Tennessee Sublease Agreement
A Tennessee sublease agreement is a legal contract that allows a tenant, known as the sublessor, to rent part or all of their rental property to another individual, referred to as the subtenant. This arrangement can be beneficial for tenants who need to temporarily vacate their residence while still fulfilling their obligations under the original lease.
Tennessee Sublease Agreement
Right to Sublet
In Tennessee, tenants do not automatically have the right to sublet their rental property. Typically, the original lease will specify that the landlord’s permission is required for a sublease to take place. If the lease is ambiguous or does not mention subleasing, tenants should contact their landlord for clarification. It is advisable to obtain written consent from the landlord using a Landlord Consent Form.
Subletting Laws in Tennessee
Tennessee does not have specific laws governing subletting. Therefore, if the original lease does not prohibit subleasing, the landlord cannot refuse the tenant’s request to sublet. Tenants should notify their landlord at least 30 days before the sublease begins. If the landlord does not respond, it can be assumed that the request is approved. It is recommended to send this notice via certified mail.
What to Include in a Tennessee Sublease Agreement
A Tennessee sublease agreement should include the following elements:
- The start and end dates of the sublease.
- Whether the sublessor can renew the lease.
- The full names of both the sublessor and the subtenant.
- The terms of the rental agreement, including a copy of the original lease.
- The payment location for rent.
- The monthly rent amount.
- Details about the security deposit and utilities.
- Signatures of both the sublessor and the subtenant.
- The landlord’s consent.
Security Deposit Obligations
A sublessor is required to return the security deposit to the subtenant within 30 days after the end of the sublease.
Notices
A sublessor must provide a subtenant with a written notice of 14 days to pay rent or vacate the property. This notice period can be reduced to seven days if the sublessor has given a similar notice within the last six months. Additionally, a sublessor must provide a 30-day written notice if they do not intend to renew the sublease or the original lease.
Tax Obligations
Short-Term Rental Taxes
In Tennessee, various taxes apply to accommodations rented for less than 90 days. The tax rates can vary by location:
- State Sales Tax: 7%
- Local Sales Tax: 1.5% to 2.75% (varies by city)
- State Business Tax: Applicable to rentals of less than 180 days
- Local Business Tax: Applicable if imposed by the municipality
Additionally, local occupancy taxes may apply if the rental is offered through a short-term rental marketplace for fewer than 30 consecutive days.
Filing Frequency
Sales tax due dates depend on the filing frequency:
- Monthly: Due on the 20th day of the month following the reporting period.
- Quarterly: Due on the 20th day of the month following the end of the quarter.
- Annually: Due on January 20th.
Making Payments
Tenants must typically register to pay sales and use tax and local occupancy tax with the Tennessee Department of Revenue. If using a hosting platform like Airbnb, the responsibility for tax obligations may differ, and it is crucial to review all tax responsibilities thoroughly.
Statutes
- Tenn. Code Ann. § 66-28-301(a) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(2)(A) – Security deposits
- Tenn. Code Ann. § 66-28-301(g)(1) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(2) – Security deposits
- Tenn. Code Ann. § 66-28-301(b)(1)(B) – Security deposits
- Tenn. Code Ann. § 66-28-201(c) – Terms and conditions
- Tenn. Code Ann. § 66-28-201(d) – Terms and conditions
- Rent
- Tenn. Code Ann. § 47-29-102 – Handling charge
- Tenn. Code Ann. § 68-111-104 – Inspection
- Tenn. Code Ann. § 66-28-502 – Failure to supply essential services
- Tenn. Code Ann. § 66-28-512(c) – Landlord Recover Court and Attorney Fees
- Tenn. Code Ann. § 66-28-512(b) – Termination of periodic tenancy – Holdover remedies
- Tenn. Code Ann. § 66-28-512(a) – Termination of periodic tenancy – Holdover remedies
- Tenn. Code Ann. § 66-28-507 – Landlord Mitigate Damages
- Tenn. Code Ann. § 66-28-501 – Noncompliance with rental agreement by landlord
- Tenn. Code Ann. § 66-7-109(d) – Notice of termination by landlord – Testimony of manager against tenant
- Tenn. Code Ann. § 66-7-109 and § 66-28-505 – Notice of termination by landlord – Testimony of manager against tenant
- Tenn. Code Ann. § 66-7-109 – Termination for Lease Violation and Tenn.Code Ann. § 66-28-505 – Noncompliance by tenant – Failure to pay rent
- Tenn. Code Ann. § 66-7-107(a) – Termination for knowing controlled substance or prostitution violations
- Tenn. Code Ann. § 66-28-403(a) – Access by landlord
- Tenn. Code Ann. § 66-28-403(b) – Access by landlord
- Tenn. Code Ann. § 66-28-403(e)(5) – Access by landlord
- Tenn. Code Ann. § 66-28-519 – Towing of vehicles
- Tenn. Code Ann. § 66-28-404 – Use and occupation by tenant
- Tenn. Code Ann. § 66-28-405 – Abandonment
- Tenn. Code Ann. § 66-28-304 – Maintenance by landlord
- Tenn. Code Ann. § 66-28-401 – General maintenance and conduct obligations
- Tenn. Code Ann. § 66-28-302 – [Effective 1/1/2025] Address of landlord or agent
- Tenn. Code Ann. § 66-7-101 – Writing required for long term leases – Authentication and registration
- Tenn. Code Ann. § 66-7-104 and § 66-7-106 – Physically disabled persons’ access to housing accommodations
- Tenn. Code Ann. § 66-28-108 – Notification sent by e-mail
- Tenn. Code Ann. § 66-28-402 – Rules and regulations
- Tenn. Code Ann. § 66-28-514 – Retaliatory conduct prohibited
- Tenn. Code Ann. § 66-28-107 – Business License
- Tenn. Code Ann. § 16-15-501(d) – General jurisdiction
- Tenn. Code Ann. § 28-3-109 – Rent – Official misconduct – Contracts not otherwise covered – Title insurance – Demand notes
- Tenn. Code Ann. § 28-3-105 – Property tort actions – Statutory liabilities
FAQs
A Tennessee sublease agreement is a contract that allows a tenant (sublessor) to rent part or all of their rental property to another individual (subtenant) with the landlord’s permission. This arrangement helps tenants fulfill their lease obligations while accommodating new tenants.
Yes, subletting is legal in Tennessee as long as the original lease does not prohibit it. Tenants should seek explicit written permission from their landlord before subletting, even if the lease is silent on the matter.
A Tennessee sublease agreement should include the start and end dates of the sublease, names of the sublessor and subtenant, rental terms, payment location, monthly rent amount, security deposit details, and the landlord’s consent. It’s also advisable to attach a copy of the original lease.
To obtain permission to sublet in Tennessee, a tenant should send a written request to their landlord at least 30 days before the sublease begins. If the landlord does not respond, the tenant may assume that the request is approved.
In Tennessee, short-term rentals are subject to a 7% state sales tax, local sales tax ranging from 1.5% to 2.75%, and potentially state and local business taxes. Additionally, local occupancy taxes may apply if rentals are offered through a marketplace for less than 30 consecutive days.
A sublessor must provide a subtenant with a 14-day written notice to pay rent or vacate the property. This notice period can be reduced to seven days if the sublessor has given duplicate notice within the last six months.
In Tennessee, a sublessor is required to return the security deposit to the subtenant within 30 days of the end of the sublease. This ensures that the subtenant is reimbursed for any funds held during their tenancy.
Once a landlord has granted written consent for a sublease, they should not refuse the subtenant without a lawful reason. However, they can refuse a subtenant before granting consent based on valid concerns, such as potential risks to the property or other tenants.