A Vermont sublease agreement is a legal contract between the original tenant (sublessor) and a third party known as a subtenant. The sublease allows the subtenant to rent all or part of the property from the original tenant. The original tenant remains responsible for abiding by the original lease until it ends, while the subtenant and tenant enter a separate agreement.
Laws & Requirements
Sublease and Assignment Provision Laws: Vt. Stat. tit. 9 § 4456b
Landlord-Tenant Laws: Vermont Statutes Title 9, Chapter 137 (Residential Rental Agreements)
Security Deposit Obligations: The sublessor has 14 days from the end of the sublease to return the subtenant’s security deposit.
Notices: A sublessor must provide 14 days’ notice to quit the property or pay overdue rent. The sublessor must also provide 60 days’ written notice if they intend not to renew the original lease or sublease where the subtenant has lived at the property for two years or less. This notice period increases to 90 days if the subtenant has lived at the property for more than two years.
Permission to Sublet
- Laws: Vermont regulations allow tenants to sublet the property to a subtenant with the landlord’s permission.
- Explicit Written Consent: If the original lease doesn’t permit subletting, the tenant must acquire written notice from the landlord to allow the sublease.
- Landlord’s Right to Deny: Note that 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
Meals and Rooms Tax
- A meals and rooms tax will apply to short-term rentals, which Vermont defines as dwellings rented for at least 15 days but less than 30 days (Vt. Stat. tit. 18 § 4301).
- Rooms rented for less than 15 days and more than 30 days are treated differently for tax purposes.
Tax Rates
The meals and rooms tax rates are as follows [1] :
- State Meals and Rooms Tax: 9%.
- Local Meals and Rooms Tax: 1% (some cities levy the local option tax, so you can check with the Department of Taxes to confirm).
Filing Frequency
- The Vermont Department of Taxes will assign your filing frequency based on your meals and rooms tax liability in the prior calendar year.
- If your tax liability is over $500, you’ll file monthly. If it’s less than $500, you’ll file quarterly [2] .
- Quarterly filers owe their tax on the 25th day of April, July, October, and January. The quarters end on March 31, June 30, September 30, and December 31.
- Monthly filers owe their tax on the 25th day of each month after the month for which the tax is due.
- The exception is the 23rd of February.
Making Payments
- Payments are due to the Vermont Department of Taxes.
- Depending on how you sublease a room, you may not have to remit the tax yourself. For example, Airbnb collects and sends the meals and rooms tax to the Department of Taxes under a single tax ID number.
Sample
Related Documents
Rental Application
Review a prospective subtenant's background to determine their reliability.
