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Updated April 03, 2024

A Tennessee sublease agreement is used when a tenant wants to lease part or all of their rented home to another person. The tenant may wish to take on a roommate or move out entirely before their lease expires. In a sublease arrangement, the tenant (sub-lessor) acts as the landlord to the additional renter (sub-lessee) while remaining responsible for the original lease for the remainder of its duration.

Right to Sublet

Tennesse law does not automatically grant a tenant the right to sublet. Typically, the lease will state that the landlord’s permission is required before a sublease arrangement can occur. If the lease is unclear about subleasing or does not address the subject, it is recommended that the tenant contact their landlord for more information.

When a landlord’s permission to sublease is required, a Landlord Consent Form is a simple way to get it in writing.

Short-Term (Lodgings) Tax

In Tennessee, several taxes apply to accommodations like rooms, homes, cabins, and condominiums that are rented to transient guests for a period of less than 90 days. The overall effective tax rate on these short-term rentals will vary by location because local taxes differ between cities.

Tennessee short-term rental taxes:^[1]

7% state sales tax
1.5%-2.75% local sales tax (varies by city)
State Business Tax (on rentals of less than 180 days)
Local Business Tax (if imposed by the municipality)

Local Occupancy Taxes may also be imposed by individual municipalities but only if the rental is being offered through a short-term rental unit marketplace for a duration of fewer than 30 continuous days.