How Much Can Landlords Raise Rent in Minnesota?

How Much Can Landlords Raise Rent in Minnesota?

A common question asked of our attorneys over the past several months is “can my landlord raise my rent?” The answer to that question is “Yes.” The more difficult question is “how much can my landlord raise rent?” The answer to this question largely depends where the tenant resides.

In 2021, the City of Saint Paul passed an ordinance implementing rent control in Saint Paul City Code of Ordinances (SPCCO) §§ 193A.01 - 193A.09. This rent control ordinance, which is one of the most restrictive rent control provisions in the world, caps rent increases at 3% over each twelve month period. Interestingly, this provision also applies to vacant units, meaning that a landlord cannot charge a new tenant more than 3% higher than what the prior tenant was paying. In sum, the rent control cap governs the rental unit, not the tenant.

This is a very restrictive ordinance, and while landlords can request an exemption based on a complicated “reasonable return on investment” test, in almost all cases rent increases in Saint Paul are capped at 3%.

Presently, Saint Paul’s rent control ordinance is the only rent control ordinance in Minnesota. That means that elsewhere in Minnesota, landlords may raise rent as little or as much as they would like. Of course, Minnesota law prohibits rent increases that are either discriminatory or retaliatory in nature, but proving such an underlying motive can be difficult.

This said, the city of Minneapolis is on the verge of implementing its own rent control restrictions. In 2021, a Minneapolis ballot measure was passed, paving the way for Minneapolis voters to decide whether to add rent control in the city. Given Saint Paul’s recent addition of rent control, it seems likely that Minneapolis will be close behind. It is unclear if other Minnesota cities will follow suit, but it is important for both Minnesota landlords and tenants to pay attention to changes concerning rent increases.

If you are a Minnesota landlord or tenant with a rent increase concern, contact the Minnesota landlord-tenant attorneys at RAM Law PLLC for a free consultation.