A New York sublease agreement is a document that allows an initial tenant (a sublessor) to rent out the property to another tenant (a sublessee), either in full or in part. In New York, an original tenant has the right to sublet the property if they have permission from the landlord.
The initial tenant remains bound under the lease terms, so if the sublessee breaches the lease, the initial tenant is liable. A sublessor must honor the terms of the sublease agreement (as well as the original lease) and follow all New York laws regarding the eviction process, security deposits, and all other landlord-tenant matters.
Laws & Requirements
Sublease and Assignment Provision Laws: NY Real Prop L § 226-B
Landlord-Tenant Laws: NY Real Property L Article 7 (Landlord and Tenant)
Security Deposit Obligations: A sublessor must return a subtenant’s security deposit in full within 14 days if the sublessor doesn’t have any justified reasons to withhold it.
Notices: A sublessor must provide a subtenant with 14 days’ written notice to pay rent or leave. They must also notify the subtenant at least 30 days in advance if they plan not to renew either the original lease or the sublease.
Permission to Sublet
- Laws: By default, New York law does not grant tenants the right to sublease. Local laws may impose stricter subletting limits. For example, New York City strictly regulates subleases under 30 days, with heavy fines for repeat violations.
- Explicit Written Consent: Tenants must obtain written permission from the landlord before arranging a sublet with a third party. [1]
- Landlord’s Right to Deny: A landlord can prevent a tenant from subletting, but only if the denial is based on reasonable grounds. [2]
Tax Obligations
Tax Rates
In New York, subletting a property for 90 days or less may incur state, county, and city taxes. For example, in New York City, taxes include:
- New York State Sales Tax: 4%. [3]
- New York City Sales Tax: 4.5%.
- Metropolitan Commuter Transportation District surcharge: 0.375%.
- NYC Hotel Room Occupancy Rate: $2 per room + 5.875%.
- New York State Hotel Unit Fee: $1.50 per unit per day.
- County taxes (varies by county).
- Local governments may have additional requirements. For example, New York City requires short-term renters to register with the mayor’s office for a $145 fee. [4]
Sample
View a New York sublease agreement template and download it as a PDF or Word file:
Related Documents
Rental Application
Evaluate whether a prospective subtenant satisfies your subletting requirements for the property.
