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Landlord-Tenant Law

LANDLORD-TENANT LAW
Prepared by:
Ron Elwood, Staff Attorney
Legal Services Advocacy Project
651-222-3749, ext. 109
relwood@mnlsap.org


I. ABANDONED PROPERTY
Chapter 315, Sections 8, 9 and 15 (HF 2668)
Amends Minn. Stat. §§ 504B.271, subds. 1 and 2; and 504B.365, subd. 4

A. Notice
Changes the provisions for a mailed notice of a sale of abandoned property, requiring that the notice be sent by first-class and certified mail. Provides the 14-day notice period required is deemed to start upon deposit.
Amends Minn. Stat. § 504B.271, subd. 1(d)

B. Period Landlord Must Retain Property
Reduces period the landlord must retain abandoned property from 60 days to 28 days.
Amends Minn. Stat. § 504B.271, subd. 1(b)

C. Punitive Damages
Increases the landlord's liability for punitive damages for illegally removing, disposing of, or destroying abandoned property from $300 to twice the actual damages or $1,000, whichever is greater, in addition to actual damages (effectively treble damages).
Amends Minn. Stat. § 504B.271, subd. 2

D. Jurisdiction of the Courts
Provides that the court hearing the eviction action retains jurisdiction in disputes involving removal of personal property
Amends Minn. Stat. § 504B.365, subd. 4


II. APPLICANT SCREENING
Chapter 315, Section 4 (HF 2668)
Amends Minn. Stat. § 504B.173, subds. 1 - 4
Effective August 1, 2010

A. Receipt for Fee
Requires landlords, upon request of the applicant, to give receipts if the landlord holds or collects an applicant screening fee.
Amends Minn. Stat. § 504B.173, subd. 1

B. Sequential Screening Required
Prohibits landlords from using, cashing, or depositing an applicant screening fee until all prior applicants have either: (1) been screened and rejected; or (2) offered and declined a lease.
Amends Minn. Stat. § 504B.173, subd. 1

C. Disclosure of Rental Criteria
Requires written disclosure to a prospective tenant by a landlord accepting an applicant screening fee of the criteria on which the decision to rent to the prospective tenant will be based.
Amends Minn. Stat. § 504B.173, subd. 3

D. Notice of Rejection
Requires landlords to: (1) notify the applicant within 14 days of rejecting a rental application; and (2) identify the criteria the applicant failed to meet.
Amends Minn. Stat. § 504B.173, subd. 3

E. Return of the Applicant Screening Fee

1. If the Landlord Performs Screening
A landlord must return the entire amount of the fee if: (1) the applicant is rejected for failing to meet any criteria not disclosed; or
(2) a prior applicant is offered the unit and agrees to enter into a rental agreement.
Amends Minn. Stat. § 504B.173, subd. 2(a)

2. If the Landlord Does Not Perform Screening
A landlord must return any amount of the applicant screening fee that is not used for performing a personal reference check or obtaining a consumer credit report or tenant screening report.
Amends Minn. Stat. § 504B.173, subd. 2(b)

F. Potential Liability for Applicant for False or Omitted Information
Makes tenants liable to the landlord for damages, plus a civil penalty of up to $500, civil court filing costs, and reasonable attorney fees for providing materially false information on an application or omitting material information requested.
Amends Minn. Stat. § 504B.173, subd. 4

III. LATE FEES
Chapter 315, Section 5 (HF 2668)
Adds Minn. Stat. § 504B.177
Effective for leases entered into or renewed on or after January 1, 2011

A. Written Agreement Required
Prohibits late fees from being charged unless the tenant and landlord have agreed to the charge in writing, and requires the agreement to specify when the late will be imposed.
Adds Minn. Stat. § 504B.177(a)

B. Cap
Limits late fees to 8% of the overdue rent, and provides that a late fee charged or collected is considered neither interest nor liquidated damages.
Adds Minn. Stat. § 504B.177(a)

C. Exception for Subsidized Housing
Permits landlords in subsidized housing to follow any federal statute, regulation, or handbook provision governing late fees if the provision conflicts with the 8% cap.
Adds Minn. Stat. § 504B.177(b)

D. Failure to Earn Discount for Early Payment Not Considered "Late"
Provides that a payment is not considered late if is made beyond the date required to earn an early payment discount.
Adds Minn. Stat. § 504B.177(a)


IV. PENALTY FOR BAD FAITH RETENTION OF SECURITY DEPOSIT
Chapter 315, Section 6 (HF 2668)
Amends Minn. Stat. § 504B.178, subd. 7
Effective August 1, 2010

Increases the penalty for bad faith retention by a landlord of a security deposit from up to $200 to up to $500.


V. PENALTY FOR FAILURE TO DISCLOSE UTLITY COSTS
Chapter 315, Section 7 (HF 2668)
Adds Minn. Stat. § 504B.215, subd. 2a(c)
Effective August 1, 2010

Makes the failure to provide prospective tenants with the required notice of the total building's utility costs a violation of: (1) Minn. Stat. § 504B.161, subd. 1(1) -- the covenant of habitability providing that the premises and all common areas are fit for the use intended by the parties; and (2) Minn. Stat. § 504B.221 - which provides for recovery from the landlord of treble damages or $500, whichever is greater, and reasonable attorney's fees.


VI. PRESUMPTION OF RENT PAID BY MONEY ORDER
Chapter 315, Section 14 (HF 2668)
Adds Minn. Stat. § 504B.291, subd. 1
Effective August 1, 2010

Establishes a rebuttable presumption that the rent has been paid if the tenant produces a copy or copies of one or more money orders or produces one or more original receipt stubs evidencing the purchase of a money order, if the documents: (i) total the amount of the rent; (ii) include a date or dates approximately corresponding with the date rent was due; and (iii) in the case of copies of money orders, are made payable to the landlord. Provides the presumption is rebutted if the landlord produces a business record that shows that the tenant has not paid the rent and allows the landlord to introduce other evidence that rebuts the presumption.


VII. RECEIPT FOR RENT
Chapter 315, Section 2 (HF 2668)
Adds Minn. Stat. § 504B.118
Effective August 1, 2010

Requires a landlord receiving rent or other payments from a tenant in cash to provide a written receipt for payment: (1) immediately upon receipt if the payment is made in person; or (2) within three business days if payment in cash is not made in person.


VIII. RECOVERY OF ATTORNEY FEES
Chapter 315, Section 3 (HF 2668)
Adds Minn. Stat. § 504B.172
Effective for leases entered into on or after August 1, 2011, and for leases renewed on or after August 1, 2012

By operation of law, entitles a tenant to attorney fees in an action (whether affirmative or defensive) if the lease specifies that, in the same type of action and to the extent provided, the landlord is entitled to attorney fees.


IX. RENTERS' CREDIT
First Special Session, Chapter 1, Article 13, Section 4 (HF 1)
Effective May 22, 2010 for calendar year 2009 only, but also applicable to credits based on property taxes payable in 2010 that include gross rents paid in 2009

Makes a one-time reduction to the credit by changing the percentage on which it is based from 19% to 15% of rent constituting property taxes.

X. RIGHTS OF TENANTS IN FORECLOSED PROPERTIES
Chapter 315 (HF 3259)
Amends Minn. Stat. § 504B.285, subd. 1
Adds Minn. Stat. § 504B.285, subds. 1a, 1b, and 1c
Effective August 1, 2010

Meshes existing state law with the recently enacted Federal Protecting Tenants in Foreclosure Act of 2009 to ensure Minnesota tenants are provided with the maximum legal protections.

A. Tenancies Ending On or Before Expiration of Redemption Period

  • Extends federal protections requiring the immediate successor in interest to provide at least 90 days' written notice to vacate, beginning on the last day of the redemption period and effective no earlier than 90 days later;
  • Requires the tenant to pay the rent and abide by all terms of the lease; and
  • Covers evictions commenced on or before December 31, 2012.
    Adds Minn. Stat. § 504B.285, subds. 1a(a)

B. Tenancies Extending Beyond the Expiration of Redemption Period

  • Extends federal protections entitling a tenant with a "bona fide lease" to remain in possession until the expiration of the lease, provided the tenant pays the rent and abides by all terms of the lease;
  • Defines "bona fide lease" to mean: (1) the tenant must be other than a child, spouse, or parent of the mortgagor; (2) the lease transaction must be arms length; and (3) the rent must not be: (i) either subject to a federal, state; or local subsidy; or (ii) lower than fair market rent;
  • Adopts federal exception where either an immediate successor in interest or an immediate subsequent bona fide purchaser will occupy the unit as the primary residence. Requires in that case the immediate successor in interest to provide at least 90 days' written notice to vacate, beginning on the last day of the redemption period and effective no earlier than 90 days later; and
  • Covers evictions commenced on or before December 31, 2012.
    Adds Minn. Stat. § 504B.285, subds. 1a(b)

C. Section 8 Tenancies Extending Beyond the Expiration of Redemption Period

  • Extends federal protections entitling a Section 8 tenant to remain in possession until the expiration of the lease, provided the tenant pays the rent and abides by all terms of the lease;
  • Adopts federal exception where an immediate successor in interest will occupy the unit as the primary residence. Requires in that case the immediate successor in interest to provide at least 90 days' written notice to vacate, beginning on the last day of the redemption period and effective no earlier than 90 days later;
  • Covers evictions commenced on or before December 31, 2012.
    Adds Minn. Stat. § 504B.285, subds. 1a(c)

D. Tenancies in Properties Subject to Contracts for Deed
Retains current requirements for notice.
Adds Minn. Stat. § 504B.285, subds. 1b

E. Eviction Occurring On or After January 1, 2013
Reverts to existing state law requiring tenants holding over after expiration of the redemption period or the period of cancellation of a contract for deed to receive either:

  • at least two months' written notice to vacate no sooner than one month after the expiration of the time for termination, provided that the tenant pays the rent and abides by all terms of the lease; or
  • at least two months' written notice to vacate no later than the date of the expiration of the time for termination, if the sender holds the tenant harmless for breaching the lease by vacating the premises if the contract is reinstated.
    Adds Minn. Stat. § 504B.285, subds. 1c


XI. POSTING OF DISCONNECTION NOTICE IN MULTI-FAMILY BUILDINGS
Chapter 210, Sections 10 - 13 (HF 3259)
Amends Minn. Stat. § 504B.215, subd. 3
Effective August 1, 2010

Clarifies that a municipality, utility company, or other company supplying home heating oil, propane, natural gas, electricity, or water must post a disconnection notice in or on the building where the landlord failed to pay the bill.