New Jersey Sublease Agreement

Right to Sublet

In New Jersey, the right to sublet is primarily determined by the original lease agreement. State law does not explicitly address subleasing, meaning that the lease may either prohibit subletting entirely or outline specific conditions under which it is permitted. Generally, explicit written permission from the landlord is required for a tenant to sublet. If the original lease is unclear or silent regarding subleasing, it is advisable for the tenant to communicate with the landlord to clarify the situation.

Permission to Sublet

Tenants must obtain explicit written consent from their landlord to sublet the property. Even with permission, landlords retain the right to reject a subtenant based on qualifications, such as credit score or pet ownership. If a landlord denies a tenant’s request to sublet, they must provide a lawful and nondiscriminatory reason for the denial.

Standardized New Jersey Sublease Agreements

A New Jersey sublease agreement typically includes the following components:

• Names of the Parties: Identification of the original tenant (Sublessor) and the new tenant (Sublessee).
• Term: Start and end dates of the sublease.
• Rental Unit Location: Address of the rental unit as per the original lease.
• Rent: Amount of rent, payment schedule, and payment method.
• Security Deposit: The maximum security deposit is limited to one and one-half month’s rent.
• Return of Security Deposit: Landlords have 30 days to return the security deposit after the lease ends.
• General Conditions: A statement that the sublease contains all agreements and can only be modified in writing.
• Liability: The sublessee is liable for damages, while the sublessor is responsible for damages impacting the landlord.
• Authorized Occupants: Identification of the new tenant(s) and any policies regarding guests.
• Inventory of Included Items: A list of items included in the sublease.
• Utilities: Specification of which utilities are paid by the sublessee and sublessor.
• Lead-Based Paint Notice: Required if the property was built before 1978.
• Disputes: A description of how disputes will be resolved, potentially including mediation or arbitration.
• Smoking Policy: Identification of smoking restrictions and designated areas.
• Parking Policy: Description of parking permissions and any associated fees.
• Landlord’s Consent: Process for obtaining landlord permission if not included in the original lease.
• Master Lease Inclusion: Attachment of the Master Lease, with any exceptions clearly stated.
• Signature: Signatures of all parties involved.

Tax Implications of a New Jersey Sublease

Sublessors in New Jersey may be subject to state and local taxes if they sublet a property for less than 90 days. The following taxes may apply:

• State Sales Tax: 6.625%
• State Occupancy Tax: 5%
• Local Taxes: Additional taxes may apply based on the location, such as:
  • Atlantic City Occupancy Fee: 1%
  • Meadowlands Regional Hotel Use Assessment: 3% for properties in the Meadowlands area.

Statutes

• N.J. Stat. § 2A:14-1 – 6 years
• N.J. Stat. § 46:8-21.2 – Limitation on amount of deposit
• N.J. Stat. § 46:8-19 – Security deposits; investment, deposit, disposition
• N.J. Stat. § 46:8-21.1 – Return of deposit; displaced tenant; termination of lease; civil penalties, certain
• N.J. Stat. § 46:8-50 – Notification, tenants, flood zone
• N.J. Stat. § 46:8-28 – Certificate of registration; filing, contents
• N.J. Stat. § 46:8-28.1 – Certificate; indexing, filing; inspection; fee; validation
• N.J. Stat. § 46:8-29 – Provision of copy of certificate of registration to tenant
• N.J. Stat. § 46:8-45 – Statement of legal rights and responsibilities of tenants and landlords of rental dwelling units
• N.J. Stat. § 46:8-46 – Statement; distribution and posting by landlords
• N.J. Stat. § 2A:18-56(a) – Proof of notice to quit prerequisite to judgment
• N.J. Stat. § 2A:18-56(b) – Proof of notice to quit prerequisite to judgment
• N.J. Stat. § 2A:18-56(c) – Proof of notice to quit prerequisite to judgment
• N.J. Stat. § 2A:18-61.2 – Removal of residential tenants; required notice; contents; service
• N.J. Stat. § 2A:42-88 – Grounds for action
• N.J. Stat. § 2A:32A-1 – Civil action for bad checks, electronic funds transfers
• N.J. Stat. § 2C:43-8 – Sentence of imprisonment for disorderly persons offenses and petty disorderly persons offenses
• N.J. Admin. Code § 5:10-14.4(a) – Minimum Temperature