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North Dakota Sublease Agreement

A North Dakota sublease agreement is a legal contract that allows a tenant, referred to as the “sublessor,” to rent out all or a portion of their rental property to another tenant, known as the “sublessee” or “subtenant”.  This arrangement is typically utilized when a tenant wishes to bring in a roommate or move out before the end of their lease. 

North Dakota Sublease Agreement

North Dakota Sublease Agreement

Right to Sublet

North Dakota law does not explicitly allow or prohibit subletting; rather, the ability to sublet is determined by the tenant’s lease agreement. Tenants should carefully review their lease to ascertain whether subletting is permitted. If the lease does not explicitly grant the right to sublet, tenants must obtain written permission from their landlord before proceeding. Even with consent, landlords retain the right to reject a subtenant based on qualifications, such as credit history or smoking habits.

Standardized North Dakota Sublease Agreements

A standard North Dakota sublease agreement typically includes the following elements:

  • Names of the Parties: Identification of the sublessor and sublessee.
  • Term: The start and end dates of the sublease.
  • Rent: Amount of rent, payment due dates, and payment methods.
  • Rental Unit Location: Address of the rental unit as per the original lease.
  • Liability: The sublessee’s responsibility for damages, with the sublessor ultimately liable to the landlord.
  • Authorized Occupants: Identification of new tenants and any policies regarding short-term guests.
  • Security Deposit: Maximum security deposit limited to one month’s rent, or two months if the tenant has a felony conviction or lease violation.
  • Return of Security Deposit: Landlords must return any unused portion of the security deposit within 30 days after the lease term ends.
  • Inventory of Included Items: List of items included in the rental unit.
  • Utilities: Specification of which utilities are paid by the sublessee and which are paid by the sublessor.
  • Lead-Based Paint Notice: Required if the rental unit was built before 1978.
  • Master Lease Inclusion: A copy of the master lease must be attached, with any exceptions noted.
  • Disputes: Procedures for resolving disputes, potentially including mediation or arbitration.
  • General Conditions: Statement that the written sublease contains all agreements and can only be modified in writing.
  • Smoking Policy: Designation of smoking areas, if applicable.
  • Landlord’s Consent: Description of how the landlord’s consent is obtained.
  • Signature: Signatures and dates for all parties involved.

Tax Implications of a Sublease in North Dakota

In North Dakota, sublessors may be subject to sales and lodging taxes if they sublet a property for fewer than 30 consecutive days. The following taxes may apply:

  • State Sales Tax: 5%
  • Local Lodging Tax: Up to 2% (varies by locality)
  • County and City Sales Tax: Varies by locality

Tenants should be aware that they are responsible for acquiring, collecting, and remitting these taxes unless they have an agreement with a lodging marketplace that assumes this responsibility.

Statutes

FAQs

Yes, in North Dakota, you need to obtain explicit written permission from your landlord to sublet your apartment. Even if your lease does not explicitly prohibit subletting, it’s advisable to seek permission to avoid any potential issues.

A North Dakota sublease agreement should include the names of the parties, the term of the sublease, rent details, the rental unit’s location, liability clauses, authorized occupants, security deposit terms, and a lead-based paint notice if applicable. It’s also important to attach a copy of the master lease.

If you sublet a property in North Dakota for less than 30 consecutive days, you may be subject to sales and lodging taxes. This includes a 5% state sales tax and local lodging taxes that can vary by locality.

In North Dakota, the maximum security deposit a sublessor can charge is typically one month’s rent. However, if the tenant has a felony conviction or a history of lease violations, the deposit can be up to two months’ rent.

In North Dakota, a landlord must return any unused portion of a security deposit within 30 days after the lease term ends and the tenant vacates the rental unit.

If your landlord refuses to approve your subtenant, you will not be able to proceed with the sublease. Landlords can reject a subtenant based on qualifications such as credit score or potential risks to the property.

Yes, subletting is legal in North Dakota, but it is subject to the terms of your lease. If your lease does not allow subletting, you cannot sublet the property without the landlord’s permission.

If you plan not to renew the sublease, you must provide your sublessee with 30 days’ written notice. Additionally, if the sublessee fails to pay rent, you must give them three days’ written notice to pay or vacate.