Renting Out Your Property in Minnesota: A Guide for Landlords
Renting out property in Minnesota requires compliance with specific state laws governing landlord-tenant relationships, security deposits, and maintenance obligations. Minnesota landlords must understand the Minnesota Landlord and Tenant Act, fair housing laws, and local ordinances that may impose additional requirements in cities like Minneapolis and St. Paul.
Minnesota has tenant-friendly laws that include strict security deposit rules (requiring return within 21 days), specific maintenance standards, and strong protections against retaliation and discrimination. Failure to comply with these regulations can result in penalties up to three times the security deposit amount plus attorney fees.
Key Considerations
Scenarios
Decisions
Scenarios
Decisions
Scenarios
Decisions
Relevant Documents
Landlord's Rules and Regulations
A supplementary document to the lease that outlines specific rules for the property, such as quiet hours, guest policies, and maintenance responsibilities.
Move-In/Move-Out Inspection Checklist
A document that records the condition of the rental property before the tenant moves in and after they move out, which helps determine if any damage occurred during the tenancy.
Notice of Entry Form
A document used by landlords to notify tenants of their intent to enter the rental property, typically required by state law with specific advance notice periods.
Rental Application Form
A form used to collect information about potential tenants, including employment history, income, references, and authorization for background and credit checks.
Residential Lease Agreement
A legally binding contract between a landlord and tenant that outlines the terms and conditions of the rental arrangement, including rent amount, security deposit, lease duration, and other important provisions.
Security Deposit Receipt
A document acknowledging the landlord's receipt of the security deposit, including the amount, date received, and where the deposit will be held.
Relevant Laws
Minnesota Landlord-Tenant Law (Chapter 504B)
This is the primary statute governing rental properties in Minnesota. It covers essential aspects like lease requirements, security deposits, maintenance responsibilities, eviction procedures, and tenant rights. As a landlord in Minnesota, you must comply with these regulations to avoid legal issues.
Security Deposit Regulations (504B.178)
Minnesota law limits security deposits to no more than two months' rent. Landlords must return deposits within 21 days after tenancy ends, along with an itemized list of any deductions. Interest must be paid on deposits for properties with 12+ units. Failure to comply can result in penalties up to three times the wrongfully withheld amount plus attorney fees.
Covenant of Habitability (504B.161)
Minnesota landlords must keep rental properties fit for intended use, in reasonable repair, and in compliance with health and safety laws. This includes maintaining plumbing, heating, electrical systems, and addressing pest infestations. Tenants can withhold rent or take legal action if these standards aren't met.
Entry Notice Requirements (504B.211)
Landlords must provide reasonable notice (generally 24 hours) before entering a tenant's unit except in emergencies. This law balances a landlord's right to access their property with a tenant's right to privacy and peaceful enjoyment.
Minnesota Human Rights Act (363A.09)
This law prohibits discrimination in housing based on race, color, creed, religion, national origin, sex, marital status, disability, public assistance status, familial status, or sexual orientation. As a landlord, you must ensure your tenant screening and rental practices don't violate these fair housing provisions.
Lead-Based Paint Disclosure (Federal Law)
For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards before leases take effect. This includes providing an EPA-approved information pamphlet and specific warning language in leases.
Eviction Procedures (504B.281-504B.371)
Minnesota has specific legal procedures for evicting tenants, including proper notice requirements and court filings. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal. Understanding these procedures is crucial to legally remove problematic tenants.
Regional Variances
Twin Cities Metro Area
Minneapolis has some of the strictest rental regulations in Minnesota, including rent control provisions passed in 2021. Landlords must obtain rental licenses, provide written notice of tenant rights, and follow specific security deposit rules. The city also has 'just cause' eviction protections and requires landlords to pay relocation benefits in certain situations. Additionally, Minneapolis enforces strict inspection requirements and energy disclosure mandates for rental properties.
St. Paul implemented a 3% rent control cap in 2022, limiting annual rent increases with some exceptions for new construction. Landlords must register rental properties with the city and comply with Truth-in-Sale of Housing (TISH) requirements. St. Paul also has specific tenant protection ordinances, including requirements for advance notice of sale and tenant opportunity to purchase in certain situations.
Bloomington requires rental licenses for all rental properties and conducts regular inspections. The city has enacted tenant protection ordinances that require landlords to provide 90-day notice before non-renewal of affordable housing leases and offer relocation assistance in certain circumstances.
Greater Minnesota
Duluth requires rental licenses and has a rental safety program with mandatory inspections. The city has enacted a source of income protection ordinance that prohibits landlords from discriminating against tenants based on their use of housing vouchers or other public assistance.
Rochester has a rental property registration program and conducts regular inspections. The city has enacted a Tenant Protection Ordinance that requires landlords to provide 30-day written notice before terminating or not renewing leases and prohibits retaliation against tenants who report code violations.
Mankato requires rental registration and has specific occupancy limits that differ from other parts of the state. The city enforces a rental density ordinance in certain neighborhoods, limiting the percentage of rental properties allowed within specific areas.
College Towns
St. Cloud has specific regulations addressing student housing, including stricter occupancy limits in areas near St. Cloud State University. The city requires rental licenses and has neighborhood density restrictions limiting the number of rental properties in certain residential areas.
Winona has implemented a 30% rule in certain neighborhoods, limiting rental licenses to no more than 30% of homes on any block. This controversial ordinance was designed to maintain neighborhood character in areas near Winona State University but has significant implications for property owners wanting to rent their homes.
Northfield, home to St. Olaf College and Carleton College, has specific rental regulations addressing student housing. The city requires rental licenses and has enacted occupancy limits that restrict the number of unrelated individuals who can live together, which particularly affects student rentals.
Suggested Compliance Checklist
Research Minnesota Landlord-Tenant Laws
1 days after startingFamiliarize yourself with Minnesota's landlord-tenant laws, particularly Minnesota Statutes Chapter 504B. Understanding these laws is crucial before renting out your property to avoid legal issues. Key areas to research include security deposit limits, notice requirements, tenant rights, and landlord obligations.
Obtain Necessary Licenses and Permits
7 days after startingCheck with your local municipality about rental licensing requirements. Many Minnesota cities require landlords to obtain a rental license or permit before renting out property. Requirements vary by location, but often include property inspections to ensure compliance with local housing codes.
Prepare Rental Property Business License Application
14 days after startingComplete the application for your rental property business license as required by your local municipality. This typically includes providing property information, owner details, and paying applicable fees. Some cities may require proof of property insurance and compliance with building codes.
Create a Comprehensive Rental Application Form
21 days after startingDevelop a rental application that collects necessary information from potential tenants while complying with fair housing laws. The application should include employment verification, income information, rental history, and authorization for background and credit checks. Be careful not to include questions that could be considered discriminatory under Minnesota's fair housing laws.
Draft a Residential Lease Agreement
28 days after startingCreate a legally compliant lease agreement that clearly outlines the terms of tenancy. In Minnesota, this should include rent amount and due date, lease term, security deposit details, maintenance responsibilities, and other key provisions. Make sure to include all disclosures required by Minnesota law, such as information about who is authorized to enter the premises and receive service of process.
Prepare Lead-Based Paint Disclosure Form
30 days after startingFor properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Prepare this form and provide tenants with an EPA-approved pamphlet about lead-based paint. Even if you're unsure about lead paint in your property, this disclosure is legally required for pre-1978 buildings.
Create a Move-In/Move-Out Inspection Checklist
35 days after startingDevelop a detailed checklist to document the condition of the property at move-in and move-out. This helps prevent disputes about security deposit deductions. Include spaces to note the condition of walls, floors, appliances, fixtures, and other property elements, with room for both landlord and tenant signatures.
Establish Landlord's Rules and Regulations
40 days after startingCreate a document outlining house rules that aren't covered in the lease. This may include policies on guests, noise, smoking, pet restrictions, garbage disposal, and common area usage. Ensure these rules don't contradict tenant rights under Minnesota law or provisions in your lease agreement.
Prepare a Security Deposit Receipt
42 days after startingCreate a receipt for security deposits that includes the amount received, date of receipt, and where the deposit will be held. In Minnesota, landlords must return security deposits within 21 days after the tenant vacates, along with an itemized list of any deductions. Having a proper receipt system helps document compliance with this requirement.
Draft a Notice of Entry Form
45 days after startingCreate a form to notify tenants when you need to enter the rental property. Minnesota law requires landlords to provide reasonable notice (typically 24 hours) before entering a tenant's unit except in emergencies. This form should include the date, time, and purpose of entry.
Set Up Property Insurance
50 days after startingObtain appropriate landlord insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. You'll need a landlord policy that covers property damage, liability protection, and potentially loss of rental income.
Establish Rent Collection System
55 days after startingSet up a system for collecting and tracking rent payments. Consider online payment options, which provide documentation of payment history. Be aware that Minnesota law has specific requirements regarding late fees (they must be reasonable and specified in the lease) and grace periods.
Research Fair Housing Requirements
60 days after startingUnderstand federal and Minnesota fair housing laws to avoid discrimination claims. These laws prohibit discrimination based on race, color, national origin, religion, sex, familial status, disability, sexual orientation, gender identity, and receipt of public assistance. Learn proper screening procedures that comply with these laws.
Create Maintenance Request Procedures
65 days after startingEstablish a clear system for tenants to request repairs and maintenance. Minnesota landlords have a legal obligation to keep rental properties in reasonable repair and maintain habitability. Document your maintenance procedures to demonstrate compliance with these requirements.
Prepare for Annual Rental License Renewal
70 days after startingSet up a system to track and comply with annual rental license renewal requirements. Many Minnesota municipalities require periodic inspections and license renewals. Missing these deadlines can result in penalties or even prohibition from renting your property.
Task | Description | Document | Days after starting |
---|---|---|---|
Research Minnesota Landlord-Tenant Laws | Familiarize yourself with Minnesota's landlord-tenant laws, particularly Minnesota Statutes Chapter 504B. Understanding these laws is crucial before renting out your property to avoid legal issues. Key areas to research include security deposit limits, notice requirements, tenant rights, and landlord obligations. | - | 1 |
Obtain Necessary Licenses and Permits | Check with your local municipality about rental licensing requirements. Many Minnesota cities require landlords to obtain a rental license or permit before renting out property. Requirements vary by location, but often include property inspections to ensure compliance with local housing codes. | - | 7 |
Prepare Rental Property Business License Application | Complete the application for your rental property business license as required by your local municipality. This typically includes providing property information, owner details, and paying applicable fees. Some cities may require proof of property insurance and compliance with building codes. | Rental Property Business License | 14 |
Create a Comprehensive Rental Application Form | Develop a rental application that collects necessary information from potential tenants while complying with fair housing laws. The application should include employment verification, income information, rental history, and authorization for background and credit checks. Be careful not to include questions that could be considered discriminatory under Minnesota's fair housing laws. | Rental Application Form | 21 |
Draft a Residential Lease Agreement | Create a legally compliant lease agreement that clearly outlines the terms of tenancy. In Minnesota, this should include rent amount and due date, lease term, security deposit details, maintenance responsibilities, and other key provisions. Make sure to include all disclosures required by Minnesota law, such as information about who is authorized to enter the premises and receive service of process. | Residential Lease Agreement | 28 |
Prepare Lead-Based Paint Disclosure Form | For properties built before 1978, federal law requires landlords to disclose known information about lead-based paint hazards. Prepare this form and provide tenants with an EPA-approved pamphlet about lead-based paint. Even if you're unsure about lead paint in your property, this disclosure is legally required for pre-1978 buildings. | Lead-Based Paint Disclosure Form | 30 |
Create a Move-In/Move-Out Inspection Checklist | Develop a detailed checklist to document the condition of the property at move-in and move-out. This helps prevent disputes about security deposit deductions. Include spaces to note the condition of walls, floors, appliances, fixtures, and other property elements, with room for both landlord and tenant signatures. | Move-In/Move-Out Inspection Checklist | 35 |
Establish Landlord's Rules and Regulations | Create a document outlining house rules that aren't covered in the lease. This may include policies on guests, noise, smoking, pet restrictions, garbage disposal, and common area usage. Ensure these rules don't contradict tenant rights under Minnesota law or provisions in your lease agreement. | Landlord's Rules and Regulations | 40 |
Prepare a Security Deposit Receipt | Create a receipt for security deposits that includes the amount received, date of receipt, and where the deposit will be held. In Minnesota, landlords must return security deposits within 21 days after the tenant vacates, along with an itemized list of any deductions. Having a proper receipt system helps document compliance with this requirement. | Security Deposit Receipt | 42 |
Draft a Notice of Entry Form | Create a form to notify tenants when you need to enter the rental property. Minnesota law requires landlords to provide reasonable notice (typically 24 hours) before entering a tenant's unit except in emergencies. This form should include the date, time, and purpose of entry. | Notice of Entry Form | 45 |
Set Up Property Insurance | Obtain appropriate landlord insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. You'll need a landlord policy that covers property damage, liability protection, and potentially loss of rental income. | - | 50 |
Establish Rent Collection System | Set up a system for collecting and tracking rent payments. Consider online payment options, which provide documentation of payment history. Be aware that Minnesota law has specific requirements regarding late fees (they must be reasonable and specified in the lease) and grace periods. | - | 55 |
Research Fair Housing Requirements | Understand federal and Minnesota fair housing laws to avoid discrimination claims. These laws prohibit discrimination based on race, color, national origin, religion, sex, familial status, disability, sexual orientation, gender identity, and receipt of public assistance. Learn proper screening procedures that comply with these laws. | - | 60 |
Create Maintenance Request Procedures | Establish a clear system for tenants to request repairs and maintenance. Minnesota landlords have a legal obligation to keep rental properties in reasonable repair and maintain habitability. Document your maintenance procedures to demonstrate compliance with these requirements. | - | 65 |
Prepare for Annual Rental License Renewal | Set up a system to track and comply with annual rental license renewal requirements. Many Minnesota municipalities require periodic inspections and license renewals. Missing these deadlines can result in penalties or even prohibition from renting your property. | - | 70 |
Frequently Asked Questions
In Minnesota, a valid lease agreement should include: names of all parties, property address, lease term, rent amount and due date, security deposit details, maintenance responsibilities, and rules regarding entry notice. While oral leases can be legally binding for terms less than one year, written leases are strongly recommended for all rental arrangements to avoid disputes.
Minnesota law does not set a maximum limit on security deposits, but landlords typically charge the equivalent of one or two months' rent. You must return the security deposit within 21 days after the tenant vacates the property, along with an itemized list of any deductions. Interest must be paid on deposits held for more than one year at a rate of 1% per year.
Minnesota landlords must disclose: lead-based paint hazards (for properties built before 1978), the name and address of the property owner or authorized manager, outstanding inspection orders, pending condemnation proceedings, and whether the property has been condemned. You must also disclose if the property was used for methamphetamine production if it occurred within the past year.
In Minnesota, landlords must provide 'reasonable notice' before entering a tenant's unit for non-emergency matters. While the law doesn't specify an exact timeframe, 24 hours is generally considered reasonable. The notice should include the purpose for entry. You may enter without notice only in emergencies that threaten safety or property damage.
Legal grounds for eviction in Minnesota include: non-payment of rent, violation of lease terms, damage to property, illegal activities on the premises, or refusal to vacate after lease expiration. You must follow proper legal procedures by serving appropriate written notice and filing an eviction action (unlawful detainer) with the court. Self-help evictions, such as changing locks or removing belongings, are illegal.
In Minnesota, landlords can consider criminal history when screening tenants, but blanket policies rejecting all applicants with any criminal record may violate fair housing laws. You should individually assess each applicant, considering factors like the nature and severity of the offense, when it occurred, and evidence of rehabilitation. Some cities like Minneapolis have additional 'ban the box' ordinances limiting when criminal history can be considered.
Minnesota has no statewide rent control, so landlords can generally increase rent by any amount when a lease ends. However, you must provide proper notice before implementing increases: at least one rental period plus one day (typically 31 days for month-to-month tenancies). During a fixed-term lease, rent cannot be increased unless the lease specifically allows for it. Some municipalities may have their own rent control ordinances.
Minnesota landlords must maintain rental properties in compliance with health and safety codes, including providing: adequate heat (68°F minimum during winter), running water, electricity, proper sanitation facilities, and reasonable security measures. You must make all necessary repairs to keep the premises fit for the use intended by the parties. The property must also comply with local building, health, and safety codes.
Snow removal responsibilities should be clearly outlined in your lease agreement. In single-family home rentals, tenants often handle snow removal, while landlords typically maintain common areas in multi-unit buildings. Many Minnesota municipalities have ordinances requiring sidewalks to be cleared within 24-48 hours after snowfall. Regardless of who handles snow removal, the landlord remains ultimately responsible for compliance with local ordinances.
If a tenant abandons the property in Minnesota, you must make reasonable efforts to re-rent it to mitigate damages. You can claim unpaid rent for the period until the unit is re-rented or the lease expires, whichever comes first. If the tenant leaves personal property behind, you must store it for 28 days and provide written notice to the tenant about claiming their belongings before disposing of them.