An Alabama sublease agreement is a legal document between the original tenant (or “sublessor”) of a property and a new tenant (“subtenant” or sublessee”) who wants to move into that rental unit. The subtenant remains bound by all terms and conditions of the original lease agreement, and the original tenant is ultimately responsible if the sublessee fails to pay rent or damages the property.
Laws & Requirements
Sublease and Assignment Provision Laws: No.
Landlord-Tenant Laws: Title 35, Chapter 9A of the Code of Alabama.
Security Deposit Obligations: The security deposit must be returned within 60 days of the end of the sublease.
Notices: Sublessors must give subtenants seven days’ written notice to pay rent or leave. They also need to provide 30 days’ written notice of the intent not to renew the sublease and/or original lease.
Permission to Sublet
In Alabama, tenants need written permission from their landlord to sublet their rental.
- Laws: Alabama doesn’t have specific laws about a tenant’s right to sublet. The lease agreement determines if subletting is allowed.
- Explicit Written Consent: Yes, unless the lease states otherwise.
- Landlord’s Right to Reject: Even with permission, the landlord can reject a subtenant for reasons like bankruptcy or low credit score.
Tax Obligations
Lodgings Tax
- If you sublet a property for less than 180 days, you may have to pay the Lodgings Tax (Ala. Code § 40-26-1 (b)).
- This excludes county or city-imposed taxes. Check local sales and use tax rates for more details.
Tax Rates by County
- 5% Tax Rate: Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, Winston.
- 4% Tax Rate: All other counties (Ala. Code § 40-26-1 (a)).
Filing Frequency
State taxes are due each month on or before the 20th day (Ala. Code § 40-26-3(a)), unless you elect to file quarterly, bi-annually, or annually by February 20 of the tax year.
- Quarterly filings: Allowed if the total lodging taxes for the previous year are less than $2,400.
- Semi-annual filings: Allowed if the total lodging taxes for the previous year are less than $1,200 or if you provided no more than two 30-day accommodations in the preceding year.
- Annual filings: Allowed if the total lodging taxes for the previous year are less than $600 or if you provided no more than one 30-day accommodation in the preceding year. (Ala. Code § 40-26-3 (b)).
Making Payments
- Payments can be made at the Alabama Department of Revenue.
- If using a third-party booking platform like Airbnb, payments are often made through the platform, so you may not need to file or register separately with the Department of Revenue.
Sample
Related Documents
Rental Application
Helps screen prospective tenants to determine whether they are reliable.