Start a comprehensive and legally binding Minnesota lease agreement to rent real estate you own to one or more tenants. Get guidance on each step and expert tips with the help of our contract maker.
Last Update January 22nd, 2023
- What is a Minnesota Residential Lease Agreement
- Types of Minnesota Lease Agreements
- Disclosures for Minnesota Lease Agreements
- Minnesota Lease Agreement Laws
- Minnesota Residential Lease Agreement Sample
- FAQs About Minnesota Lease Agreement
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What is a Minnesota Residential Lease Agreement
An MN lease agreement is a legally binding contract between a landlord and a tenant. This is written to conform to state laws where the property is located. In Minnesota these allow both parties to comply with a series of set terms for a specified number of months or years.
A lease agreement should contain the following details:
How long the tenant may legally reside in the property
How much rent should be paid
Information about the security deposits necessary
When rental installments are due
Any additional costs that must be serviced by the tenant
The rules regarding the proper use of the property
Situations that constitute lease violation eviction procedures
Types of Minnesota Lease Agreements
There are many types of Minnesota lease agreement forms that can be used to manage and legally bind many different types of rental situations. They allow landlords to rent out various types of property they might have and for tenants to find the best kind of tenancy for their needs.
The most common types of lease agreements in Minnesota include:
Standard residential lease agreements: Under a standard Minnesota lease agreement both the landlord and tenant commit to a fixed set of terms that last for a series of months or years.
Lease with option to purchase (lease to own) agreements: Lease agreements with rent-to-own options are designed for tenants that wish to buy the property they are renting. This requires them to pay a sum of money each month, in addition to rent, to cover the costs of the principal.
Month-to-month rental agreements: Month-to-month MN lease agreements will often have similar basic terms to standard residential lease contracts. However, they differ as they can be renewed or ended on a month-by-month basis. Their terms may also be flexibly altered each month.
Commercial lease agreements: Commercial leases are provided by landlords of retail property to tenants that intend to use the real estate to run a business.
Room rental agreements: In rental properties with shared living areas a room rental agreement can be used to rent a singular bedroom.
Sublease Agreement: A Minnesota sublease agreement allows tenants to reassign or ‘sublease’ the property to another individual. This requires the property landlord’s permission and must be specifically allowed in the original lease.
Disclosures for Minnesota Lease Agreements
Minnesota lease agreements must contain a few disclosures and addendums when they are completed and signed. This is to properly inform the tenant of any health risks or potential issues with the property or details about how the property is managed that they must be aware of.
These essential additions include the following:
Covenant of landlord and tenant not to allow unlawful activities (§ 504B.171): Lease agreements in Minnesota must contain the following text:
Landlord and tenant promise that neither will unlawfully allow within the premises, common areas, or curtilage of the premises (property boundaries): controlled substances, prostitution or prostitution-related activity; stolen property or property obtained by robbery; or an act of domestic violence, as defined by MN Statute Section 504B.206 (1)(e), against a tenant, licensee, or any authorized occupant. They further promise that the aforementioned areas will not be used by themselves or anyone acting under their control to manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a controlled substance in violation of any criminal provision of Chapter 152.
Financial Distress (§ 504B.151): This provides clarification on what happens if the landlord is to be foreclosed upon. It explains that a tenant cannot legally sign an agreement for longer than 2 months with the landlord if this occurs.
Landlord/manager information disclosure (§ 504B.181): The agreement must contain a section or addendum that informs the tenant of the contact information of the main person who can be called upon for any repairs or issues with the property. This may be the landlord or someone appointed to act on their behalf.
Lead paint disclosure: If the rental unit is in a building constructed before 1978, the landlord or their agent must disclose whether lead paint can be found on the property and must provide safety information for any located on the premises.
Outstanding inspection orders (§ 504B.195): Any outstanding inspection orders due to a property code infringement must be explained to the tenant in the lease before they sign.
Minnesota Lease Agreement Laws
An MN lease agreement must be written and signed within the laws of Minnesota state, otherwise, it will be legally contestable and can be declared invalid and block either party from recourse if a violation is committed. These will police how you start and end the contract and control what procedures you can reasonably ask a tenant to follow.
The most important laws to consider when you are renting a property in Minnesota include:
Security deposits: There are no limits on how much a landlord in Minnesota can charge as a security deposit. However, the amount kept from the tenant must be returned within 3 weeks of the contract termination date and minus any deductions. The landlord must also pay 3-4% of interest on the deposit (§ 504B.178).
Landlord’s right to enter: Landlords can enter the rental property without giving notice if it’s for business or emergency purposes (§ 504B.211). However, it is recommended to give tenants a minimum of 24 hours’ notice before entering under for other reasons.
Minnesota Residential Lease Agreement Sample
Before beginning the process of creating a residential lease agreement in Minnesota it is sensible to review an example document first. Use our MN lease agreement sample below to find out more about the structure and contents of a fully-fledged rental contract.
FAQs About Minnesota Lease Agreement
It is important to carefully prepare a Minnesota lease agreement to suit the needs of the landlord and tenant exactly. To help demystify the process a little simply review our FAQs below to learn more about the specificities of rental contracts in Minnesota.
How to Get a Lease Agreement in Minnesota?
It is possible to create a Minnesota lease agreement completely online. Using our residential lease agreement maker you can tailor your document for your specific needs and take advantage of professional templates and expert tips.
Lease Agreement or Rental Agreement?
There is a key difference between a Minnesota lease agreement and a Minnesota rental agreement, which is the length of duration that they each cover.
Lease agreements are normally longer-term arrangements that can last several months or even years, in which their terms remain fixed. Rental agreements on the other hand are shorter-term in nature but are more flexible and may be changed on a weekly or monthly basis.
How to Write an MN Lease Termination Letter?
If either the landlord or tenant for any reason needs to terminate a Minnesota lease agreement early, they must provide the correct amount of notice in a written MN lease termination letter.
This letter needs to contain the following information:
The name of the landlord and the tenant
The date the letter has been written and signed
The name and address of the property in question
Information explaining why the tenancy needs to be terminated early
The reason the lease is being broken
The date that the resident will vacate the property
Acknowledgment of any penalties that will be incurred
Signature of the signing party