An Arizona sublease agreement is a legal contract that allows a tenant (or “sublessor”) to rent out a property they currently lease to a new tenant (or “sublessee”). The document does not override the original lease.
The original tenant is ultimately responsible for any damage and ensuring the landlord receives rent on time. If the sublessee breaches the sublease, the original tenant is held liable. You should check your original lease agreement to see if you can sublet your apartment. It’s recommended that a tenant receive permission from their landlord before subletting.
Laws & Requirements
Sublease and Assignment Provision Laws: No.
Landlord-Tenant Laws: Arizona Residential Landlord and Tenant Act.
Security Deposit Obligations: The security deposit must be returned within 14 days of the end of the sublease agreement.
Notices: In Arizona, sublessors must provide sublessees five days’ written notice to pay rent or leave. They must also give 30 days’ written notice of their intent not to renew the sublease and/or original lease.
Permission to Sublet
In Arizona, tenants need explicit, written consent from their landlord to sublet their rental.
- Laws: Arizona doesn’t have specific subletting laws. The only subletting reference is related to mobile homes (Title 33, Chapter 11, Section 33-1454).
- Explicit Written Consent: Yes, unless the original lease states otherwise.
- Landlord’s Right to Reject: Landlords allowing subleasing cannot unreasonably withhold approval, and any new prohibition policies do not apply to pre-existing approved subleases (ยง 33-1454 (B)).
Tax Obligations
Lodgings Tax
- According to the Arizona Department of Revenue, if within city limits, rentals of 30 days or less are subject to state, county, and city taxes.
- The state collects all taxes on behalf of counties and cities.
Tax Rates by County
- Short-term rental taxes in Arizona include a 5.6% state sales tax (TPT).
- Counties and cities may impose their own taxes (County TPT and City TPT), and potential hotel taxes if within city limits.
Filing Frequency
- Short-term rentals are subject to the Transaction Privilege Tax (TPT). Property owners must obtain a seasonal TPT license and file taxes based on the length of rental, with codes provided for different scenarios.
- Returns are due monthly by the twentieth day of the following month, with municipal and county taxes potentially applicable.
Making Payments
- Payments and filings can be done online through AZTaxes.gov, with additional regulations outlined for compliance and assistance available via workshops and resources provided by ADOR.
- Online lodging marketplaces like Airbnb must register with the Department of Revenue to pay state and local taxes. They must remit applicable taxes for each transaction, report taxes monthly, and are not required to identify individual operators on returns.
Sample
Related Documents
Rental Application
Gathers essential information necessary for proper tenant vetting.