Minnesota Rental Law Changes 2025

Minnesota rental law changes 2024

2025 comes with a new set of rental laws on top of Minnesota’s tenant friendly rental law changes for 2024.  Note, this is not legal advice and is a summary of the changes from training provided by our lawyer.  The Minnesota statutes related to rental laws are available online.

Application/Screening:
– Must provide option of ITIN as alternative to SSN.
– Landlords may only consider prior evictions if the case “resulted” in a writ (when a writ has been issued in the case). Landlords may not consider eviction cases that resulted in a dismissal, settlement where no judgment and writ was issued, or judgment in favor of the tenant.
– Landlords cannot deny applications based on records that are pending, confidential, expunged, or otherwise destroyed (such as eviction actions or criminal records).
– If Landlords require any pet deposits, rent, or fees, a Landlord must disclose how the fees are prohibited if the tenant has a reasonable accommodation.

Lease Disclosures:
– Late fees are limited to the tenant portion of rent for units subsidized by a government program.
– Must disclose prohibition of pet deposits, rent, and fees for SA/ESA animals.
– Multiple disclosures required for utilities under 216B and 504B (does not apply to MHPs).

Move in date delays due to new construction:
– If a unit falls under the definition “new construction” and the unit will not be available for occupancy by the
move-in date, the landlord is required to provide a specific notice within seven days of knowing the unit is
not available and prior to the move-in date, which includes options for alternative housing, compensation, or
lease termination.
– A landlord cannot accept rent/security deposit for a condemned premises, or for properties/units with an
order to vacate by a federal, state, or local government agency.

During the tenancy:
– Tenants have the right to establish and operate tenant associations.
– Utility billing changes required under 216B and 504B (does not apply to MHPs).

Termination of tenancy:
– Must mitigate damages and re-rent the unit if tenant abandons the unit.

Evictions:
– Landlords must give notice of eviction hearing through any regularly used electronic communication.
– Evictions cannot be filed against a tenant who provided a notice of termination under the victim of violence statute (until after the termination date).

Cannabis:
– Except for the use of medical cannabis flower or medical cannabinoid products, the vaporizing or smoking of cannabis flower, cannabis products, artificially derived cannabinoids, or hemp-derived consumer products is prohibited in a multifamily housing building, including balconies and patios appurtenant thereto. A violation of this paragraph is punishable through a civil administrative fine in an amount of $250. (Minn. Stat. § 342.56, subd. 1(b)).

Pests/Insects:
– Owners must resolve pest and insect infestation issues on the premises (section 504B.381, subdivision 1).

When tenant abandons the property:
– Once a tenant abandons a unit, the landlord must make efforts to rent the premises, such as marketing the
unit, responding promptly to inquiries, and processing applications.
– Once the premises is rented, the lease terminates and rent liability ends for the prior tenant on the date the
new tenancy begins.
– In a month-to-month tenancy, the maximum rent liability is equal to the notice period.
– Indications that a tenant abandoned the premises include, but are not limited to, written statements from
the tenant(s), the return of keys, the removal of personal possessions, and disconnection of utilities.

Termination of lease upon infirmity of tenant:
– If there are more than one tenant in the unit, then only one tenant needs to qualify to terminate the lease agreement.

Property manager must notify tenant of eviction hearing:
– It’s now on the property manager / landlord to notify the tenant of the date, time, and location of the eviction hearing at least 7 days in advance of the hearing via the method of communication the tenant uses (snail mail and notices taped to the door are apparently insufficient). Eviction case may be thrown out if PM or LL didn’t provide their own notice (504B.332, subd. 2(b)).
– The summons and complaint must be posted on the tenant’s individual door (not common building door), which means service agents will need access to the property if there is a secured entrance.

Victims of violence:
If there is only one tenant the lease terminates on the date in the notice, even if the tenant vacates earlier.
– If there are multiple tenants the lease terminates on the last day of the month or rent interval in which one
tenant terminates the lease.
– The notice may be in any regularly used form of communication.
o Example: The landlord and tenant regularly sent notices and repair requests through an online portal.
The resident will likely be permitted to send a notice through the portal.
– Landlords cannot file an eviction against the victim of violence that provides a notice of termination under
the statute, unless they fail to vacate after the termination date.
o Landlords are not prohibited from filing an eviction against the other tenants in the unit who did not give
a notice under the statute and are in violation of the lease.
– Penalties, damages, and attorney’s fees may be incurred for violations.
(504B.206, Subd. 1)

Tenant Right to Organize – Tenant Associations/Unions:(504B.212)
– Tenants have the right to establish and operate a tenant association, and conduct related activities.
– Landlord rules regarding the time, place, and manner of the meetings or communications must be
reasonable.
– Owner/Management or their representatives should not be involved in or attend meetings unless specifically
invited.
– Retaliation is prohibited, and the new law provides some guidance as to what type of conduct may be
considered as retaliation.

Shared utility meter building compliance (RUBS):
New statutes Minn. Stat. § 216B.022, § 216B.023, § 216B.024, § 504B.216 (Effective January 1, 2025). A
summary is provided due to the length of the new statutes’ text.  Shared utility billing laws have become so complicated that you may instead consider rolling the cost of utilities into the rent price.

1. Bill Payer/Disclosures

– Landlords of a shared-metered residential building must be the bill payer responsible and customer of
record.
– Landlords must advise the utility provider that the utility services apply to a shared-metered residential
building.
– Landlords are prohibited from removing or requesting to remove a directly metered tenant from the
tenant’s existing utility account.
– Tenant payments must first be applied to unpaid rent then unpaid utilities.

2. Prohibited Action
– Landlords are prohibited from billing sub-metered or apportioned utilities less frequently than the
Landlord is billed by the utility provider.
– Landlords are prohibited from charging any administrative, capital, or any other expenses associated
with the installation, maintenance, repair, replacement, or reading of submeters, unless the expense is
due to the tenant’s willful, malicious, or negligent conduct. (Administration fees up to $8 and late fees up
to $5 are permitted).
– Landlords are prohibited from imposing any other fees or charges for utility services, except as permitted
(administrative and late fees permitted).
– Landlords cannot apportion electricity service.
– Landlords cannot charge electricity for common areas, or in spaces used exclusively or primarily by the
Landlord.
– Landlords cannot charge for gas consumed in common areas, spaces used exclusively or primarily by the
landlord, or any vacant unit.
– Landlords cannot charge for water/sewer in common areas; in spaces used exclusively or primarily by the
landlord; in vacant units; for maintenance of the property; or for shared amenities, including but not
limited to laundry facilities and pools.
– Landlords cannot disconnect a tenant’s utility service for the failure to pay.

3. Lease Requirements
– Landlords must include notice of when utility bills will be issued.
– Landlords must include notice that “A landlord who apportions utility service must, upon a tenant’s
request, provide: (1) a copy of the current actual natural gas or water and sewer utility bill from the
utility provider that is being apportioned; and (2) a copy of past natural gas or water and sewer utility
bills for which the tenant received an apportioned utility bill for the preceding two years or from the
time the current landlord acquired the building, whichever is the most recent.”
– If natural gas or water/sewer is apportioned, the landlord must include a lease attachment with specific
language required by the statute.

4. Annual Notice Requirements
– By September 30 of each year, a landlord who bills a tenant for gas and/or electric must inform tenants
in writing of the availability of energy assistance from the low-income home energy assistance program
and include the toll-free phone number of the administering agency.

5. Bill Notice Requirements
– Landlords must include the following information on each submetered utility service bill:
– the present and last preceding sub-meter readings;
– the date of the present reading;
– the rate at which the utility service is being billed, the amount of the service billed at the rate, and
the rate at which the landlord is being billed by the utility provider for the utility service;
– the tenant’s portion of taxes and surcharges;
32- if any, the portion of any bill credit the landlord received from the utility provider that is credited to
the tenant;
– any administrative billing charge,
– the total amount of the bill; and
– the date by which payment is due; the date after which, if the bill is not paid, a late payment charge
may be imposed; and the late fee amount.

6. Permitted Fees
– Landlords may impose one late payment charge per billing period, not to exceed $5.
– Landlords may charge a single administrative charge per billing period for all the utilities separately
billed, not to exceed $8.

7. Submetered Electric
– Landlord may only charge for the unit’s usage multiplied by the rate charged to the landlord.
– Landlords may only charge the tenant’s pro rata share of non-usage charges, calculated by dividing the
charges the landlord is billed equally among the number of units in the building.
– Landlords must deduct the tenant’s pro rata share of any bill credits/adjustments received by the
landlord by dividing the credit/adjustment equally among the number of units in the building.

8. Submetered Gas
– Landlords may only charge for the unit’s usage multiplied by the rate charged to the landlord.
– Landlords may only charge the tenant’s pro rata share of non-usage charges, calculated by dividing the
charges the landlord is billed equally among the number of units in the building.
– Landlords must deduct the tenant’s pro rata share of any bill credits/adjustments received by the
landlord by dividing the credit/adjustment equally among the number of units in the building.

9. Apportioned Gas
– Landlords must use previous billing period’s actual gas bills and allocate the total bill to each unit based
on square footage.
– Landlord must deduct the tenant’s pro rata share of any bill credits/adjustments received by the
landlord.

10. Submetering Water
– Landlords may only charge for the unit’s measured usage multiplied by the rate charged to the landlord.
– Landlords may only charge the tenant’s pro rata share of non-usage charges, calculated by dividing the
charges the landlord is billed by the utility provider equally among the number of units in the building.
– Landlords must deduct a tenant’s pro rata share of any bill credits/adjustments from the utility provider
by dividing the credit/adjustment equally among the number of units in the building.

11. Apportioned Water/Sewer
– Landlords must use previous billing period’s actual water/sewer bills and allocate to each unit based on
the number of tenants listed on the lease as a proportion of the occupancy of all the units as listed on
the leases in the building.
– Landlords must deduct the tenant’s pro rata share of any bill credits/adjustments received by the
landlord.

12. Payment Plan & Notice Required
– A landlord must offer a payment plan for overdue utility service bills.
– The plan must be reasonable, consider the tenant’s financial circumstances, and consider any
extenuating circumstances disclosed by the tenant.
– If the landlord and tenant cannot agree on a payment plan, the landlord must inform the tenant of the
right to seek assistance from the commission’s consumer affairs office in resolving the dispute and
provide the tenant the office’s current telephone number and email address.

13. Billing Errors
– If a tenant suspects the submeter is inaccurate (and has an explanation for why they suspect the issue),
the landlord must promptly investigate.
– If an inaccurate submeter is found:
– The landlord must repair or replace the submeter, or inform the tenant in writing why no corrective
action is necessary.
33- If an overcharge is found, the landlord must promptly refund the difference.
– If an undercharge is found, the landlord may bill the tenant the difference up to six months, and
must offer a payment plan (at a minimum the plan must equal the time the undercharge occurred).
Exceptions may apply if Tenant caused the undercharge. No interest or delinquency fee may be
charged as part of a payment plan.
– If the submeter is accurate the landlord must provide the tenant with the results of a meter test.

14. Utility Bill Request
– A landlord who apportions utility service must, upon a tenant’s request, provide: (1) a copy of the
current actual natural gas or water and sewer utility bill from the utility provider that is being
apportioned; and (2) a copy of past natural gas or water and sewer utility bills for which the tenant
received an apportioned utility bill for the preceding two years or from the time the current landlord
acquired the building, whichever is the most recent.

15. Disputes/Notice Requirements
– A tenant disputing a bill or claiming a violation of §216B.022/§216B.023 must first attempt to resolve the
dispute or claim with the landlord.
– If the dispute cannot be resolved, the landlord must notify the tenant of the tenant’s right to file a
complaint with the commission’s consumer affairs office and provide the office’s current telephone
number and email address.

16. Evictions
– Tenant payments must first be applied to unpaid rent then unpaid utilities.
– A landlord may not bring an eviction unless the landlord has offered the tenant a payment plan, and the
tenant failed to make two consecutive payments on the plan.
– If the parties cannot agree on a payment plan, the landlord must inform the tenant of the right to seek
assistance from the commission’s consumer affairs office and provide the office’s current telephone
number and email address.
– An eviction action may not be filed, and any eviction already filed must be stayed:
– for failure

Nick Bartlett

Nick Bartlett

Real Estate Investor and Property Manager

 

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