The Pennsylvania 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 Pennsylvania?
A Pennsylvania tenant does need to receive 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 criminal history or smoking.
Standardized Pennsylvania Sublease Agreements
Here’s what is generally included in a Pennsylvania 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 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.
- 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 original lease.
- Landlord’s Consent – This section describes how the landlord is asked to give 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.
- Liability – The sublessee will be liable for any damages to the Sublessor. The Sublessor continues to have the ultimate responsibility to pay for any damages that impact the landlord as stated in the original lease agreement.
- Authorized Occupants – This identifies the new tenant(s) and those that are authorized to live in the rental unit including any policy about short-term guests.
- Security Deposit – Pennsylvania law limits the maximum security deposit to two months’ rent during the first year and one month’s rent after the first year. For renewals of a lease longer than five years, landlords cannot increase the security deposit even if the rent increases.
- Return of Security Deposit – Landlords have 30 days from the end of the lease or the day the tenant vacates the premises, whichever is earlier, to return the security deposit with any interest due to the tenant.
- 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.
- 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.
- Smoking Policy – If smoking is restricted in the rental unit and any designated smoking areas are identified in the sublease.
- Signature: The signature and date for the Sublessor, the Sublessee, any Co-Sublessors, and Co-Sublessees (if they exist), and the signature of the Landlord giving consent to the sublease.
Tax Implications of a Sublease in Pennsylvania
Short-term rentals of 30 days or less in Pennsylvania may be subject to state and local taxes. For example, in Philadelphia, taxes may include:
- Pennsylvania State Sales Tax – 6%
- Philadelphia City Hotel Tax – 8.5%
- Commonwealth of Pennsylvania Hotel Tax – 7%
