Delaware Sublease Agreement

The Delaware 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 Delaware?

In Delaware, a tenant does need a landlord’s explicit written permission to sublet. Even after permission is given, a landlord still has the right to reject a subtenant if they are unqualified, such as for having bad references or a poor work history.

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Standard Delaware Sublease Agreements

A standard form can be used in Delaware to create a sublease. Here’s what is generally included in a Delaware 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 original lease.
• Term – State 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.
• General Conditions – A statement that the written sublease agreement contains all of the agreements between the parties and can only be modified by written consent of the parties to the agreement.
• Inventory of Included Items – The list of items in the rental unit that are part of the sublease (furniture or appliances).
• 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 is responsible for paying for any damages that impact the landlord as stated in the original lease agreement.
• Authorized Occupants – A list of the new tenant(s) and those authorized to live in the rental unit including any policy about short-term guests.
• 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.
• Security Deposit – This security deposit is held by the Sublessor (not the landlord). Delaware state law does require that the security deposit be limited to no more than one month’s rent.
• Return of Security Deposit – Landlords must return a security deposit by mail or hand-delivery with a written notice to the tenant’s forwarding address no later than 20 days after the lease term ends.
• 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.
• Parking Policy – A description of where the subtenant(s) and guest may park, including any additional fees incurred.
• 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 in Delaware

In Delaware, a sublessor may be subject to an 8% Lodgings Tax if they sublet a property for any period of less than 155 days.