A Minnesota residential lease agreement (“rental agreement”) is a legal contract between a landlord overseeing a rental property and a tenant using the property. State and local laws set the rules for rental agreements, such as laws regulating the use of a tenant’s security deposit.
Minnesota Residential Lease Agreement Disclosures
These disclosures are required for some or all residential lease agreements in Minnesota:
| Disclosure | Applicable To |
|---|---|
| Total Monthly Payment Disclosure | All Units |
| Landlord Name and Address | All Units |
| Late Fees | All Leases Charging Late Fees |
| Inspection and Condemnation | Any Units Pending Health/Safety Inspection |
| Financial Distress | Any Units Under Foreclosure |
| Shared Utilities | Any Multiple-Tenant Units with Single Utility Meters |
| Covenant Not To Allow Illegal Activity | All Units |
| Initial Inspection Option | All Units |
| Lead Paint | All Units Built Before 1978 |
Total Monthly Payment Disclosure
Applies to all Minnesota rentals.
Minnesota leases must list the sum total of rent plus all non-optional fees, described as the “Total Monthly Payment” for the lease. This disclosure must be on the first page of the lease.
Landlord’s Name and Address
Applies to all Minnesota rentals.
Minnesota leases must contain the name and address of the landlord (or authorized agent). This allows required communication (for example, about repairs) to happen in a smooth way. For this reason, most leases also include phone numbers and email addresses.
Contact information most often is written in the lease agreement, for maximum convenience. The landlord must notify the tenant whenever there’s a change in contact information.
Late Fee Disclosure
Applies to any Minnesota rental charging late fees.
Minnesota will only enforce late fees which are disclosed and agreed in the lease. Agreement must include the amount of the fee and the timeline upon which fees are charged. The state caps late fees at a maximum 8% of the overdue balance. (Returned check fees are capped at $30. )
This is an example of a late fee disclosure:
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 and Condemnation Disclosure
Applies to any Minnesota property under citation for health and safety inspection.
Minnesota landlords must provide the tenant with a disclosure whenever the rental property has a citation for an outstanding health and safety issue. This disclosure must occur before the tenant signs the lease or pays a security deposit. Proper disclosure requires attaching the citation to the lease.
For citations which aren’t health and safety risks, the landlord only has to provide notice that there is an existing citation which may be reviewed by the prospective tenant upon request.
Download: Minnesota Inspection and Condemnation Disclosure Form (PDF)
Financial Distress Disclosure
Applies to any Minnesota rental under a notice of pending foreclosure.
Minnesota landlords must disclose any pending foreclosure on rental property. Rental agreements may not extend past two months (for periodic leases) or the date of execution for foreclosure (for fixed-term leases), unless and until the property is no longer under the foreclosure.
This is an example of a financial distress disclosure clause:
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
Applies to Minnesota rentals in single-metered buildings with multiple tenants.
Minnesota allows landlords to charge separately for gas, water, or sewer service, when multiple rental units share a utility meter. State law prohibits separate utility billing for electric service. Leases with shared utilities must have the following disclosure attached beginning January 1, 2025:
UTILITY BILLS
How Will My Bill be Calculated?
1. Your utility bill is for your portion of the building’s natural gas or water and sewer usage, plus your portion of nonusage fees we get charged by the utility (for example, taxes and surcharges).
For natural gas, your portion is based on the square footage of your unit as a percentage of the square footage of all the units.
For water and sewer, your portion is based on the number of people in your unit (as listed on your lease) as a percentage of all the occupants of all units.
2. You are not charged for utilities used in the common areas or used in our spaces. In the case of water, your bill does not include usage for shared amenities such as laundry rooms or pools.
3. Your bill may include a late payment charge, which is capped at $5, and an administrative billing charge, which is capped at $8.
What If I Fall Behind on Utility Payments or Have a Question About My Bill?
1. If you fall behind on your payments, you have the right to a reasonable payment plan that you and we mutually agree on to pay off the amount you owe. The plan must take into account any financial and extenuating circumstances of your household that you tell us about.
2. You may request, and we will timely provide, the utility bill we received from the utility company and your percentage of the amount of the bill apportioned to tenants.
3. We must first try to resolve any disputes about your natural gas or electricity utility charges, including those about payment agreements. If we cannot agree on a payment plan or resolve any other dispute, you have the right to seek assistance from the Public Utilities Commission’s Consumer Affairs Office at 651-296-0406 or consumer.puc@state.mn.us.
Download: Minnesota Shared Utility Arrangement Disclosure Form (PDF)
Covenant of Landlord and Tenant Not To Allow Unlawful Activities
Applies to all Minnesota rentals.
Minnesota landlords and tenants must agree not to allow unlawful activities on the rental property. This requires a clause in all rental agreements outlining this legal duty.
This is the notice required by law:
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)
Initial Inspection Option Disclosure
Applies to all Minnesota rentals.
Minnesota landlords must notify the tenant about the option for an initial inspection of the property’s condition. The landlord has 14 days after move-in to provide this option. Inspection usually involves filling out a move-in checklist and helps ensure accurate deductions from the deposit upon move-out.
This disclosure is not always made together with the signing of the lease, although it is common to do so. There’s more leeway than usual because of the 14 day grace period given by law, and the landlord’s option to use photos and videos to agree with the tenant on the property’s condition without an inspection.
Lead-Based Paint Disclosure
Applies to any Minnesota rentals built before 1978.
Minnesota residential leases for property built before 1978 must, by federal law, contain a lead-based paint disclosure. This requires landlords to do the following:
- 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 any additional records or reports about the presence or hazards of 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 and Addenda (Recommended)
The following lease agreement disclosures and addenda are not required by Minnesota law in residential lease agreements, but help with tenant management and landlord liability.
| Optional Disclosure | Purpose |
|---|---|
| Asbestos | Informs tenants about any asbestos hazards related to the property. Tenants can reduce asbestos risk by not disturbing asbestos fibers. |
| Bed Bugs | Informs tenants whether the property or an adjacent unit has a history of suspected bed bug infestation, and reminds the tenant of the obligation to report suspected infestation immediately. |
| Medical Marijuana Use | Informs tenants about policy related to medical marijuana use on the rental property. Some state laws allow landlords to restrict marijuana usage to non-smoking methods only, or allow use only in designated smoking areas. |
| Mold Disclosure | Informs tenants about actual or suspected mold contamination on the property efforts, plus information about treatments. This helps limit landlord liability. |
| Non-Refundable Fees | Charges not agreed by the tenant in the lease may be refundable when the lease ends. For Minnesota landlords to charge a non-refundable fee, it must be disclosed and agreed as such in the lease. |
| Smoking | Informs tenants of designated smoking areas that do not interfere with the quiet enjoyment of other tenants. |
Consequences of Not Including Mandatory Disclosures
Mandatory disclosures outline important health, safety, and property information for the benefit of both landlord and tenant. A landlord who fails to provide federally or state-mandated disclosures could face legal consequences or monetary penalties, either from a tenant lawsuit or from state officials. Many lease provisions may be unenforceable without legally required disclosures.
Failure to comply with the federal lead-based paint hazard disclosure risks fines of tens of thousands of dollars per violation.
Sources
- 1 Minn. Stat. § 504B.120(1)
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A landlord must disclose all nonoptional fees in the lease agreement. The sum total of rent and all nonoptional fees must be described as the Total Monthly Payment and be listed on the first page of the lease. A unit advertised for a residential tenancy must disclose the nonoptional fees included with the total amount for rent in any advertisement or posting. In a lease agreement disclosure or unit advertisement, the landlord must disclose whether utilities are included or not included in the rent.
Source Link - 2 Minn. Stat. § 504B.181(1)
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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.
Source Link - 3 Minn. Stat. § 504B.177(a)
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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.
Source Link - 4 Minn. Stat. § 604.113(2)(a)
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A service charge, not to exceed $30, may be imposed immediately on any dishonored check by the payee or holder of the check, regardless of mailing a notice of dishonor, if notice of the service charge was conspicuously displayed on the premises when the check was issued.
Source Link - 5 Minn. Stat. § 504B.195(a)(2)
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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…
Source Link - 6 Minn. Stat. § 504B.195(b)
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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.
Source Link - 7 Minn. Stat. § 504B.151(1)(b)
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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.
Source Link - 8 Minn. Stat. § 504B.216(5)(a)
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Apportionment of electricity is prohibited.
Source Link - 9 Minn. Stat. § 504B.216(10)
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If natural gas or water and sewer is apportioned, leases entered into or renewed on or after January 1, 2025, must include an attachment with the following notice:
“UTILITY BILLS
How Will My Bill be Calculated?
1. Your utility bill is for your portion of the building’s natural gas or water and sewer usage, plus your portion of nonusage fees we get charged by the utility (for example, taxes and surcharges).
For natural gas, your portion is based on the square footage of your unit as a percentage of the square footage of all the units.
For water and sewer, your portion is based on the number of people in your unit (as listed on your lease) as a percentage of all the occupants of all units.
2. You are not charged for utilities used in the common areas or used in our spaces. In the case of water, your bill does not include usage for shared amenities such as laundry rooms or pools.
3. Your bill may include a late payment charge, which is capped at $5, and an administrative billing charge, which is capped at $8.
What If I Fall Behind on Utility Payments or Have a Question About My Bill?
1. If you fall behind on your payments, you have the right to a reasonable payment plan that you and we mutually agree on to pay off the amount you owe. The plan must take into account any financial and extenuating circumstances of your household that you tell us about.
2. You may request, and we will timely provide, the utility bill we received from the utility company and your percentage of the amount of the bill apportioned to tenants.
3. We must first try to resolve any disputes about your natural gas or electricity utility charges, including those about payment agreements. If we cannot agree on a payment plan or resolve any other dispute, you have the right to seek assistance from the Public Utilities Commission’s Consumer Affairs Office at 651-296-0406 or consumer.puc@state.mn.us.”
Source Link
