Minnesota Sublease Agreement

Last Updated: December 24, 2023 by Jessica Menefee

The Minnesota sublease agreement is a legal contract that allows a tenant to rent out all or a portion of the property to a subtenant in exchange for regular payments.

Does a Tenant Need the Landlord’s Permission to Sublet in Minnesota?

In Minnesota, a tenant does need a landlord’s explicit written permission to sublet. Even if permission to sublet is granted, a landlord is allowed to screen potential subtenants and deny them for legally acceptable reasons such as prior evictions or a poor job history.

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Standard Sublease Agreements in Minnesota

A standard form can be used in Minnesota to create a sublease. Here’s what is generally included in a Minnesota sublease agreement:

  • The Names of the Parties – The original tenant under the lease is named in the sublease and is called the “Sublessor.” The third-party that is subleasing the rental unit is named in the sublease and is called the “Sublessee”.
  • Rental Unit Location – The address for the rental unit as described in the original lease.
  • Term – State the exact date of the sublease beginning and ending date.
  • Rent – How much the rent is, when it needs to be paid, and how to pay it.
  • Liability – The sublessee will be liable for any damages to the Sublessor. The Sublessor continues to have the ultimate responsibility to pay for any damages that impact the landlord as stated in the original lease agreement.
  • Authorized Occupants – A list of the new tenant(s) and those authorized to live in the rental unit including any policy about short-term guests.
  • Security Deposit – Minnesota state law does not limit the maximum security deposit, but local jurisdictions can establish limits. The security deposit is held by the Sublessor (not the landlord).
  • Return of Security Deposit – Minnesota landlords have 21 days after the lease term ends and the tenant provides a mailing address (or other delivery instructions) to return any remaining portion of the security deposit plus interest. However, if the lease ends because of condemnation, the landlord must return the security deposit within 5 days after the tenant vacates the rental unit.
  • Lead-Based Paint Notice – Under Federal law, if the rental unit’s premises were built before 1978, the Sublessee must be given a written warning notice, called a Lead-Based Paint Disclosure.
  • Master Lease Inclusion – A copy of the Master Lease is attached to the sublease. If any exceptions in the Master Lease are not included they should be clearly stated in this section.
  • Disputes – A description of how disputes between the Sublessor and Sublessee are to be settled, which may include mediation and binding arbitration to avoid more expensive legal proceedings.
  • General Conditions – A statement that the written sublease agreement contains all of the agreements between the parties and can only be modified by written consent of the parties to the agreement.
  • Inventory of Included Items – The list of items in the rental unit that are part of the sublease (furniture or appliances).
  • Utilities – The utilities to be paid by the Sublessee and those that are to be paid by the Sublessor.
  • Smoking Policy – If smoking is restricted in the rental unit and any designated smoking areas are identified in the sublease.
  • Landlord’s Consent – This section describes how the landlord is asked to give permission (if permission is not already included in the Master Lease). Tenants may create a signed sublease that is conditional on being accepted by the landlord before the sublease becomes effective.
  • Signature: The signature and date for the Sublessor, the Sublessee, any Co-Sublessors, and Co-Sublessees (if they exist).

Tax Implications of a Sublease in Minnesota

In Minnesota, a sublessor may be subject to state sales tax, city sales tax, and lodging tax if they sublet for less than 30 days. Taxes fees vary by location. For example, in Minneapolis, taxes include:

  • Minnesota State Sales Tax – 6.85%
  • Hennepin County Sales Tax – 0.15%
  • Minneapolis Sales Tax – 3%
  • Transit Improvement Sales Tax – 0.25%
  • Minneapolis Entertainment Tax – 3%