The Wisconsin 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 Wisconsin?
Tenants do have to get the landlord’s explicit written permission to sublet in Wisconsin. 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 having a poor work history.
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Standardized Wisconsin Sublease Agreements
A standard form can be used in Wisconsin to create a sublease. Here’s what is generally included in a Wisconsin 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 – 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 master 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.
- 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.
- Authorized Occupants – This identifies the new tenant(s) and those authorized to live in the rental unit including any policy about short-term guests.
- 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 is responsible for paying for any damages that impact the landlord as stated in the master lease agreement.
- 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 the amount of rent that can be collected upfront in Wisconsin.
- Return of Security Deposit – Wisconsin landlords have 21 days after the tenant vacates the rental unit or is evicted to return any remaining portion of a security deposit.
- Inventory of Included Items – The list of items in the rental unit that are part of the sublease which may include appliances or furniture.
- 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.
- Parking Policy – A description of where the subtenant and any guests can park on the property, including any fees.
- Signature: The signature and date for the Sublessor, the Sublessee, any Co-Sublessors, and Co-Sublessees (if they exist).
Tax Implications of a Wisconsin Sublease
In Wisconsin, sublessors may be subject to state and local taxes if they sublet for less than 30 days. For example, in Milwaukee, taxes may include:
- Wisconsin State Sales Tax – 5%
- Milwaukee County Basic Room Tax – 3%
- City of Milwaukee Room Tax – 7%