The North Dakota 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 North Dakota?
A tenant in North Dakota does need to receive a landlord’s explicit written permission to sublet. Even after consent is given, a landlord still has the right to reject a subtenant if they are unqualified, such as for smoking or having a low credit score.
Standardized North Dakota Sublease Agreements
A standard form can be used in North Dakota to create a sublease. Here’s what is generally included in an North Dakota 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.”
- 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.
- Rental Unit Location – The address for the rental unit as described in the original lease.
- 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 – This identifies the new tenant(s) and those authorized to live in the rental unit including any policy about short-term guests.
- Security Deposit – North Dakota law limits the maximum security deposit to one month’s rent. However, if the tenant has a felony conviction or a judgment that they violated a lease agreement, two months’ rent may be collected. This security deposit is held by the Sublessor (not the landlord).
- Return of Security Deposit – North Dakota landlords have 30 days after the lease term ends and the tenant vacates the rental unit to return any unused portion of the security deposit.
- Inventory of Included Items – The list of items in the rental unit that are part of the sublease such as furniture or appliances.
- Utilities – The utilities to be paid by the Sublessee and those that are to be paid by the Sublessor.
- 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.
- Smoking Policy – Alabama law permits the designation of a property as a non-smoking area. If smoking is restricted in the rental unit, any designated smoking areas are identified in the sublease.
- Landlord’s Consent – This section describes how the landlord is asked to give consent (if consent 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 North Dakota
In North Dakota, a sublessor may be subject to sales and lodging taxes if they sublet a property for less than 30 days. For example, in Fargo, taxes may include:
- North Dakota State Sales Tax – 5%
- Cass County Sales Tax – .05%
- The City of Fargo Sales Tax – 2%
- The City of Fargo Lodging Tax – 3%