A Minnesota lease agreement is the backbone of your rental business. Whether you’re leasing a Minneapolis apartment or a duplex in Duluth, the right lease agreement will lay out expectations, protect your investment, and keep you compliant with state laws.
Disclosures (7)
A Minnesota lease agreement is only one piece of the rental puzzle. Landlords are required to provide specific disclosures to tenants, as well. These disclosures provide transparency and help protect both the landlord and the tenant.
- Lead-based paint: Federal law requires landlords to inform tenants of any lead-based paint in the unit, as well as the hazards that lead-based paint can present.
- Landlord identification: A Minnesota lease agreement must contain the name and contact information of the landlord or the person responsible for managing the property (MN Stat. § 504B.181).
- Unlawful activities: Landlords are required to include state-approved language that explains the obligations landlords and tenants have to help prevent unlawful activity on the property (MN Stat. § 504B.171).
- Financial distress: If a landlord receives notice of foreclosure or deed cancellation on the unit, they must disclose this to the tenant in writing (MN Stat. § 504B.151).
- Shared utilities: Landlords must outline how charges will be divided among tenants if any units share a utility meter (MN Stat. § 504B.215(2)).
- Outstanding inspections: Minnesota landlords must disclose if the unit is late on inspections or has been subject to citations or violations (MN Stat § 504B.195).
- Landlord-tenant rights handbook: Landlords must inform tenants where they can find the Landlord and Tenants’ Rights and Responsibilities handbook (Minn. Stat. § 504B.181 2(b)).
Optional Disclosures and Addenda
Adding optional disclosures isn’t required by law, but it’s a smart move to help provide clarity and minimize liability. Here are some recommended additional disclosures.
Asbestos: Informs tenants of any asbestos-related hazards in the unit and also tips to minimize risk.
Bed bugs: Informs tenants of any history of bed bug infestations in the unit or adjacent units.
Medical marijuana use: Outlines the accepted use of medical marijuana on the property, including any limitations or restrictions.
Mold disclosure: Informs tenants of any mold issues in the unit, as well as treatment options.
Non-refundable fees: Outlines any non-refundable fees included in the Minnesota lease agreement. Non-refundable fees that the tenant disagrees with may not be enforceable.
Smoking: Designates smoking areas on the property that do not disturb other residents.
Consequences of Not Including Mandatory Disclosures
State laws require mandatory disclosures in every Minnesota lease agreement. Landlords who fail to include these disclosures can face serious consequences, from financial penalties to legal troubles. Providing clarity up front can help prevent issues later.
Security Deposit Regulations in Minnesota
Minnesota has specific rules regarding security deposits, including interest payments and the timeframe for returning the funds.
Maximum amount: Minnesota does not limit the amount that landlords can charge as a security deposit.
Deposit receipt: Minnesota landlords are not required to provide tenants with a receipt for their security deposit.
Interest payments: Landlords are required to pay tenants interest at a simple 1 percent interest rate (MN Stat. § 504B.178(2)).
Security deposit return: Landlords are required to return the tenant’s security deposit within 21 days of lease termination or 5 days of the tenant moving out, whichever comes first (MN Stat. § 504B.178(3)).
Deductions: Landlords are allowed to withhold funds from the security deposit to cover damages caused by the tenant. They must provide an itemized statement outlining the deductions when they return the remainder of the deposit (MN Stat. § 504B.178(3)).
Rent Payment Regulations
Minnesota laws set the groundwork for rent payment regulations, from how landlords collect rent to grace periods for late payments.
Rent control/stabilization: Minnesota does not have any state-wide rent control laws. However, some local jurisdictions have enacted various rent control guidelines. Always follow local regulations when charging rent.
Late rent fees: Landlords can charge up to 8 percent of the late rent amount as a late fee, provided it’s clearly outlined in the Minnesota lease agreement (MN Stat. § 504B.177).
Grace period: There is no state-mandated grace period for late rent in Minnesota, although some landlords choose to add one into their lease agreement.
Tenant’s right to withhold rent: Tenants can withhold rent if their landlord fails to correct a building or health code violation within 14 days of receiving notice. At that point, tenants may handle the repairs themselves and deduct the cost from the rent (MN Stat. § 504B.395-425).
Violations
Even good tenants can slip up occasionally. Minnesota law outlines how tenants can respond to lease violations while still staying within the law.
Lease violation: State law does not dictate how long a landlord must give a tenant to cure a lease violation, but the Minnesota lease agreement must clearly outline the terms.
Missed rent payment: Once a tenant misses a rent payment, their landlord can issue a 14-day Notice to Pay or Quit (MN Stat. § 504B.135).
Lease abandonment: A tenant who abandons their lease early and without just cause may be financially responsible for the remainder of the lease term. However, the landlords must attempt to minimize the loss of rent by re-renting the unit.
Self-help evictions: Self-help evictions are illegal in Minnesota. Landlords should never attempt to remove tenants on their own.
Terminating a Lease
Terminating a Minnesota lease agreement comes with notice requirements that vary based on lease type. Knowing these requirements helps you make a smooth transition.
Standard lease: Tenants may be allowed to break their lease early and without penalty if they meet a qualifying condition, such as active duty military service, domestic violence, tenant death, or landlord harassment.
Month-to-month: Either party can terminate a month-to-month rental agreement with written notice at least one complete rent cycle before the desired termination date (MN Stat. § 504B.135).
Property abandonment: Landlords must notify tenants and store their belongings for 28 days after the tenant abandons their property. Once this time is up, they may dispose of the property (MN Stat. § 504B.271).
Renewing a Lease
Renewals give you the chance to hold on to good tenants and update your lease terms as necessary. Clear communication and proper notice facilitate a smooth transition.
Notice requirements: Landlords must provide at least one complete rent cycle’s notice when not renewing a month-to-month rental agreement. There are no requirements for notice when not renewing a standard lease (MN Stat. § 504B.135).
Renewals: Minnesota landlords are not required to renew a Minnesota lease agreement automatically.
Landlord’s Access to Property
Minnesota law requires landlords to provide tenants with notice before entering a property, except in cases of emergencies. Follow these rules to respect your tenant’s privacy while also protecting your property.
Immediate access: Landlords may enter the property immediately in the case of an emergency (MN Stat. § 504B.211(4)).
Notice requirements: Minnesota landlords may enter the unit with reasonable notice, most often 24 hours. Landlords may provide less notice with the tenant’s permission, but the landlord must enter between 8:00 a.m. and 8:00 p.m. (MN Stat. § 504B.211(2)).
Harassment: Failure to follow these rules is often considered landlord harassment. Under these conditions, landlords may face civil penalties and be held responsible for returning all rent collected from the tenant (MN Stat. § 504B.211).
