The New Jersey 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 New Jersey?
In New Jersey, 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 a pet or a low credit score.
Standardized New Jersey Sublease Agreements
Here’s what is generally included in a New Jersey 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 – State the exact date of the sublease beginning and ending date.
- Rental Unit Location – The address for the rental unit as described in the original lease.
- Rent – How much the rent is, when it needs to be paid, and how to pay it.
- Security Deposit – New Jersey law limits the maximum security deposit to one and one-half month’s rent.
- Return of Security Deposit – Typically, New Jersey landlords have 30 days after the termination of the lease to return the security deposit.
- 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.
- 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 – This identifies the new tenant(s) and those authorized to live in the rental unit including any policy about short-term guests.
- 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 Sublessee and those that are to be paid by the Sublessor.
- 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.
- Smoking Policy – If smoking is restricted in the rental unit, any designated smoking areas are identified in the sublease.
- Parking Policy – A description of the permitted area the subtenant(s) and their guests may park, including any additional fees.
- Landlord’s Consent – This section describes how the landlord is asked for permission (if permission 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.
- 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.
- Signature: The signature and date for the Sublessor, the Sublessee, any Co-Sublessors, and Co-Sublessees (if they exist).
Tax Implications of a New Jersey Sublease
A sublessor in New Jersey may be subject to state and local taxes if they sublet a property for less than 90 days. For example, in Jersey City, taxes may include:
- New Jersey State Sales Tax – 6.625%
- New Jersey State Occupancy Tax – 5%
- Atlantic City Occupancy Fee – 1%