Wisconsin Sublease Agreement
A Wisconsin sublease agreement is a legal contract that allows a tenant, known as the sublessor, to rent out all or a portion of their rented property to another individual, referred to as the sublessee. This arrangement can be beneficial for tenants who need a roommate or wish to vacate their rental before the lease term ends. It is essential that the sublease complies with the original lease and does not conflict with its terms, as the original tenant remains responsible for paying the landlord and is bound by the lease.
Wisconsin Sublease Agreement
Right to Sublet
In Wisconsin, the ability to sublet is contingent upon the length of the lease. Tenants with leases of less than one year must obtain explicit written permission from their landlord to sublet. Conversely, tenants with leases of one year or more may sublet without needing permission, provided that the lease does not explicitly prohibit subletting.
Tenants who are at-will or under periodic tenancies (such as week-to-week or month-to-month) are legally required to request approval from their landlord before subletting.
Key Components of a Wisconsin Sublease Agreement
A standardized Wisconsin sublease agreement typically includes the following components:
- Names of the Parties: Identification of the sublessor and sublessee.
- Term: Start and end dates of the sublease.
- Rent: Amount of rent, payment schedule, and payment method.
- Rental Unit Location: Address of the rental unit as per the master lease.
- Landlord’s Consent: Details on how the landlord’s permission is obtained.
- Master Lease Inclusion: Attachment of the master lease and any exceptions.
- General Conditions: Statement that the sublease contains all agreements and can only be modified in writing.
- Authorized Occupants: Identification of tenants and guests allowed in the rental unit.
- Disputes: Procedures for resolving disputes, including mediation and arbitration.
- Liability: Responsibilities for damages between sublessor and sublessee.
- Lead-Based Paint Notice: Required disclosure if the property was built before 1978.
- Security Deposit: Terms regarding the security deposit held by the sublessor.
- Return of Security Deposit: Requirement to return the security deposit within 21 days after the subtenant vacates.
- Inventory of Included Items: List of items included in the sublease.
- Utilities: Specification of utility payments by each party.
- Smoking Policy: Restrictions on smoking within the rental unit.
- Parking Policy: Parking arrangements for the subtenant and guests.
- Signature: Signatures of all parties involved.
Tax Implications of a Wisconsin Sublease
Sublessors may be subject to state and local taxes if they sublet for fewer than 30 consecutive days. The following taxes may apply:
- State Sales Tax: 5%
- County Sales and Use Tax: Varies by county/city
- Local Exposition Tax: As applicable
- Premiere Resort Area Tax: As applicable
- Municipal Room Tax: Varies by municipality
Filing Frequency for Taxes
The filing frequency for taxes depends on the amount of past remittances:
- $3,601 or more per quarter: Monthly filing required.
- $1,201 to $3,600: Monthly filing required.
- $601 to $1,200: Quarterly filing required.
- $600 or less per year: Annual filing required.
Due Dates for Filing
- Early Monthly: 20th of the following month.
- Monthly: Last day of the following month.
- Quarterly: Last day of the month following the end of the quarter.
- Yearly: January 31.
Payments can be made to the Wisconsin Department of Revenue, and hosting platforms may handle tax remittances on behalf of the sublessor.
Statutes
- Wis. Admin. Code §§ 134.06 – Security deposits
- Wis. Admin. Code §§ 134.06(2) – Security deposits
- Wis. Admin. Code §§ 134.06(4) – Security deposits
- Wis. Admin. Code §§ 134.06(1)(a) – Security deposits
- Wis. Admin. Code §§ 134.06(1)(b) – Security deposits
- Wis. Admin. Code §§ 134.05(4) – Earnest money deposits and credit check fees
- Wis. Admin. Code §§ 134.03(2a) – Rental agreements and receipts
- Wis. Stat. Ann. §§ 704.19(3) – Notice necessary to terminate periodic tenancies and tenancies at will
- Wis. Stat. Ann. §§ 704.15 – Requirement that landlord notify tenant of automatic renewal clause
- Wis. Stat. Ann. §§ 704.07(4) – Repairs; untenantability
- Wis. Admin. Code §§ 134.09(7) – Prohibited practices
- Wis. Stat. Ann. §§ 799.25(10) – Costs
- Wis. Stat. Ann. §§ 704.29(2)(b) – Recovery of rent and damages by landlord; mitigation
- Wis. Stat. Ann. §§ 704.17(1) – Notice terminating tenancies for failure to pay rent or other breach by tenant
- Wis. Stat. Ann. §§ 704.17(2)(b) – Notice terminating tenancies for failure to pay rent or other breach by tenant
- Wis. Stat. Ann. §§ 704.17(3) – Notice terminating tenancies for failure to pay rent or other breach by tenant
- Wis. Stat. Ann. §§ 704.05(2) – Rights and duties of landlord and tenant in absence of written agreement to contrary
- Wis. Stat. Ann. §§ 704.04(8) – Check-in sheet
- Wis. Stat. Ann. §§ 106.50(5m) – Open housing
- Wis. Stat. Ann. §§ 704.16 – Termination of tenancy for imminent threat of serious physical harm; changing locks
- Wis. Stat. Ann. §§ 704.05(5)(a) – Rights and duties of landlord and tenant in absence of written agreement to contrary
- Wis. Stat. Ann. §§ 704.05(5)(2) – Rights and duties of landlord and tenant in absence of written agreement to contrary
- Wis. Stat. Ann. §§ 704.45 – Retaliatory conduct in residential tenancies prohibited
- Wis. Admin. Code §§ 134.04(2) – Disclosure requirements
- Wis. Admin. Code §§ 134.04(1) – Disclosure requirements
- Wis. Stat. Ann. §§ 799.01(2) – Applicability of chapter
- Wis. Stat. Ann. §§ 799.40 – Eviction actions
- Wis. Admin. Code ATCP § ATCP 134.02(11) – Definitions
- Wis. Stat. § 704.02 – Severability of rental agreement provisions.
FAQs
Yes, in Wisconsin, tenants with leases of less than one year must obtain explicit written permission from their landlord to sublet. Tenants with leases of one year or more may sublet without permission unless their lease specifically prohibits it.
Sublessors in Wisconsin may be subject to state and local taxes if they sublet for less than 30 days. This includes a 5% state sales tax, along with various local taxes that may apply depending on the municipality.
A Wisconsin sublease agreement should include the names of the parties, the term of the sublease, rent details, the rental unit location, landlord’s consent, and conditions regarding security deposits, utilities, and disputes, among other elements.
If a landlord denies a subtenant, they are not obligated to provide a reason. However, they can reject a subtenant based on qualifications, such as a poor rental history or prior evictions.
In Wisconsin, a landlord must return the security deposit within 21 days after the tenant vacates the rental unit or is evicted.
A short-term rental in Wisconsin is defined as a residential dwelling rented for fewer than 30 consecutive days. This classification triggers the application of state sales tax and various local taxes.
Yes, tenants with month-to-month leases must request approval from their landlord to sublet. The landlord’s consent is necessary unless the original lease allows subletting without permission.
To obtain landlord consent to sublet in Wisconsin, tenants should formally request written permission from their landlord. It’s advisable to use a Landlord Consent Form to document this request.