A Utah sublease agreement is a formal written agreement between someone renting a property (the “sublessor”) and someone who wants to rent part or all of that property (the “subtenant”). While this arrangement doesn’t directly involve the landlord, the landlord should be aware of the situation to avoid conflict.
A tenant may choose to bring on a subtenant while they’re still living at the property, earning extra rental income. Alternatively, the original tenant may move out and use the subtenant’s rent payments to cover the rent they owe from the original lease.
Laws & Requirements
Sublease and Assignment Provision Laws: No.
Landlord-Tenant Laws: Title 57 of the Code of Utah
Security Deposit Obligations: A sublessor must return the security deposit within 30 days of the end of the sublease.
Notices: If a subtenant hasn’t been paying rent, a sublessor must give three days’ notice for them to pay rent or leave. If a sublessor plans not to renew the sublease or the original lease, they must provide 15 days’ written notice of this intent.
Permission to Sublet
- Laws: Utah law doesn’t explicitly permit or prohibit subletting.
- Explicit Written Consent: If the original lease forbids subletting, the tenant can only sublease if the landlord changes their mind and provides written consent that they’re okay with it. Even if the original lease doesn’t discuss subletting, the tenant should still obtain written permission.
- Landlord’s Right to Reject: A landlord can deny a subtenant if the reason is lawful and nondiscriminatory. For example, they can deny a subtenant who presents safety concerns or plans to bring on pets that are beyond the lease’s limits.
Tax Obligations
Lodgings Tax
- State law defines a short-term rental as any whole or portion of a residential unit that a landlord offers for occupancy for fewer than 30 days (Utah Code ยง 17-50-338).
- Short-term rentals are subject to local and state taxes.
Tax Rates
The taxes applicable to short-term rentals are as follows [1] :
- State Sales Tax: 4.85%.
- Local Sales Tax: Varies by location.
- State Transient Room Tax: 0.32%.
- Local Transient Room Tax: Varies by location.
Filing Frequency
- The due dates for filing depend on your frequency [2] :
- Monthly: January 31 for the month of December, February 28 for the month of January, etc.
- Quarterly: April 30, July 31, October 31, and January 31.
- Yearly: January 31.
- Your annual tax liability will influence your filing status [3] :
- $96,001 or more: Monthly filer with mandatory EFT payments.
- $50,001 to $96,000: Monthly filer.
- $1,001 to $50,000: Quarterly filer.
- $1,000 or less: Annual filer.
Making Payments
- You can submit your tax payments to the Utah State Tax Commission.
- If the hosting platform (like Airbnb) through which you sublet a room collects and remits taxes, you won’t have to remit the payments yourself.
Sample
Related Documents
Rental Application
Screen potential subtenants to identify whether they'll be a good fit for a rental property.
