Massachusetts Sublease Agreement Template

A Massachusetts sublease agreement is a contract between a tenant already renting a piece of property (the “sublessor”) and a new tenant (the “sublessee”) who wants to lease part or all of the property.

The landlord must first approve a sublease, which can only exist if the original lease is in effect. Depending on the rules outlined in the sublease agreement, it can also last for a shorter period. The sublessor, whose name remains on the lease, is ultimately responsible for the premises if damaged or unpaid for by the sublessee.

Laws & Requirements

Sublease and Assignment Provision Laws: No.

Security Deposit Obligations: A security deposit must be returned within 30 days of the end of the sublease.

Notices: Sublessors must give subtenants 14 days’ written notice to pay rent or leave. They must also provide 30 days’ written notice of their intent not to renew the sublease and/or original lease.

Permission to Sublet

Tenants are not granted the right to sublease their rental units by default. Instead, they need to obtain permission from their landlord.

• Laws: Massachusetts does not have specific laws regarding subleases. The lease agreement determines if the tenant is allowed to sublet.
• Explicit Written Consent: Yes, unless the original lease states otherwise.
• Landlord’s Right to Reject: Even without a prohibition clause, landlords can screen potential subtenants and deny future sublease requests.

Tax Obligations

Lodgings Tax

• The state’s room occupancy excise tax for short-term rentals does not apply to tenancies at will or month-to-month leases (830 CMR 64G.1.1 (4)(a)(9)).
• Subleases that are month-to-month or at-will are likely exempt from short-term rental taxes, but fixed-term subleases of 31 days or less may be taxed.

Tax Rates by County

• The state room occupancy tax rate is 5.7%, with local taxes up to 6% (6.5% in Boston), plus an additional 2.75% in some cities.
• Sublessors may be subject to state and additional city taxes for sublets of 90 days or less.

Filing Frequency

• File returns each assigned period, even if no rental income was earned (“zero dollar returns”).
• Monthly returns are due on the 30th of the month following the filing period.

Making Payments

• Taxes can be paid online via the Massachusetts Department of Revenue.
• Credit card payments are accepted but may incur convenience fees.