A New Jersey sublease agreement is a legal document that allows a person already renting property to rent out part or all of that property to a new tenant (or “subtenant”).
New Jersey law doesn’t prohibit subleasing for the original tenant, but it also doesn’t state whether the original tenant needs to seek official approval from the landlord. In any case, it’s best to seek written permission to promote transparency among all parties.
A landlord can refuse any subtenant request without further explanation if the original lease agreement doesn’t allow subleasing.
Laws & Requirements
Sublease and Assignment Provision Laws: No.
Landlord-Tenant Laws: New Jersey Revised Statutes, Title 2A, Chapter 18
Security Deposit Obligations: A sublessor needs to return a subtenant’s security deposit within 30 days of them moving out or within 30 days of the lease ending, depending on the situation.
Notices: A sublessor should provide 15 days’ written notice informing the subtenant to pay rent to vacate the property. If the sublessor plans not to renew the original lease agreement or the sublease agreement, they must notify the subtenant at least 30 days beforehand.
Permission to Sublet
- Laws: New Jersey state law does not specifically address subleasing.
- Explicit Written Consent: The original lease agreement usually outlines whether a tenant can sublet. The landlord’s written permission and approval are required.
- Landlord’s Right to Deny: A landlord can deny a tenant’s request to sublet the property, but they must do so for a nondiscriminatory and lawful reason.
Tax Obligations
Tax Rates
A sublessor in New Jersey may be subject to state and local taxes if they sublet a property for less than 90 days. For example, in Jersey City, these taxes may include:
- New Jersey State Sales Tax: 6.625%
- New Jersey State Occupancy Tax: 5%
- Atlantic City Occupancy Fee: 1%
Short-term Rental Tax
The New Jersey Division of Taxation imposes taxes on “transient accommodations,” which refer to short-term rentals available for less than 90 days. [1]
Statewide taxes on New Jersey short-term rentals include:
- 6.625% State Sales Tax. [2]
- 5% State Occupancy Fee. [3]
- Additionally, individual counties and cities may apply extra taxes that differ by location. For instance, properties in the Meadowlands area incur a 3% Meadowlands Regional Hotel Use Assessment.
Sample
Download a New Jersey sublease agreement template as a PDF or Word file below:
Related Documents
Rental Application
Assess whether a potential subtenant meets your criteria for subletting a property.
