A Kentucky sublease agreement allows an original tenant (“sublessor”) to rent out the property to a new tenant (“sublessee” or “subtenant”). Sublessees are subject to the terms of the original lease.

At the same time, the sublessor is responsible for ensuring that rent is paid on time and that the property is not damaged.

Kentucky tenants are allowed to sublet without explicitly obtaining permission from landlords. However, lease agreements may contain clauses that mandate landlord approval before subletting. Be sure to check your original lease before creating a sublease.

Sublease and Assignment Provision Laws: Ky. Rev. Stat. § 383.180.

Landlord-Tenant Laws: Chapter 383 of the Kentucky Revised Statutes.

Security Deposit Obligations: In Kentucky, a sublessor can retain the security deposit after 30 days of the end of the sublease if the tenant owes rent and doesn’t demand a return or after 60 days if the tenant doesn’t owe rent and doesn’t demand a return after receiving notification of how to receive the deposit.

Notices: A sublessor must give a subtenant seven days’ written notice to pay rent or leave. They also must provide 30 days’ written notice of their intent not to renew the sublease and/or original lease.

Permission to Sublet

In Kentucky, tenants with a lease term of less than two years need written permission to sublease. For other types of tenancies, subleasing depends on the original lease’s terms.

Laws: K.R.S. § 383.180
Explicit Written Consent: Subleasing is allowed with written consent if the original lease is less than two years old. With other tenancy types, sublease consent depends on the lease terms.
Landlord’s Right to Reject: Even with permission, the landlord can reject a subtenant for reasons such as bankruptcy or a low credit score.

Tax Obligations

Lodgings Tax

6% State Sales Tax
1% State Transient Room Tax
Local room/lodgings taxes (if applicable)

Filing Frequency

In Kentucky, you will be required to file and remit sales tax either monthly, quarterly, or annually (calendar year or fiscal annual).
Kentucky sales tax returns are always due on the 20th of the month following the reporting period.

Making Payments

Payments can be made at the Kentucky Department of Revenue.
If you are using a third-party booking platform such as Airbnb, payments are typically processed through the platform. Therefore, you may not need to separately file or register with the Department of Revenue.