The Kentucky 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 Kentucky?
A tenant does need a landlord’s explicit written consent to sublet in Kentucky. Even after consent is given, a landlord still has the right to reject a subtenant if they are unqualified, such as for having a low credit score or low income.
Standardized Kentucky Sublease Agreements
A standard form can be used in Kentucky to create a sublease. Here is what is generally included in a Kentucky 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.”
- 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.
- Rental Unit Location – The address for the rental unit as described in the master lease.
- 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.
- Security Deposit – This security deposit is held by the Sublessor (not the landlord). There is no limit on how much a landlord can collect for a security deposit in Kentucky.
- Return of Security Deposit – Landlords must return the security deposit to the tenant within a reasonable length of time with a written notice stating how much they withheld (if any). Kentucky does not have a specific deadline for the return of a security deposit.
- Inventory of Included Items – The list of items in the rental unit that are part of the sublease which may include furniture or appliances.
- 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.
- 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.
- 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.
- Utilities – The utilities to be paid by the Sublessor and those that are to be paid by the Sublessee.
- Smoking Policy – If smoking is restricted in the rental unit and any designated smoking areas are identified in the sublease.
- Authorized Occupants – This identifies the new tenant(s) and those authorized to live in the rental unit including any policy about short-term guests.
- 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 master lease agreement.
- Landlord’s Consent – This section describes how the landlord is asked to give 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.
- Signature: The signature and date for the Sublessor, the Sublessee, any Co-Sublessors, and Co-Sublessees (if they exist).
Tax Implications of a Sublease
In Kentucky, a sublessor may be subject to state sales tax, transient tax, and additional city and county tax if they sublet a property for 30 days or less. For example, the City of Frankfort Tax requirements include:
- Kentucky State Sales Tax – 6%
- Kentucky Transient Tax – 1%
- City of Frankfort Transient Room Tax – 4%
- Fine Arts Tax 2%
