A Minnesota lease agreement is a contract between the landlord (lessor) and the tenant (lessee).
The motive for making such a contract for both parties is to protect their rights. The main right of the landlord is to receive a monthly rent. For the tenant, the primary right is to have access to the property during the leased period without being disturbed.
The tenant would usually submit the lease application to the landlord before they started drafting the lease agreement. The rental application will have all the information about the prospective tenant, including their credit and background reports.
Only after the landlord has determined that the tenant is suitable will the negotiations and drafting of the lease agreement begin.
Minnesota Lease Agreement Required Disclosures
If you are planning to rent out a property in the state of Minnesota, it is mandatory to include the disclosures listed below in your lease agreement:
Lead-based paint disclosure. Federal law requires this disclosure for any leased property built before 1978. The landlord must inform the tenant of any lead-based paint in the leased property's construction and provide them with a pamphlet on lead-based paint hazards.
Manager and owner identification. The tenant must be informed about the names and addresses of the property manager, the owner, or the person acting on their behalf to receive notices and demands. (§ 504B.181)
Attorney General’s Handbook accessibility disclosure. The tenant must also be informed that, in case they want to obtain a copy of the Attorney General's Handbook, they can obtain one from the attorney general. This notice must be disclosed at the leased property. (§ 504B.181)
Outstanding inspection and condemnation orders disclosure. If there are any outstanding inspection orders for the leased property, the tenant must be properly informed. The landlord must disclose these orders to the tenant and specify all the code violations. (§ 504B.195)
Property foreclosure disclosure. In case the landlord receives notice of a mortgage foreclosure sale for the leased property, they must notify any prospective tenants. The lease agreement can then be signed for no longer than a two-month period. (§ 504B.151)
Landlord-tenant covenant. Every lease agreement in Minnesota must include the following covenant:
“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” (§ 504B.171)
Minnesota Lease Agreement Optional Disclosures
To secure their rights and avoid liabilities, the landlord and tenant may want to add these disclosures to the lease agreement:
Asbestos disclosure. The landlord shall inform the tenant of any asbestos material present in the leased property's construction. The tenant shall also be informed on how to use the leased property without disturbing the asbestos fibers.
Smoking disclosure. This disclosure can be included if the landlord wishes to prohibit smoking in the leased unit. The landlord can also provide information about the designated areas at the property where smoking is allowed.
Consequences of Non-Disclosure
The landlord can face legal charges and pay penalties for not providing the mandatory disclosures in the lease agreement.
In the event that the landlord fails to include the lead-based paint disclosure in the lease agreement, they can be penalized up to $19,507. (24 CFR § 30.65)
Minnesota Lease Agreement Security Deposits
Security Deposit Maximum
There is no limit on the security deposit for a leased property in Minnesota. The landlord can charge any amount they consider reasonable. Therefore, the landlord and the tenant should agree on the deposit amount before signing the lease agreement.
Security Deposit Return
The security deposit for the leased property in Minnesota has to be returned to the tenant within 3 weeks after the tenancy is over. (§ 504B.178)
If the tenant had to leave the leased property due to legal condemnation, the deposit must be returned within 5 days.
When is Rent Due in Minnesota? (Grace Period)
The rent is due on the date provided in the lease agreement.
The State of Minnesota doesn’t set a grace period for the rent payment. However, the landlord and the tenant can set a grace period for the rent payment and include it in the lease agreement.
If no grace period is set, the landlord can charge the late fee as soon as the rent is due.
Minnesota Rent Late Fees
The late fee in Minnesota cannot be higher than 8% of the monthly rent. Additionally, the landlord must disclose in the lease agreement that a late fee will be charged in the event of a late rent payment. (§ 504B.177)
Minnesota NSF Checks
There is no regulation about NSF checks in the Minnesota statutes. Therefore, the landlord and the tenant should provide a reasonable NSF fee if they wish to include such a fee in their contractual relationship.
Minnesota Landlord’s Right to Enter
The State of Minnesota only provides that the landlord must issue a “reasonable” notice to the tenant before entering the leased unit. In most cases, a 24-hour notice is considered the shortest reasonable notice before accessing the property.
Minnesota Lease Agreement FAQ
Yes, the lease agreement is a legally binding document in Minnesota.
A written lease agreement must be signed by both the landlord and the tenant to be fully binding.
The lease agreement for a property in Minnesota should follow the outline below:
Names of the contractual parties
Addresses and other details about the contractual parties
Details about the leased unit
Tenancy duration and terms for lease agreement termination
Rent amount and rent payment due date
Security deposit disclosure
Late and non-refundable fees disclosure
NSF check disclosure
Other mandatory disclosures provided by federal and state law
Date and place of the contract signature
Signatures of contractual parties
You can simply download one of the Minnesota lease agreement templates.
It is as simple as entering all the details you want to include in your lease agreement, and you are ready to go.
Make sure to inspect the property after creating the Minnesota lease agreement.
By doing the property inspection, you will double-check if any furnishings or appliances are missing from the property or need repair. This will make the moving-out procedure much easier for both the landlord and the tenant.