Minnesota Rent Increase Laws: When Can A Landlord Increase Rent?

When Can a Minnesota Landlord Increase Rent?

Minnesota landlords have the right to set and raise rent on tenants, although this right can be curtailed through contract or agreement. Landlords choose to raise rent for many reasons, the foremost being to keep pace with a changing rental market or to cover increased costs. Additionally, some landlords may wish to increase rent to cover property renovations or costs incurred due to significant repairs.

However, in order to raise rent in Minnesota, landlords must first be aware of whether their lease agreement permits rent increases. Minnesota state and local laws can play a large role in this determination, and a landlord must look at city ordinances as well as state regulations before increasing rent on a tenant.

Generally speaking, landlords are freely able to raise rent as long as they do so as permitted by their lease agreement with the tenant. Usually this is done after an initial term lease has expired and the tenant wishes to renew or extend their lease. Additionally, if the lease is “month-to-month,” a landlord can usually raise rent by providing a written notice to the tenant that informs them of the rent increase. This sort of rent increase notice must usually be provided at least a full rental period before the increase is to take effect, and may need to be provided earlier if required by the lease.

Does Minnesota Have Rent Control?

The state of Minnesota does not have any state rent control limits, and also limits the ability of each city to control rent. However, Minnesota law does allow cities to pass ordinances through general elections that provide rent control. One recent example of this is the city of St. Paul. In 2021, the city of St. Paul instituted extensive rent control measures as voted upon by the general population of the city. While rent control measures such as those mandated by St. Paul are still rare, it is important for landlords to be aware of ordinances or legislation that may change or affect their right to set and raise rent.

When is a Rent Increase Unlawful?

Most Minnesota landlord rent increases are permissible as long as they follow the terms and conditions of the parties’ lease. However, a landlord may not raise rent out of retaliation for a protected tenant activity (such as reporting a landlord violation) and a landlord may also not use a rent increase for a discriminatory purpose. In short, a landlord may not raise rent based on a tenant’s race, gender, religion, or disability, or any other protected class.

Can a Minnesota Landlord Increase Late Fees?

Yes. However, Minnesota Statutes Section 504B.177 caps late fee charges at 8% of the past due rent payment. That means that landlords may increase their late fees in an amount commensurate with a rent increase, as long as that amount is not over 8% of the past due rent. Any changes in the late fee structure (or any other lease term) must also be modified as allowed in the lease. Typically this cannot change until the lease is to be renewed or is proceeding on a month-to-month basis.

While Minnesota residential rent increase law is not particularly complicated when compared to other areas of Minnesota landlord-tenant law, it still can create headaches for landlords. Correctly complying with notice periods or drafting a strong lease agreement can be troublesome and may result in unforeseen complications if not properly handled. It is important for landlords dealing with rent increase issues to contact an experienced Minnesota landlord attorney for advice or guidance. Call the landlord-tenant attorneys at RAM Law PLLC at 651-468-2103 or submit our free online consultation form.