A Pennsylvania sublease agreement is a legal document that a tenant (or “sublessor”) enters into with a third party (or “sublessee”). This agreement allows the sublessor to rent the property to the sublessee for some or all of the original lease term.
When a sublease agreement is in place, the terms of the original lease contract continue to apply to both the actual tenant and the sublessee. This arrangement means that even if the sublessee fails to pay the rent, the original tenant still owes the landlord money for rent.
Laws & Requirements
Sublease and Assignment Provision Laws: ยง 105 of the Pennsylvania Landlord and Tenant Act of 1951
Landlord-Tenant Laws: The Pennsylvania Landlord and Tenant Act of 1951
Security Deposit Obligations: A sublessor must return the full security deposit to a subtenant within 30 days of the end of the sublease. They may have to withhold some of the deposit for damages or unpaid rent, but they must submit an itemized list detailing the damages.
Notices: A sublessor must give a 10-day written notice for a subtenant to pay rent or leave the premises. They must also provide a 30-day notice if they intend not to renew a year-to-year lease or a 15-day notice if the sublease term is less than one year.
Permission to Sublet
- Laws: Pennsylvania law does not address the practice of subletting; generally, a tenant’s ability to sublet is determined by the terms of their lease agreement.
- Explicit Permission: If the lease does not mention subletting or explicitly prohibits it and you want to sublet, you must obtain written permission from the landlord.
- Landlord’s Right to Refuse: A landlord can lawfully refuse a subtenant before granting consent.
Tax Obligations
Lodging Taxes
In Pennsylvania, if you sublet a property for less than 30 consecutive days, you are generally required to pay a lodging tax. Additionally, various cities and counties within Pennsylvania may impose their own local occupancy taxes on short-term rentals.
Tax Rates
The following taxes apply to short-term rentals in Pennsylvania:
- State Sales Tax: 6% [1]
- County/Local Sales Tax: Varies by county. For example, Philadelphia imposes an additional 2% sales tax.
- State Lodging Tax: Generally 6% for lodging provided for fewer than 30 days.
- Local Lodging Tax: Rates vary by municipality. For example, Allegheny County imposes a 7% lodging tax [2] , while Philadelphia imposes an 8.5% city-specific lodging tax. [3]
Filing Frequency
Sales tax due dates in Pennsylvania depend on your filing frequency and can be subject to changes: [4]
- Monthly: Due on the 20th day of the month following the end of the reporting period.
- Quarterly: Due on the 20th day of the month after the end of the quarter (April 20, July 20, October 20, or January 20).
- Semi-Annually: Due on August and February 20.
Making Payments
You must register to pay sales and use tax and local occupancy tax with the Pennsylvania Department of Revenue. You can register online to receive a sales tax license and instructions on filing your lodging taxes.
If you host a short-term rental through a platform like Airbnb, the platform might handle tax collection and remittance on your behalf. However, you are responsible for ensuring compliance with all relevant tax obligations.
Sample
View a Pennsylvania sublease agreement template and download it as a PDF or Word file below:
Related Documents
Rental Application
Assess if a potential subtenant satisfies the property's subletting requirements.
