A Missouri sublease agreement provides a property’s original tenant the right to rent out all or a portion of a property to a new tenant (or “subtenant”). In a sublease agreement, the original tenant becomes the sublessor, and the new tenant becomes the subtenant. A sublessor must honor the terms of the original lease and abide by the state laws regarding landlord-tenant matters.
Laws & Requirements
Sublease and Assignment Provision Laws: Mo. Rev. Stat. ยง 441.230
Landlord-Tenant Laws: Chapter 441 of the Missouri Revised Statutes
Security Deposit Obligations: A sublessor must return the security deposit within thirty days (30) of the end of the sublease. They must provide an itemized list of any damages for which the subtenant was responsible.
Notices: If a subtenant doesn’t pay rent on time, a sublessor must provide a 10-day notice to pay rent or leave the property. A sublessor must also provide thirty days (30) written notice of their intent not to renew the sublease and/or original lease.
Permission to Sublet
- Laws: Missouri state law addresses subletting, stating that if a tenant sublets any part of a property they’ve rented, the landlord retains the right to involve the lessee (the original tenant) and all sublessees (the subtenants) in any legal action pertaining to the lease.
- Explicit Written Consent: To sublease a property, the original tenant needs prior written approval from their landlord. If a tenant subleases without approval, the landlord can double the amount of rent they charge the tenant (Missouri Attorney General).
- Landlord’s Right to Reject: A landlord can ban a tenant from subleasing a property if they believe a prospective subtenant won’t make timely rent payments or will otherwise be disruptive to the property or community.
Tax Obligations
Lodgings Tax
- Each city defines its basis for a short-term rental. It’s common for a short-term rental period to be no more than 30 consecutive days, as this is the case in Kansas City and Osage Beach.
- Missouri doesn’t have a statewide lodgings tax, but each city may levy its own taxes.
Tax Rates
- State Sales Tax: 4.225% [1] .
- City Tax: Varies by city.
- County Tax: Varies by county.
Filing Frequency
The Department of Revenue outlines the requirements for filing state sales tax [2] :
- Monthly: You must report on a monthly basis if you collect more than $500 in state sales taxes.
- Quarterly: You must report on a quarterly basis if you collect between $200 and $500 in state sales taxes. The quarters are as follows:
- January through March
- April through June
- July through September
- October through December
- Annually: You must report on an annual basis if you collect less than $200 in state sales taxes.
Making Payments
- State sales tax payments are remitted to the Missouri Department of Revenue.
- You only have to file if the hosting platform through which you sublease a property doesn’t remit taxes on your behalf. For example, you wouldn’t have to remit taxes if you sublet through Airbnb, as this platform does it for you.
Sample
Related Documents
Rental Application
Ensure thorough vetting of prospective subtenants before finalizing a sublease agreement.
