The Vermont 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 Vermont?
A tenant does need a landlord’s explicit written permission to sublet in Vermont. 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 poor work history.
Standardized Vermont Sublease Agreements
A standard form can be used in Vermont to create a sublease. Here’s what is generally included in a Vermont 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 master lease.
- Rent – How much the rent is, when it needs to be paid, and how to pay it.
- Term – 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 permission 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.
- 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.
- Security Deposit – Vermont state law does not limit the maximum security deposit, but local jurisdictions can establish their own limits. The security deposit is held by the Sublessor (not the landlord).
- Return of Security Deposit – Landlords must return a security deposit by mail or hand-delivery with an itemized statement of deductions, if any, to the tenant’s last-known address no later than 14 days after the tenant vacates the rental unit.
- 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.
- Inventory of Included Items – The list of items in the rental unit that are part of the sublease such as furniture or appliances.
- Utilities – The utilities to be paid by the Sublessor and those that are to be paid by the Sublessee.
- 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.
- Liability – The sublessee will be liable for any damages to the Sublessor. The Sublessor has the ultimate responsibility to pay for any damages that impact the landlord as stated in the master 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.
- Parking Policy – List designated areas where subtenants and their guests may park and include information about any parking fees.
- 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).
Tax Implications of a Sublease
In Vermont, a sublessor may be subject to the state room tax and additional local taxes if they sublet for less than 30 days. For example, in Burlington, taxes may include:
- Vermont State Rooms Tax – 9%
- City of Burlington Gross Receipts Tax – 2%