Minnesota Lease Agreements | Residential & Commercial

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A Minnesota rental agreement is created between a landlord of residential or commercial space and a prospective tenant that seeks to occupy it while paying rent. Both parties will also negotiate other terms of the agreement such as utilities, fees, deposits, and other responsibilities. The agreement becomes legally binding after being signed by all parties.

Rental Application – For the use of verifying that a potential tenant is employed and has valid credit.

Table of Contents

Agreement Types (8)


Association of Realtors Lease – For use by a licensed Realtor in the State of Minnesota.

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Commercial Lease Agreement – Intended for a property with a commercial use such as retail (store, restaurant, etc.), office, or industrial types.

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Month-to-Month Lease Agreement – Must be written pursuant to § 504B.135 with the cancellation of the contract within the payment interval or three (3) months, whichever is less.

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Rent-to-Own Lease Agreement – Typical contract with an added benefit of having the choice of buying the property.

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Room Rental (Roommate) Agreement – For persons designated in a shared living arrangement.

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Standard Residential Lease Agreement – Most popular type of residential lease and is a fixed-term arrangement lasting for a 1-year period.

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Sublease Agreement – For the renting of space that is already under an agreement by a tenant.

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Termination Lease Letter – Cancels a month-to-month rental arrangement by submitting one (1) month notice to either the landlord or tenant.

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Disclosures

Covenant of Landlord and Tenant Not to Allow Unlawful Activities (§ 504B.171) – All residential lease agreements formed in the State of Minnesota must include the following words;

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) – If the landlord’s property is being foreclosed upon or a deed of cancellation has been issued a tenant may not legally sign for more than a two (2) month period.

Landlord/Manager Information (§ 504B.181) – In the lease agreement, the landlord must disclose the manager authorized to act on the premises along with an address for notices.

Lead-Based Paint Disclosure – This disclosure form is required by federal law for all tenants moving-in to properties that were constructed before 1978.

Outstanding Inspection Orders (§ 504B.195) – If the premises has any outstanding inspection orders due to a property’s code infraction it must be relayed to the tenant.

Access

According to § 504B.211, the landlord must grant at least “reasonable notice” before entering the property being leased by the tenant.

Security Deposits

Maximum – No limit.

Returning (§ 504B.211) – Within three (3) weeks of the termination of tenancy.

(Video) What are the Minnesota Rental Laws?