What types of rental accommodations are covered by legislation governing residential tenancies in Minnesota?

Minnesota law covers rental of a house, apartment, room or other living space. Manufactured home owners who rent lots in manufactured home parks have special rights and responsibilities under state law.

There are two kinds of leases, the periodic tenancy lease (usually a month-to-month, automatic renewal rental agreement) and the definite term lease (which specifies a definite rental period, generally 6 months or 1 year).

Is it necessary to have a written lease or rental agreement?

A rental contract can be either oral or written. However, a written agreement is recommended. If a rental building contains 12 or more residential units or if the term of the tenancy is for longer than 1 year, a written lease is required.

What about a signed move-in move-out inspection report?

A written signed inspection report is not required, however, it is recommended to protect both parties’ interests and help to avoid disputes. At move-in the tenant should make a list of everything that is broken, stained, defective or damaged, sign the list and ask the landlord to sign it as well. If the landlord does not cooperate, the tenant should take pictures and get an impartial witness to view the premises as well. Both tenant and landlord should have a copy of the list. On move-out, both parties should inspect the premises and fill in another copy of the list, and negotiate (if possible) or make note of any disputed items.

Can the landlord charge a deposit or other fees?

Many landlords require prospective tenants to pay an application fee, which is used to cover the cost of checking the tenant’s references. A landlord can ask for a screening fee, but must return to the prospective tenant any amount that is not used to perform a reference check or to obtain a tenant screening report.

Landlords are also permitted to take pre-lease deposits. These deposits must be in writing and the document must completely explain the instances where money will be retained or returned. If the landlord and the prospective tenant enter into a rental agreement, the pre-lease deposit must be applied to the tenant’s security deposit or rent.

The landlord also has the right to require a security deposit. Minnesota law does not limit the amount of the security deposit. The landlord can increase the amount of the security deposit at any time during a periodic tenancy (such as a month-to-month tenancy), but only after giving the tenant proper advance written notice. Generally, this is one rental period plus a day. If the amount of the security deposit is stated in the rental agreement, and the rental agreement has a definite ending date (a definite term tenancy), no changes can be made to the amount of the deposit unless both parties agree to the changes or the lease allows for changes.

At the end of the tenancy, the landlord must return the deposit to the tenant with interest, within 21 days after the date that the tenancy ends. The landlord may keep any amounts necessary to repair damage done by the tenant (beyond normal wear and tear), or to pay off other debts related to the tenancy, including any unpaid rent. The landlord must provide a written explanation to the tenant outlining why any part of the deposit is being retained.

When is the landlord allowed to increase the rent?

Under a periodic tenancy, a landlord must give proper written notice before raising the rent. In a month to month tenancy, the notice period is one rental period plus one day. Rent cannot be raised during a definite term lease unless the lease allows for a rent increase.

Can the landlord levy additional charges for late rent?

The rent must be paid on the date it is due. If a tenant is late in paying rent, the landlord has the legal right to start eviction proceedings. If a tenant pays rent late, the landlord may require the tenant to pay a late fee. The lease must state how much the late fee will be and when it is due. The late fee must be a reasonable amount that compensates the landlord for actual damages resulting from late payment.

How can a lease be terminated?

A definite term lease (such as a 1-year lease) cannot be terminated before the expiry of the lease unless the lease itself contains provisions which allow a tenant to break the lease, except upon the death of a tenant.

A periodic tenancy can be terminated by either party giving written notice to the other one full rental period plus one day before the end of the tenancy.

Can a tenant sublet the premises?

Generally, the consent of the landlord is required to sublet.

When is the landlord permitted to enter the premises?

Generally, a landlord may only enter the premises for a "reasonable business purpose", after making an effort to give the tenant reasonable notice. Reasonable business purposes include (i) showing the unit to prospective tenants, or to prospective buyers or an insurance agent; (ii) performing maintenance or repairs; (iii) for purposes of an inspection of the property by state or local officials; (iv) checking on a tenant causing a disturbance; (v) checking on a tenant the landlord believes is violating the lease; (vi) checking to see if a person who has not signed the lease is staying in the premises; (vii) checking the unit when a tenant moves out; or (viii) performing housekeeping work in a senior housing unit. The landlord may enter the premises without notice in the event of an emergency, or to prevent injury to property or persons, or to determine a tenant’s safety, or if immediate entry is necessary to comply with state or local laws.

On what grounds can a landlord evict a tenant?

A landlord can evict a tenant for not paying the rent, breach of the rental agreement, damage to property, illegal activities in or unlawful use of the premises, endangering other persons or the property, or for abandoning the property.

A landlord cannot forcibly remove a tenant. In order to evict, a landlord must first bring an unlawful detainer action against the tenant and have the court order the tenant to vacate the premises. If the tenant can show that immediate eviction will cause substantial hardship, the court will allow a reasonable period of time up to 1 week in which to move. A hardship delay will not be granted if the tenant is causing a nuisance or seriously endangering the safety of other residents, their property or the landlord’s property.

A landlord cannot lock a tenant out or otherwise preclude a tenant from living in the premises without a court order. The landlord cannot shut off a tenant’s utilities to force the tenant to move out. Also, a landlord cannot confiscate a tenant’s belongings for nonpayment of rent or other charges.

A landlord cannot evict a tenant, raise the rent, cut services, end a tenancy or otherwise adversely change the rental terms in retaliation for a tenant’s good faith attempt to enforce his or her rights, including reporting the landlord to a governmental agency for violating health, safety, housing or building codes, or joining a tenant’s association.

According to Minnesota law, landlords cannot legally refuse to sell, rent or lease housing to potential tenants, or have different rental terms, on the basis of race, color, creed, religion, national origin, sex, marital status, sexual orientation, disability, or reliance on public assistance. The only exception is an owner living in a single family dwelling, who may refuse to rent part of the premises on the basis of sex, marital status, sexual orientation, disability or reliance on public assistance. A landlord cannot refuse to rent to families with children unless (i) the premises are an owner-occupied house, duplex, triplex or fourplex; or (ii) the building is designated solely as housing for elderly persons (62 years of age or older).

The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.