The Minnesota rental application form is a document that is used to collect screening information about potential renters. Landlords use them to determine whether or not to enter a lease agreement with the tenant based on information like finances or eviction history.
- Application Fee – in Minnesota, the landlord may charge no more than the screening service’s fee for an application fee. Additionally, the landlord must provide information in writing regarding the screening service used and its fees, and must return any unspent fees to the tenant. The criteria for the screening process must also be disclosed.
- Discrimination Laws – Minnesota offers specific state protections against discrimination due to gender identity, sexual orientation, and more on top of federal law which makes it illegal in Minnesota to ask about race, religion, familial status, and more (with some exceptions).
- Consent for Credit Check – the Federal Credit Reporting Act (FCRA) requires a prospective tenant to give written consent to check their credit history during the screening process.
Minnesota Rental Application Laws
The following laws apply to the application and tenant screening process in the state of Minnesota.
Collecting an Application Fee in Minnesota
The maximum application fee that may be charged in Minnesota is the cost incurred from screening the potential renter. The landlord must provide the criteria, details, and results of the screening as well as the cost of the screening, returning any additional funds to the tenant.
Illegal Housing Discrimination in Minnesota
Federal and state laws are in effect in Minnesota to protect potential renters from unfair discrimination during the application process.
Fair Housing Act
The Federal Fair Housing Act makes it illegal to discriminate against the following protected classes:
- National Origin (Nationality)
- Familial Status (having or not having children)
- Disability (Physical or Mental)
As a result, asking about any of these items on a rental application form (and/or using them to base an application decision on) is not allowed.
Minnesota Fair Housing Laws
Additionally, Minnesota state laws add additional protections for the following classes:
- Marital Status
- Sexual Orientation
- Gender Identity
- Public and/or Rental Assistance
These classes may not be included in any decision relating to a potential tenant.
Exemptions to Fair Housing Laws
Exemptions from Fair Housing laws do exist. In Minnesota, the following exemptions are allowed:
- Familial Status – landlords may ask about and base an application decision on if children will occupy the rented premises in any of the below cases:
- Two-unit owner-occupied buildings.
- Housing for Older Persons Exemption – in the case of age-restricted communities such as senior housing, familial status is exempt from FHA laws. This federal exemption, known as the “Housing for Older Persons” exemption, can apply to 55+ and 62+ communities that meet legal requirements for senior living status.
- Mrs. Murphy Exemption – dwellings with four units or less where one unit is occupied by the owner are exempt from Fair Housing Laws, unless a real estate agent represents the landlord. Race cannot be a deciding factor as per the Civil Rights Act of 1866
- Religious Organizations – religion may be considered as a basis for giving preference to certain applicants for property that is owned, operated, supervised, or controlled by a religious organization that does not rent for commercial purposes. However, other protected classes may not be the basis for making a decision as a result of this exemption. 42 U.S. Code § 3607
- Private Clubs – private clubs that operate without commercial intent may provide preferential treatment of applications for lodgings owned or operated by the club. 42 U.S. Code § 3607
Federally, race is a non-exemption criteria that cannot have an influence on the choice of whether to rent to an applicant or not regardless of existing exemptions.
Consent for Credit Checks
Before a landlord can run a credit check based on the prospective tenant’s information on the submitted rental application, the Federal Credit Reporting Act requires that written consent must be given by the applicant. This written consent can be given via a statement of such and signature on the rental application form itself, or via a separate consent form (example template).
Minnesota Security Deposit Law
If an applicant is approved, the following laws apply to the collection of security deposits in Minnesota:
- Standard Limit / Maximum Amount: There is no set limit to what Minnesota landlords may charge for a security deposit.
- Receipt Requirements: A receipt for the security deposit is only required when accepting the deposit in cash.
- Financial Holdings: The security deposit should be held in an interest-bearing account, bearing simple interest at the rate of 1% yearly.
Sending Rental Application Forms
Landlords can send rental application forms to tenants in one of two ways:
- Manually – using the PDF and Word templates available for free on our website (see the top right of this webpage), landlords can send a rental application form to tenants via a physical copy or email.
- With Software – most popular property management software services include an online rental application form that can automate the collection and screening process for landlords.
For reviews of popular property management software, click here.
Processing a Rental Application
The next step in the tenant screening process is to use the information on the rental application form to conduct a background check:
- Credit Check – subject to the tenant’s written consent, a credit check will either provide a simpler “pass/fail” report, or a full credit report including the tenant’s credit score and information about their income, employment, past addresses, credit inquiries and more.
- Eviction Check – an eviction check aims to show the tenant’s history of eviction filings or judgments against them at any point in the last 7 years.
- Criminal History Check – a criminal history check aims to show any records involving the tenant in state court criminal records or in databases such as the national sex offender public registry.
Minnesota Eviction Record Search
In addition to third-party services which collect eviction records for landlords, this information is also available to the public online by performing a case search of the Minnesota court system.
To access the eviction records:
- Access Minnesota Public Access (MPA) Remote.
- Select Civil, Family & Probate Case Records. You may also select a county/court location from the dropdown menu on this page.
- Enter the captcha code at the top of the screen, and select Search By Party from the dropdown menu below it.
- Enter the potential tenant’s name to view any existing records.
- Select the case number to be taken to the register of actions, which contains any available information.
Responding to Rental Applications
If an applicant meets all of your tenant screening criteria, then there’s nothing you need to do beyond notifying them and moving forward with the normal leasing process.
However, if you acquire a consumer report for an applicant (i.e. credit, eviction or criminal history) and you make an “adverse action” against them (EVEN IF the report’s information wasn’t the primary reason for doing so), you are required to provide the tenant with a notice letter that includes certain details, known as an “adverse action notice”.
An adverse action is defined as either rejecting the applicant or instituting additional/higher requirements than you have for another applicant (i.e. requiring a co-signer, larger security deposit, higher rent or an additional deposit).
In these cases, an adverse action notice is required to be sent to the applicant, and must include the following:
- The agency’s name, address and phone number that supplied the report.
- A statement explaining that the CRA didn’t make the decision for the adverse action themselves, and as a result, that they can’t explain why the decision was made.
- A statement explaining the applicant’s right to dispute such information and their right to a copy of the report in question within 60 days.
To learn more about requirements surrounding adverse action notices, see this article from the Federal Trade Commission. To get an idea of what an adverse action notice might look like, see this example letter.
Additionally, to protect against accusations of illegal discrimination, it is always recommended to include the exact reason why the application was not approved in the rejection letter.