The Minnesota residential lease agreement (“rental agreement”) is a binding agreement that allows a tenant to occupy a landlord’s property for a designated period of time in exchange for rent. When authorizing a lease agreement, the landlord should first check the tenant’s credit, background, and rental history.
Minnesota Lease Agreement Disclosures
The following disclosures are either required for some or all residential lease agreements in Minnesota.
Disclosure | Applicable to | |
---|---|---|
Landlord Name/Address | All Units | |
Late Fees | Units Charging Late Fees | |
Inspection and Condemnation | Units Pending Health/Safety Inspection | |
Financial Distress | Units with a Foreclosure Notice | |
Shared Utilities | Single Metered/Multiple Tenants | |
Covenant of Landlord/Tenant | All Units | |
Lead Paint | All Units Built Prior to 1978 |
Landlord’s Name & Address
Applicable to all rental units in Minnesota.
Any individual authorized to manage the rental property (including the landlord and owner) must disclose their name and address so future legal notices and demands that are sent by the tenant can be properly delivered. Generally, this information is provided in the rental agreement and shall be provided to the tenant in writing at or before the commencement of the tenancy.
Late Fee Disclosure
Applicable to any unit charging late fees.
Late fees in Minnesota must be outlined in the lease agreement to be enforceable, including the amount of the fee and the date it is assessed. This fee may not exceed 8% of the overdue balance, and can only be charged after the stated due date that is included in the rental agreement.
The following is an example of a late fee section:
LATE FEE. If rent is not paid by the due date outlined in this lease, a late fee of 8% will be assessed to the balance due after a 3-day grace period. If payment is received before the grace period expires, there is no late fee owed.
Inspection & Condemnation Disclosure
Applicable to any property with a citation issued for an inspection order related to health and safety.
If a rental unit in Minnesota has an outstanding health and safety inspection order with a citation issued for it, a landlord must disclose it in the rental agreement before the tenant signs or pays a security deposit.
If the pending order is not deemed a health risk, the landlord must instead include a notice that the inspection order is available for review upon request.
Inspection orders should be included as an attachment to the lease.
Download: Minnesota Inspection and Condemnation Disclosure Form (PDF)
Financial Distress Disclosure
Applicable to any property that has received a notice of foreclosure.
A Minnesota landlord must disclose if the property that is being offered for rent has a pending foreclosure, including the date of the foreclosure. The landlord may only enter into a periodic residential rental agreement with a rental term that is not more than two months (or the time left in the contract cancellation period). The landlord may enter a fixed term residential rental agreement not past the cancellation period, unless the foreclosure has been remedied, in which case the rental agreement may be extended.
FINANCIAL DISTRESS DISCLOSURE. This property has a pending deed cancellation or disclosure, set to execute on __/__/____. Note that until further notice, this lease agreement will terminate on the aforementioned date.
Download: Minnesota Financial Distress Disclosure Form (PDF)
Shared Utility Agreement
Applicable to single-metered buildings with multiple tenants.
Landlords in Minnesota who manage a multi-unit rental building with one or more rental units with a single utility meter shall be the bill payer. The landlord will be responsible for the entire building and disclose this information in the rental agreement.
Minnesota landlords must also provide the following information related to the utility charges:
- How the charges will be distributed.
- Total utility costs for the shared utility meter for the whole building or property.
- Breakdown of the shared utility bill charges for the whole property for up to two years prior (upon request).
- Any landlord of a multiunit building who bills for gas or electric and the utility charges are separate from rent must inform tenants of the “Low Income Home Energy Assistance Program” by September 30th of each year. Landlords must provide the toll-free phone number of the administering agency.
The following section is an example of a shared utility agreement:
UTILITIES: This rental unit shares the following utilities with another unit or common area:
[ ] Electricity
[ ] Water
[ ] GasThis lease uses the following method for calculating utility charges between Tenant(s):
[ ] Home Square Footage
[ ] Number of Tenants
[ ] Even Split Between Tenants
[ ] Other:___________________________________________________________Tenant agrees to pay the utility charges accrued, plus a $____ service charge, to Landlord:
[ ] Monthly
[ ] Yearly (estimated)
[ ] Yearly (end of year)
Download: Minnesota Shared Utility Arrangement Disclosure Form (PDF)
Covenant of Landlord and Tenant Not to Allow Unlawful Activities
Applicable to all rental units.
Minnesota landlords are required to provide a notice in the rental agreement that outlines legal obligations that fall on both the landlord and tenant. This notice includes an agreement for both parties to maintain only legal use of the property and to not allow unlawful activities.
The following exact notice must be included in the lease:
Landlord and tenant promise that neither will unlawfully allow within the premises, common areas, or curtilage of the premises (property boundaries): controlled substances, prostitution or prostitution-related activity; stolen property or property obtained by robbery; or an act of domestic violence, as defined by MN Statute Section 504B.206 (1)(e), against a tenant, licensee, or any authorized occupant. They further promise that the aforementioned areas will not be used by themselves or anyone acting under their control to manufacture, sell, give away, barter, deliver, exchange, distribute, purchase, or possess a controlled substance in violation of any criminal provision of Chapter 152.
Download: Covenant of Landlord and Tenant Not to Allow Unlawful Activities Disclosure Form (PDF)
Lead-Based Paint Disclosure
Applicable to any rental units built prior to 1978.
It is a federal law in the United States that any home built prior to 1978 must disclose the risks posed by lead-based paints. This law requires landlords in Minnesota to:
- Fill out and attach this lead-based paint disclosure form to the lease agreement.
- Provide the tenant with an Environmental Protection Agency (EPA)-approved pamphlet about the dangers of lead-based paint.
- Provide additional records or reports about the presence or hazards of any known lead-based paint in the unit. For multi-unit buildings with common areas, this includes information from building-wide evaluations.
Download: Minnesota Lead-Based Paint Disclosure Form (PDF)
Optional Disclosures & Addendums (Recommended)
The following lease agreement disclosures and addendums are not required by Minnesota law in residential lease agreements, but either help reduce future conflicts with tenants or reduce legal liability for landlords.
- Medical Marijuana Use – it is recommended to state where medical marijuana use is and isn’t allowed on the property so that expectations are clear. Minnesota law allows landlords to restrict marijuana usage to non-smoking methods only or control where users can smoke to not interfere with other tenants’ peaceful enjoyment of the premises.
- Move-in Checklist – it is recommended to provide an itemized list of damages to the property before move-in to make sure tenants are responsible for any serious damages that occur during the lease term. This can be attached to the lease agreement or signed as a separate document.
- Bed Bug Disclosure – for rental units with a history of infestation, it is recommended to provide information on the protocol for handling a bed bug infestation. This addendum will notify the tenant of their obligation to cooperate with bed bug prevention by promptly reporting any sign of infestation to the landlord.
- Asbestos Disclosure – for rental units built prior to 1981, asbestos was a common building material. This disclosure will notify the tenant to take certain precautions to minimize the chance of disturbing the asbestos fibers (i.e. no sanding, pounding, modifications or repairs, without the landlord’s consent). The disclosure will also notify the tenant of their obligation to immediately notify the landlord if any ceilings begin to deteriorate.
- Mold Disclosure – it is recommended to disclose the current mold status of a property in the lease to protect against future liability of mold damages due to the tenant’s negligence during the lease term.
Sources
- 1 MN Stat § 504B.181 (2019)
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Disclosure to tenant: There shall be disclosed to the residential tenant either in the rental agreement or otherwise in writing prior to commencement of the tenancy the name and address of:
(1) the person authorized to manage the premises; and
(2) the landlord of the premises or an agent authorized by the landlord to accept service of process and receive and give receipt for notices and demands.
- 2 MN Stat § 504B.177 (2019)
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(a) A landlord of a residential building may not charge a late fee if the rent is paid after the due date, unless the tenant and landlord have agreed in writing that a late fee may be imposed. The agreement must specify when the late fee will be imposed. In no case may the late fee exceed eight percent of the overdue rent payment. Any late fee charged or collected is not considered to be either interest or liquidated damages. For purposes of this paragraph, the “due date” does not include a date, earlier than the date contained in the written or oral lease by which, if the rent is paid, the tenant earns a discount.
- 3 MN Stat § 504B.195(a) (2019)
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Disclosure to tenant: (a) Except as provided in subdivision 3, a landlord, agent, or person acting under the landlord’s direction or control shall provide a copy of all outstanding inspection orders for which a citation has been issued, pertaining to a rental unit or common area, specifying code violations issued under section 504B.185, that the housing inspector identifies as requiring notice because the violations threaten the health or safety of the tenant, and all outstanding condemnation orders and declarations that the premises are unfit for human habitation to:
…
(2) a person before signing a lease or paying rent or a security deposit to begin a new tenancy; and
… - 4 MN Stat § 504B.195(b) (2019)
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(b) If an inspection order, for which a citation has been issued, does not involve code violations that threaten the health or safety of the tenants, the landlord, agent, or person acting under the landlord’s control shall post a summary of the inspection order in a conspicuous place in each building affected by the inspection order, along with a notice that the inspection order will be made available by the landlord for review, upon a request of a tenant or prospective tenant. The landlord shall provide a copy of the inspection order for review by a tenant or a prospective tenant as required under this subdivision.
- 5 MN Stat § 504B.151 (2019)
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(b) Before entering into a lease under this section and accepting any rent or security deposit from a tenant, the landlord must notify the prospective tenant in writing that the landlord has received notice of a contract for deed cancellation or notice of a mortgage foreclosure sale as appropriate, and the date on which the contract cancellation period or the mortgagor’s redemption period ends.
- 6 MN Stat § 504B.215(2) (2019)
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Single-meter utility service payments: Except as provided in subdivision 3, the landlord of a single-metered residential building shall be the bill payer responsible, and shall be the customer of record contracting with the utility for utility services. The landlord must advise the utility provider that the utility services apply to a single-metered residential building. A failure by the landlord to comply with this subdivision is a violation of sections 504B.161, subdivision 1, clause (1), and 504B.221. This subdivision may not be waived by contract or otherwise. This subdivision does not require a landlord to contract and pay for utility service provided to each residential unit through a separate meter which accurately measures that unit’s use only. This subdivision does not prohibit a landlord from apportioning utility service payments among residential units and either including utility costs in a unit’s rent or billing for utility charges separate from rent.
- 7 MN Stat § 504B.215(2a) (2019)
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(a) A landlord of a single-metered residential building who bills for utility charges separate from the rent:
(1) must provide prospective tenants notice of the total utility cost for the building for each month of the most recent calendar year;
(2) must predetermine and put in writing for all leases an equitable method of apportionment and the frequency of billing by the landlord;
(3) must include in the lease a provision that, upon a tenant’s request, the landlord must provide a copy of the actual utility bill for the building along with each apportioned utility bill. Upon a tenant’s request, a landlord must also provide past copies of actual utility bills for any period of the tenancy for which the tenant received an apportioned utility bill. Past copies of utility bills must be provided for the preceding two years or from the time the current landlord acquired the building, whichever is most recent; and…