If you are a landlord in Minnesota, the success of your rental business depends in part on your awareness of how the industry is regulated on both the federal and state level. If you want to keep your business out of any legal trouble in the future, studying up on Minnesota landlord tenant laws is a great way to start.
Let’s take a look at some of the primary property management laws that every landlord should know in the state of Minnesota.
Tenant Screening
Like all fifty states, Minnesota falls under the jurisdiction of the federal Fair Housing Act. The passing of this act in 1968 prohibited any form of housing discrimination by landlords or real estate agents based on race, color, religion, gender, national origin, familial status, or disability. This is especially important to remember during the tenant screening process as you are considering applicants.
Minnesota state law furthers these protections, prohibiting any form of discrimination on the basis of marital status, source of income, or sexual orientation.
However, landlords are permitted to run criminal background checks on tenants and factor the results into their final decisions. The U.S. Department of Housing and Urban Development (HUD) advises landlords not to turn prospective tenants away merely because of the existence of a criminal record. Instead, you should consider whether an applicant’s criminal record indicates that they are likely to violate the lease or introduce a real threat to others’ safety and quiet enjoyment.
You should also be aware that in Minnesota rental application fees are not restricted by law. You may charge them if you wish, but the full amount must be refunded if the applicant is rejected for an undisclosed reason, if a prior applicant accepts, or if you do not obtain any customer credit or tenant screening report.
Rent and Fees
Rent control is banned statewide in Minnesota, meaning that there cannot be an enforced limit on rent prices.
Late fees, however, are regulated in relation to amount that landlords charge for rent. You can only charge up to 8% of the rent amount for a given late fee. For instance, if you charge the statewide median monthly rent cost of $1,537, a late fee could not surpass $122.96.
In certain states, you cannot begin charging late fees until you have given your tenants a grace period to pay rent. There is no such requirement in Minnesota, however, and grace periods are completely optional. You can begin charging late fees immediately after the rent collection date has passed.
Lastly, if a tenant pays their rent with a check that ends up bouncing, Minnesota law states that you can charge them a rental NSF (non-sufficient funds) fee of up to $30.
Evictions
If a tenant fails to pay rent when due, eviction laws in Minnesota state that you cannot file until you have issued a rent demand notice (for month-to-month tenancies, this notice must give tenants at least fourteen days to pay). If the tenant submits a payment during the notice period you specify in the lease, you cannot file for eviction on those grounds.
Giving your tenants a grace period is optional, but if you have one in place, any eviction notice period outlined in the lease cannot begin until after the grace period has ended. For example, if you give your tenants a three-day grace period and a five-day period to pay or quit before eviction, a tenant should have a minimum of eight days after the rent collection date to submit a payment before you file for eviction.
Beyond this provision, there is no other requirement in Minnesota state law to give your tenants a chance to “cure” a lease violation within a certain number of days. In the case of other lease violations or illegal activity on the property, you are allowed to file for eviction immediately. However, if you end up filing for eviction, you should always give the tenant in question advanced notice so that they can prepare for the eviction hearing.
Conclusion
Hopefully this article has given you a foundation from which you can make informed and compliant decisions for your rental business. Staying on top of property management laws can be difficult work, but it is undoubtedly a necessary and important step of protecting the investments you have made in your business.