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As a landlord in Minnesota, one of the most important things you can do for your rental business is to stay on top of property management regulations on both the federal and state levels. The success of your business depends in part on avoiding legal trouble, and the best way to start is learning about some of the most significant Minnesota landlord tenant laws that affect you.
This article will take a look at some of the most important property management laws in your state that you should know.
Rent Control is Banned in Minnesota
There is a statewide ban on rent control in Minnesota, meaning that no local government can pass a regulation restricting how much landlords can charge their tenants for rent. This means that, hypothetically, you could charge your tenants whatever you want. However, it is best to consider local pricing trends so that your properties stay competitive in the market. The median monthly rental price in Minnesota is $1,537.
Late Fees are Regulated
Minnesota regulates how much a landlord can charge for late fees in relation to the amount charged for rent. At most, you can charge your tenants 8% of the total rent cost as a late fee. For instance, if you charge the statewide monthly median of $1,537, a late fee could at most be $122.96.
It is worth noting that, unlike many states, Minnesota does not require landlords to give their tenants a grace period to pay rent, meaning that you can start charging late fees as soon as the rent collection date has passed.
Rental NSF (non-sufficient funds) fees are also regulated. If a tenant attempts to pay their rent via a check and that check ends up bouncing, you can charge them a fee of up to $30.
Rental Application Fees are Not Regulated
If you wish to charge a Minnesota rental application fee to prospective renters during the tenant screening process, there is no regulation in state law that restricts how much you can charge. However, you must return the full amount of the fee if the applicant is rejected for an undisclosed reason, if a prior applicant accepts, or if you don’t obtain any customer credit or tenant screening report.
Minnesota Builds on Federal Fair Housing Laws
All fifty states follow the guidelines of the federal Fair Housing Act, which outlaws any form of housing discrimination by landlords or real estate agents based on race, color, religion, gender, national origin, familial status, or disability.
However, it is important to know that Minnesota state law adds protections for discrimination on the basis of marital status, source of income, and sexual orientation. These laws particularly apply during the tenant screening process and are a good thing to keep in mind as you review applicants.
You Must Issue a Rent Demand Notice Before Evicting for Unpaid Rent
Let’s say that you have a tenant who, despite warnings and a number of late fees, has persistently failed to pay their rent. Before you can file a lawsuit with the court, eviction laws in Minnesota require you to first issue a rent demand notice. If they pay during this period, you cannot file for eviction on those grounds.
There is an important distinction between a grace period and the time given by a rent demand notice. In fact, the two must not overlap. If you choose to give your tenants a three-day grace period, for example, a tenant should in total have a minimum of seventeen days after the rent collection date to submit a rent payment without the threat of eviction.
When it comes to other lease violations or illegal activity on the property, Minnesota does not require any form of time for the tenant to resolve the issue. You can file for eviction right away if you choose. However, you should always give notice to the tenant if you plan on beginning the eviction process.
Conclusion
You undoubtedly want to do everything you can to protect the investments you’ve made in your rental business. A great first step to ensuring that your business avoids legal complications is doing the hard work of researching the laws in your state. Hopefully, this article has given you a strong foundation for how to make informed and compliant rental business decisions going forward.