A Wisconsin sublease agreement is a contract that allows an original tenant (or “sublessor”) to rent out a residential property that they’re already renting to a new tenant (or “sublessee”). A sublease agreement must comply with the lease and cannot conflict its terms. The original tenant is still responsible for paying the landlord on time and remains bound under the lease.
Laws & Requirements
Sublease and Assignment Provision Laws: Wis. Stat. § 704.09
Landlord-Tenant Laws: Chapter 704 of the Wisconsin Statutes
Security Deposit Obligations: A sublessor must return the subtenant’s security deposit within 21 days of the end of the sublease.
Notices: A sublessor must give a subtenant five days’ written notice to pay rent or leave for the first violation. For the second violation in a 12-month period, a sublessor can issue a notice to vacate as long as they give 14 days’ notice. If a sublessor plans not to renew the sublease or the original lease, they must give the subtenant 28 days’ notice.
Permission to Sublet
- Laws: State laws don’t grant tenants an inherent right to sublease. A tenant can’t sublet without permission from their landlord or if the original lease agreement prohibits it.
- Explicit Written Consent: The tenant must acquire the landlord’s written consent before subletting a property.
- Landlord’s Right to Reject: Landlords reserve the right to deny subtenants if they don’t think they’d be a good fit for the property. For example, a landlord may deny a subtenant with a poor rental history, including evidence of lease violations and property damage.
Tax Obligations
Lodging Tax
- Per Wis. Stat. § 66.0615(1)(dk), a short-term rental is rented for fewer than 30 consecutive days. State sales tax and other municipal or local taxes will apply to the revenue that short-term rentals generate.
Tax Rates
- State Sales Tax: 5%.
- County Sales and Use Tax: Varies by county/city.
- Local Exposition Tax: As applicable.
- Premiere Resort Area Tax: As applicable.
- Municipal Room Tax: Varies by the municipality. It must comply with Wis. Stat. § 66.0615.
Filing Frequency
The filing frequency depends on past remittances [1] :
- If you had remittances of $3,601 or more per quarter, you must file every month but earlier than the monthly filers.
- If you had remittances of $1,201 to $3,600, you must file every month.
- If you had remittances of $601 to $1,200 per quarter, you must file every quarter.
- If you had remittances of $600 per year or less, you must file on an annual basis.
Explore the due dates for your filing status:
- Early monthly: The 20th of the following month.
- Monthly: The last day of the following month.
- Quarterly: The last day of the month following the end of the quarter.
- Yearly: January 31.
Making Payments
- You can remit payments to the Wisconsin Department of Revenue.
- You won’t have to remit payments yourself if the hosting platform (like Airbnb) collects and sends the payments accordingly.
Sample
Related Documents
Rental Application
Assess a prospective subtenant to decide if they're a suitable candidate for subletting.
