The Oregon 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 Oregon
In Oregon, 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 prior evictions or bankruptcy.
Standard Oregon Sublease Agreements
Here’s what is generally included in an Oregon 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 – List the date the sublease begins and ends.
- Rent – List how much the rent is, when, 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.
- 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.
- Authorized Occupants – A list that identifies the new tenant(s) and those who are 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 – The 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 Oregon.
- Return of Security Deposit –Landlords must return a security deposit by first-class mail or hand-delivery to the tenant’s last known address no later than 31 days after the lease term ends and the tenant vacates the rental unit. If deductions are made, an itemized list of deductions must be included.
- 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.
- 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.
- Liability – The sublessee will be liable for any damages to the Sublessor. The Sublessor is responsible for paying for any damages as stated in the original lease agreement.
- 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 Oregon
A sublessor may be subject to the Oregon lodging tax and additional local taxes. For example, in Portland, taxes may include:
- Oregon State Lodging Tax – 1.8%
- City of Portland Transient Lodgings Tax – 6%
- Multnomah County Transient Lodgings Tax – 5.5%