Minnesota Tenants Rights
TENANT RIGHTS AND RESPONSIBILITIES IN MINNESOTA
If you rent an apartment, home, condo, or other residential unit, you have numerous rights and responsibilities you may not be aware of that govern your living space, your use of it, and your landlord’s responsibilities. In Minnesota, tenant rights and responsibilities are governed by a series of state and federal law, local ordinances, housing codes, contract law, and a number of previous court decisions. This article examines some of the most common landlord-tenant issues that may arise before, during and at the end of your tenancy.
ENTERING INTO A RENTAL AGREEMENT
In Minnesota, when the owner of a house or apartment agrees (either orally or in writing) to give someone else the temporary use of the residence, for money or labor, the two have entered into a legally enforceable rental agreement. This section describes what is required of both landlords and tenants in a typical rental agreement.
Screening Fees
Many landlords require prospective tenants to pay a screening fee, which is used to cover the cost of checking the tenant’s references. Landlords may not charge an applicant a screening fee if the landlord has reason to know that no rental unit is available, or will be available soon. Additionally, landlords may not collect a screening fee without giving the applicant a written receipt, and may not cash or deposit the screening fee until all prior applicants have been screened and rejected, or offered the unit and declined to rent it. Importantly, landlords must return the screening fee to the applicant if the applicant is rejected for a reason not listed in the required disclosure criteria, or a prior applicant is offered the unit and agrees to rent it.
If a landlord accepts an applicant screening fee from a prospective tenant, the landlord must disclose in writing (prior to accepting the screening fee) the contact information of the tenant screening service the landlord will use, unless the landlord does not use one, and the criteria on which the decision to rent to the prospective tenant will be based. The landlord must then notify an unsuccessful applicant of the criteria the applicant failed to meet within 14 days.
Security Deposits
Landlords may require tenants to pay a security deposit, which is held by the landlord to pay for any damage, beyond ordinary wear and tear, that the tenant might do to the rental unit. The landlord may also use the security deposit to pay for any unpaid rent or any money the tenant owes to the landlord. Conversely, the security deposit may not be used by the tenant to pay his or her rent.
Under Minnesota law, landlords are not limited in the amount they may require as a security deposit, and may increase the amount of the security deposit at any time during a “periodic tenancy” (e.g. month-to-month) if the tenant is given advance written notice. If the security deposit amount is stated in a rental agreement which has a definite ending date, no changes in the deposit may be made unless both parties agree to changes or the lease allows for changes.
At the end of the tenancy, the landlord must return to the tenant the deposit with interest, but may keep the amount necessary to repair any damage done to the unit by the tenant (beyond ordinary wear and tear) or to pay off other debts related to the tenancy, including any unpaid rent.
The Lease
The terms of the rental agreement are stated in the lease. While it is always a good idea for leases to be in writing and signed by the parties, oral agreements may be enforceable in certain circumstances. If a building contains twelve or more residential units, the lease must be in writing. Any tenant with a written lease must be given a copy of the lease. Importantly, if a landlord sues a tenant for violation of a written lease, it is a defense for the tenant to prove that he or she was never given a copy of the lease. The landlord, however, may rebut this defense by showing that the tenant had actual knowledge of the terms of the lease.
There are two types of leases in Minnesota—periodic leases and definite term leases. Periodic leases are generally month-to-month tenancies. If the lease does not mention the length of the tenancy, the lease is periodic, and the rental period runs from one rent payment to the next. Periodic tenancies last until they are terminated by either the landlord or tenant by giving the other party proper notice. While most leases will state the length and form of such notice, if the lease does not specify the notice requirement for termination, written notice must be given one full rental period before the tenancy ends.
By contrast, definite term leases are leases stating how long the tenancy will last. Definite term leases are usually in writing, and must be in writing if they last for more than one year. While they generally state the type of notice required to terminate the tenancy, definite term leases often contain automatic renewal clauses, and renew for subsequent periods if proper notice is not given to terminate. In the absence of a notice requirement or automatic renewal clause, the tenancy ends on the date the lease says it does (unless the parties agree otherwise).
DURING THE TENANCY
The Rent
Tenants must pay rent on or before the date specified in the lease. Landlords who receive rent or other payments made by the tenant in cash must issue a written receipt immediately upon receipt of the cash if the payment is made in person, or within three business days if the payment is not made in person. The failure of a tenant to pay rent will allow the landlord to begin a legal proceeding to evict the tenant.
100 percent of the rent is due from the residential unit, meaning that, when an apartment is rented to roommates, all roommates are responsible for the entirety of the rent. If one roommate vacates the apartment during the lease term, the rent stated in the lease will still be due. Similarly, if a unit is vacated before the lease term ends, all tenants listed on the lease will still be responsible to pay the rent for the full lease term.
During a periodic tenancy, landlords may not raise the rent unless they give the tenants proper written notice (one rental period). During a definite term lease, rent cannot be raised during the lease term, unless the lease allows for a rent increase.
Tenant’s Right to Privacy
Landlords may generally only enter a tenant’s unit for a “reasonable business purpose” after making a good faith effort to provide the tenant with reasonable notice. Importantly, if the landlord violates this law, the tenant may initiate legal proceedings against the landlord to terminate the lease, recover the entire security deposit, and receive a penalty of up to $100 per violation. Under Minnesota law, reasonable business purposes which allow a landlord to enter a tenant’s unit after providing proper notice include (1) showing the unit to prospective tenants; (2) performing maintenance work; (3) showing the unit to state, county, or local officials or inspectors; (4) responding to a disturbance within the unit; (5) checking on a tenant the landlord believes is violating the lease; (6) determining whether an unauthorized person is living in the unit; and (7) checking the unit when the tenant moves out.
While a tenant’s right to notice may not be waived in the lease, a landlord may enter a unit without giving notice if (1) immediate entry is necessary to prevent injury to persons or property due to conditions relating to maintenance, building security or law enforcement; (2) immediate entry is necessary to determine the tenant’s safety; or (3) immediate entry is necessary to comply with state law or local ordinances. If a landlord enters a unit without giving prior notice to the tenant, and the tenant is not home, the landlord must give written notice to the tenant that he or she entered the residence. Failure of the landlord to abide by this law will permit the tenant to recover $100 per violation in court.
Repair Issues
Landlords are required under Minnesota law to keep units in reasonable repair. While this requirement may not be waived, both parties may agree that the tenant will do certain specific repairs or maintenance if the agreement is in writing (and easy to notice) and the tenant receives something adequate in return (such as a rent reduction).
Tenants who are having trouble getting their landlord to make necessary repairs in their unit have many options available. First, tenants may contact a state, county or local inspection agency. If the inspector finds code violations in the unit, the inspector will give the landlord a certain amount of time to correct the problem. It is extremely important to note that a landlord may not retaliate against a tenant who contacts an inspector by filing an eviction notice, increasing rent, or decreasing services. Second, tenants may place their rent in escrow with the court, and ask the court to order the landlord to make repairs. Third, the tenant may sue the landlord in district court under the Tenant’s Remedies Act. Fourth, the tenant may sue the landlord in conciliation court or district court and ask for a rent abatement. In certain situations, despite a landlord’s failure to make repairs, a landlord may attempt to evict the tenant for withholding rent. In these scenarios, the tenant may use the landlord’s failure to make necessary repairs as a defense.
ENDING THE TENANCY
Proper Notice
In periodic tenancies, if the lease does not specify how much advance notice must be given to terminate or end the tenancy, written notice must be received by the other party at least one full rental period before the last day of the tenancy. If a tenant or landlord misses the proper notice deadline (even by a day), the notice is invalid and the tenancy continues as if no notice was given.
In definite term tenancies, tenants must pay the entire term, no matter when they vacate the unit. Most definite term leases specify the type of notice needed to terminate the tenancy. This is usually either 30 or 60 days before the lease ends. If the lease has an automatic renewal provision, and a tenant does not give the landlord proper notice to vacate, the tenant may be held to an additional period of time. If, however, the automatic renewal is for two months or more, the landlord must give the tenant written notice and call his or her attention to the automatic renewal provision (or the automatic renewal provision will not be enforced).
Refund of Security Deposit
Once a tenancy ends, the landlord, within 21 days after the day the tenancy ends, must return a tenant’s security deposit plus simple, non-compounded interest, or give the tenant a written explanation as to why the deposit (or any part of it) will not be returned, provided the tenant has given the landlord a forwarding address. If the landlord fails to return the deposit or explanation in the time allowed, the landlord must pay the tenant a penalty equal to the amount withheld (plus interest) and also pay the tenant the amount of the deposit and interest wrongfully withheld.
If the tenant does not get the security deposit returned to him or her, or is dissatisfied with the landlord’s explanation for keeping the deposit, the tenant can sue the landlord in court. If the judge determines that the landlord acted in “bad faith,” the tenant may be awarded up to $500 in punitive damages. If the landlord has failed to provide a written explanation to the tenant, the landlord must return the withheld deposit within two weeks of the complaint being filed in court. Otherwise, the court will presume “bad faith.”
MINNESOTA LANDLORD-TENANT ATTORNEYS
There are a number of laws and regulations governing landlord-tenant law in Minnesota. Different laws govern different steps in the landlord-tenant relationship, including before, during and after the tenancy. If you are a tenant having issues with your landlord, it is important to contact an experienced Minnesota landlord-tenant attorney to protect your rights. Call the Minnesota landlord-tenant attorneys at RAM Law to schedule a free consultation.