Minnesota Residential Lease Agreement

Important Information for Minnesota Landlords

Minnesota Rental Law Highlights

Security Deposits (Minn. Stat. § 504B.175 to 504B.178)

• Maximum Amount: No statutory limit (market determines)
• Return Timeline: 21 days after tenant vacates (Minn. Stat. § 504B.178)
• Itemized Statement: Required if any deductions are made
• Interest Required: Yes, on deposits held more than one year at 1% annually (Minn. Stat. § 504B.175)
• Move-In Inspection: Strongly recommended to document condition
• Normal Wear and Tear: Cannot deduct for ordinary deterioration
• Penalties: Actual damages plus punitive damages up to $500 for willful violation (Minn. Stat. § 504B.178)

Rent and Rent Increases (Minn. Stat. § 504B.135, 504B.206)

• Grace Period: No statutory grace period required
• Late Fees: Maximum 8% of overdue rent (Minn. Stat. § 504B.206)
• NSF Fee: Maximum $30 for returned checks (Minn. Stat. § 604.113)
• Rent Increase Notice: No statutory minimum for month-to-month; reasonable notice customary (30 days)
• Fixed Term: Cannot increase rent during lease term unless specified
• Rent Control: St. Paul has rent control; Minneapolis has rent stabilization (local ordinances apply)

Required Disclosures (Minn. Stat. § 504B.195)

• Lead paint disclosure (pre-1978 properties) – Federal requirement
• Landlord’s or authorized agent’s name and address (Minn. Stat. § 504B.195)
• Move-in condition documentation (strongly recommended)
• Building code violations if cited by local authorities (Minn. Stat. § 504B.195)
• Smoke detector and carbon monoxide detector information
• Any known defects or issues with the property

Eviction and Termination (Minn. Stat. § 504B.135, 504B.285, 504B.291)

• 14-Day Notice: For nonpayment of rent (Minn. Stat. § 504B.135(a))
• 30-Day Notice: For lease violations (breach of lease) (Minn. Stat. § 504B.135(b))
• 14-Day Notice: To terminate month-to-month tenancy (Minn. Stat. § 504B.135(e))
• Court Process Required: Must file eviction action in district or county court
• No Self-Help: Lockouts and utility shutoffs are illegal (Minn. Stat. § 504B.225, 504B.375)

Landlord Obligations (Minn. Stat. § 504B.161)

• Habitability: Must maintain premises in fit and habitable condition (Minn. Stat. § 504B.161)
• Essential Services: Heat, water, hot water, electricity must be functional
• Compliance: Must comply with applicable building and housing codes (Minn. Stat. § 504B.161)
• Structural Integrity: Maintain in safe condition
• Smoke Detectors: Required in all dwelling units (Minn. Stat. § 299F.50)
• Carbon Monoxide Detectors: Required in units with fuel-burning appliances (Minn. Stat. § 299F.50)
• Common Areas: Keep clean and in good repair
• Repairs: Make necessary repairs within reasonable time

Entry Requirements (Minn. Stat. § 504B.211)

• Notice Required: Reasonable notice required (notice period not specified by statute; 24 hours customary)
• Reasonable Times: Entry during reasonable hours only
• Emergency Exception: May enter without notice in emergency
• Permitted Purposes: Inspection, repairs, showing to buyers/tenants

Tenant Rights and Protections (Minn. Stat. § 504B.171, 504B.381 to 504B.395)

• Quiet Enjoyment: Right to peaceful possession without interference
• Privacy Rights: Reasonable notice before entry
• Security Deposit Protection: 21-day return with itemization; interest required
• Repair Rights: Statutory repair remedies (Minn. Stat. § 504B.381 to 504B.395)
• Retaliation Protection: Protections against retaliation (Minn. Stat. § 504B.441)
• Military Service: SCRA protections for active duty members

Minnesota-Specific Considerations

Interest on Security Deposits (Minn. Stat. § 504B.175)

• Must pay interest on deposits held more than one year
• 1% simple interest annually
• One of few states requiring interest on deposits
• Interest becomes tenant’s property

8% Maximum Late Fee (Minn. Stat. § 504B.206)

• Maximum late fee is 8% of overdue rent
• Statutory limit on late fees
• One of few states with specific late fee cap
• Cannot charge additional fees beyond 8%

$30 Maximum NSF Fee (Minn. Stat. § 604.113)

• Maximum $30 for returned checks
• Statutory limit on NSF fees

21-Day Security Deposit Return (Minn. Stat. § 504B.178)

• 21 days to return deposit with itemization
• Shorter than many states (30 days typical)
• Punitive damages up to $500 for willful violation

14-Day Month-to-Month Termination (Minn. Stat. § 504B.135(e))

• Only 14 days notice to terminate month-to-month
• One of shortest termination periods in nation
• Very landlord-friendly for month-to-month leases

Building Code Violation Disclosure (Minn. Stat. § 504B.195)

• Must disclose building code violations cited by authorities
• Specific statutory disclosure requirement
• Protects tenants from unsafe conditions

Fair Housing Requirements

Best Practices for Minnesota Landlords

• Use comprehensive written leases for all tenancies
• Conduct thorough move-in and move-out inspections with photos
• Document property condition extensively
• Return deposits within 21 days with itemization (required by law)
• Pay interest on deposits held over one year (required by law)
• Limit late fees to 8% of overdue rent (required by law)
• Limit NSF fees to $30 (required by law)
• Disclose building code violations (required by law)
• Provide landlord’s name and address (required by law)
• Keep detailed records of all transactions and communications
• Respond promptly to repair requests
• Maintain property to comply with housing codes
• Install and maintain working smoke and CO detectors
• Never use self-help eviction methods
• Follow proper court procedures for evictions
• Be aware of St. Paul and Minneapolis local rent control/stabilization ordinances

Minnesota Climate Considerations

• Four Seasons: Cold winters, warm summers
• Harsh Winters: Very cold temperatures, significant snow
• Temperature Range: -20°F to 95°F typical range
• Heating Critical: Adequate heating system essential October through April
• Snow Removal: Critical for safety and access
• High Heating Costs: Significant utility expenses in winter
• Ice Dams: Common issue; proper maintenance required

Minneapolis/St. Paul and Urban Area Considerations

• Local Ordinances: Additional requirements in cities
• Rental Registration: Required in many cities including Minneapolis and St. Paul
• Rental License: May be required in some jurisdictions
• Rent Control: St. Paul has rent control ordinance
• Rent Stabilization: Minneapolis has rent stabilization ordinance
• Lead Paint: Present in older housing; proper disclosure critical
• Rental Inspections: Many cities require inspections

Rural Property Considerations

• Well Water: Landlord typically maintains well system
• Septic Systems: Clarify maintenance responsibilities
• Propane/Heating Oil: Specify who pays and maintains; critical for heat
• Private Roads: Specify maintenance and snow removal responsibilities
• Distance to Services: Remote locations; specify emergency procedures
• Winterization: Critical for unoccupied properties

Resources

• Minn. Stat. – Chapter 504B (Landlord and Tenant)
• Minnesota Attorney General’s Office
• Mid-Minnesota Legal Aid
• District and County Courts (for eviction proceedings)
• Minnesota Multi Housing Association