A Massachusetts sublease agreement is a contract between a tenant already renting a piece of property (the “sublessor”) and a new tenant (the “sublessee”) who wants to lease part or all of the property.
The landlord must first approve a sublease, which can only exist if the original lease is in effect. Depending on the rules outlined in the sublease agreement, it can also last for a shorter period. The sublessor, whose name remains on the lease, is ultimately responsible for the premises if damaged or unpaid for by the sublessee.
Laws & Requirements
Sublease and Assignment Provision Laws: No.
Landlord-Tenant Laws: Part II of the General Laws of Massachusetts (Real and Personal Property and Domestic Relations).
Security Deposit Obligations: A security deposit must be returned within 30 days of the end of the sublease.
Notices: Sublessors must give subtenants 14 days’ written notice to pay rent or leave. They must also provide 30 days’ written notice of their intent not to renew the sublease and/or original lease.
Permission to Sublet
Tenants are not granted the right to sublease their rental units by default. Instead, they need to obtain permission from their landlord.
- Laws: Massachusetts does not have specific laws regarding subleases. The lease agreement determines if the tenant is allowed to sublet.
- Explicit Written Consent: Yes, unless the original lease states otherwise.
- Landlord’s Right to Reject: Even without a prohibition clause, landlords can screen potential subtenants and deny future sublease requests.
Tax Obligations
Lodgings Tax
- The state’s room occupancy excise tax for short-term rentals does not apply to tenancies at will or month-to-month leases (830 CMR 64G.1.1 (4)(a)(9)).
- Subleases that are month-to-month or at-will are likely exempt from short-term rental taxes, but fixed-term subleases of 31 days or less may be taxed.
Tax Rates by County
- The state room occupancy tax rate is 5.7%, with local taxes up to 6% (6.5% in Boston), plus an additional 2.75% in some cities.
- Sublessors may be subject to state and additional city taxes for sublets of 90 days or less.
Filing Frequency
- File returns each assigned period, even if no rental income was earned (“zero dollar returns”).
- Monthly returns are due on the 30th of the month following the filing period.
Making Payments
- Taxes can be paid online via the Massachusetts Department of Revenue.
- Credit card payments are accepted but may incur convenience fees.
Sample
Related Documents
Rental Application
Helps landlords and property owners identify reliable tenants.