A Texas sublease agreement allows the original tenant to rent out all or part of a property to a new tenant or subtenant. The subtenant will be subject to the terms and conditions of the original lease agreement. However, the actual tenant remains liable for any damages to the property, the payment of rent, and any breach of the original lease.
Laws & Requirements
Sublease and Assignment Provision Laws: Tex. Prop. Code § 91.005
Landlord-Tenant Laws: Texas Statutes Property Code Title 8, Chapter 92 – Residential Tenancies
Security Deposit Obligations: A sublessor must return a subtenant’s security deposit within 30 days of the end of the sublease.
Notices: A sublessor must give a subtenant three days’ written notice to pay rent or leave. If they plan not to renew the sublease and/or the original lease, they must give the subtenant at least 30 days’ advance notice.
Permission to Sublet
- Laws: Texas law bans subletting unless the landlord allows it.
- Written Consent: The tenant must obtain explicit written consent from the landlord before they can sublet a property. This rule applies even if the lease doesn’t cover subletting at all.
- Landlord’s Right to Refuse: The landlord can refuse a subtenant for lawful reasons. For example, suppose the subtenant has a low credit score or income. A landlord can choose to not allow them to enter a subletting arrangement because they’re fearful they won’t make timely payments in full.
Tax Obligations
Lodging Taxes
- In Tennessee, there may be state and local hotel occupancy taxes.
- The state hotel occupancy tax applies to rentals lasting fewer than 30 days and costing $15 or more each day (Tex. Tax Code § 156.051 and Tex. Tax Code §156.101).
- The local hotel occupancy tax may apply to the rental of a room costing $2 or more each day [1] .
Tax Rates
Filing Frequency
- You can file monthly or quarterly.
- Monthly filing is due on the 20th day of the month after the end of each calendar month. For example, suppose you want to file for June activity. In this case, you’d have to file by July 20.
- Quarterly filing (only if you qualify for it) is due on the 20th day of the month after the end of the calendar quarter. For example, suppose you want to file for second quarter activity. The due date would be July 20.
Making Payments
- Taxes are paid to the Texas Comptroller.
- The reporting and payment requirements you must follow depend on the amount of taxes you paid in the prior state fiscal year, running from September 1 to August 31.
- Hosting through a platform like Airbnb may mean that you don’t have to remit the taxes yourself, as they’re collected at the time the party pays for their room.
Sample
Related Documents
Rental Application
Assess a subtenant's reliability by collecting information on their rental history and current income.
