Colorado Sublease Agreement

Last Updated: December 18, 2023 by Jessica Menefee

Colorado Residential Sublease Agreement Template_1 on

The Colorado sublease agreement is a legal contract that allows a tenant to rent out all or a portion of the property to a subtenant in exchange for regular payments.

Does a Tenant Need the Landlord’s Permission to Sublet in Colorado?

Colorado state law does not inherently give tenants the right to sublet, meaning that a tenant does have to get the landlord’s explicit written consent. Even after consent is given, a landlord still has the right to reject a subtenant if they are unqualified, such as for having a criminal history or low income.

Read More 

Standardized Colorado Sublease Agreements

Here’s what is generally included in a Colorado sublease agreement:

  • The Names of the Parties – The original tenant under the lease is named in the sublease and is called the “Sublessor.” The third-party that is subleasing the rental unit is named in the sublease and is called the “Sublessee.”
  • Rental Unit Location – The address for the rental unit as described in the master lease.
  • Term – The exact date of the sublease beginning and ending date.
  • Rent – How much the rent is, when it needs to be paid, and how to pay it.
  • Late fees – Discuss the late rent policy and if fees apply.
  • Utilities – The utilities to be paid by the Sublessor and those that are to be paid by the Sublessee.
  • Liability – The sublessee will be liable for any damages to the Sublessor. The Sublessor has the ultimate responsibility to pay for any damages as stated in the master lease agreement.
  • Authorized Occupants – A list that identifies the new tenant(s) and those authorized to live in the rental unit including any policy about short-term guests.
  • Security Deposit – The security deposit is held by the Sublessor (not the landlord). Colorado state law requires that the security deposit be limited to no more than two months’ rent and that the new (sub)tenant be provided a receipt.
  • Return of Security Deposit – Colorado law requires landlords to return the security deposit one month after the tenant vacates the rental unit or the lease term ends, whichever is later. The lease agreement can specify a longer period to return the security deposit, up to 60 days.
  • Inventory of Included Items – The list of items in the rental unit that are part of the sublease (furniture or appliances).
  • Improvements to the rental unit – Discuss if the subtenant is allowed to paint or make any changes to the unit.
  • Lead-Based Paint Notice – Under Federal law, if the rental unit’s premises were built before 1978, the Sublessee must be given a written warning notice, called a Lead-Based Paint Disclosure.
  • Master Lease Inclusion – A copy of the Master Lease is attached to the sublease. If any exceptions in the Master Lease are not included they should be clearly stated in this section.
  • Disputes – A description of how disputes between the Sublessor and Sublessee are to be settled, which may include mediation and binding arbitration to avoid more expensive legal proceedings.
  • Smoking Policy – If smoking is restricted in the rental unit and any designated smoking areas are identified in the sublease.
  • Landlord’s Consent – This section describes how the landlord is asked to consent (if consent is not already included in the Master Lease). Tenants may create a signed sublease that is conditional on being accepted by the landlord before the sublease becomes effective.

Tax Implications of a Sublease

Colorado collects applicable state sales tax, county lodgings tax, and special district taxes for units rented for less than 30 consecutive days.

For example, in Grand Junction, the following taxes are charged:

  • City of Grand Junction Sales Tax – 3.39%
  • State of Colorado Sales Tax – 2.90 %
  • Mesa County Sales Tax – 2.37%
  • Lodgings Tax – 6%