The New York 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 York?
In New York, a tenant does need a landlord’s explicit written permission to sublet. Even after consent is given, a landlord still has the right to reject a subtenant if they are unqualified, such as for having a high debt-to-income ratio or poor references.
Standardized New York Sublease Agreements
A standard form can be used in New York to create a sublease. Here’s what is generally included in a New York 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.
- Rent – How much the rent is, when it needs to be paid, and how to pay it.
- Term – State the exact date of the sublease beginning and ending date.
- 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.
- Master Lease Inclusion – A copy of the original lease is attached to the sublease. If any exceptions in the original lease are not included they should be clearly stated in this section.
- 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 – The security deposit is held by the Sublessor (not the landlord). In New York, the Housing Stability and Tenant Protection Act limits the maximum security deposit to one month’s rent, including units protected by rent control or rent stabilization.
- Return of Security Deposit – Landlords must give tenants written notice of their right to an inspection before the end of the lease, allow the tenants to repair any damage documented during the inspection, and then return the security deposit, if due, with a written list of damages, if any, no later than 14 days after the tenant has moved out.
- Utilities – The utilities to be paid by the Sublessee and those that are to be paid by the Sublessor.
- Inventory of Included Items – The list of items in the rental unit that are part of the sublease such as furniture or appliances.
- 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 – List designated areas where subtenants and their guests may park and include information about any parking fees.
- 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 New York
In New York, a sublessor may be subject to state, county, and city taxes if they sublet a property for any period of 90 days or less. For example, in New York City, taxes may include:
- New York State Sales Tax – 4%
- New York City Sales Tax – 4.5%
- Metropolitan Commuter Transportation District surcharge of 0.375%
- NYC Hotel Romm Occupancy Rate – $2 per room + 5.875%
- New York State Hotel Unit Fee – $1.50 per unit per day
