residents.

Local Taxes

Additional hotel and transient guest taxes may apply depending on the county or municipality. Definitions of “short-term” rentals may vary by location, affecting tax rates:

  • Carroll County: Not exceeding 25 days.
  • Frederick County: Not exceeding 90 days.
  • Garrett County: Not exceeding 30 days.
  • Washington County: Not exceeding 30 days.

Tax Filing

Sublessors may be required to collect and remit taxes based on the duration of the rental. For example, in Baltimore, the tax structure includes:

  • Maryland State Sales Tax: 6%
  • Baltimore County Transient Tax: 9.5% (for rentals less than 88 days)

Payments should be submitted to the Comptroller of Maryland, and depending on the hosting platform (e.g., Airbnb), tax remittance may be handled by the platform.

Sublessors must comply with all terms of the sublease agreement and the original lease, as well as Maryland laws regarding eviction processes, security deposits, and landlord-tenant matters.

Eviction Process

If a subtenant fails to pay rent, the sublessor must submit a written complaint for eviction to the District Court and provide a 30-day written notice of intent not to renew the sublease or original lease.

Statutes

FAQs

Yes, in Maryland, tenants must obtain explicit written permission from their landlord to sublet their rental property. Even with consent, landlords have the right to reject a subtenant based on their qualifications, such as criminal history or poor references.

A Maryland sublease agreement typically includes the names of the parties, rental unit location, term of the sublease, rent details, utilities responsibilities, liability clauses, dispute resolution methods, authorized occupants, security deposit terms, and a smoking policy, among other provisions.

In Maryland, sublessors may be subject to a 6% state sales tax if they sublet a property for 124 days or less. Additionally, local taxes may apply, such as Baltimore County’s transient tax of 9.5% for rentals under 88 days.

Maryland law requires landlords to return any remaining portion of the security deposit within 45 days after the lease term ends. This applies to both the original lease and any sublease agreements.

Yes, a subtenant in Maryland has the same rights and responsibilities as the original tenant and can be evicted for failing to pay rent, causing damage, or breaching the lease terms. The sublessor must follow the proper eviction process as outlined in Maryland law.

If your lease does not address subletting, it typically means that you do not have an automatic right to sublet. You may still need to seek your landlord’s approval, as most leases require landlord consent for subleasing.

A Lead-Based Paint Disclosure is a written notice that must be provided to sublessees if the rental unit was built before 1978. This disclosure informs tenants of potential lead hazards in the property.

In Maryland, the maximum security deposit that can be charged is limited to two months’ rent. This includes any pet deposits, which cannot exceed the total limit of two months’ rent.