Minnesota Residential Lease Agreement

Introduction

This comprehensive guide covers the essential requirements and regulations for residential lease agreements in Minnesota. The information is based on Minnesota Statutes Chapter 504B and includes all mandatory disclosures, security deposit rules, rent payment terms, landlord entry rights, and lease termination procedures.

Required Disclosures

Minnesota law requires landlords to provide nine specific disclosures to tenants before or at the time of lease execution. These disclosures ensure transparency and protect tenant rights.

Covenant Prohibiting Unlawful Activities

Every residential lease must include a covenant where both landlord and tenant agree that neither shall commit any of the following acts on the property: ^[1]

Required Covenant Language:

Both the Landlord and Tenant agree that neither shall commit any of the following acts on the Property:

Allow Controlled Substances in Those Premises or in the Common Area and Curtilage of the Premises in Violation of Any Criminal Provision of Chapter 152;

Allow Prostitution or Prostitution-Related Activity As Defined in Section 617.80, Subdivision 4, to Occur on the Premises or in the Common Area and Curtilage of the Premises;

Allow the Unlawful Use or Possession of a Firearm in Violation of Section 609.66, Subdivision 1a, 609.67, or 624.713, on the Premises or in the Common Area and Curtilage of the Premises; or

Allow Stolen Property or Property Obtained by Robbery in Those Premises or in the Common Area and Curtilage of the Premises; and

the Common Area and Curtilage of the Premises Will Not Be Used by Either the Landlord or Licensor or the Tenant or Licensee or Others Acting Under the Control of Either to Manufacture, Sell, Give Away, Barter, Deliver, Exchange, Distribute, Purchase, or Possess a Controlled Substance in Violation of Any Criminal Provision of Chapter 152. the Covenant Is Not Violated When a Person Other Than the Landlord or Licensor or the Tenant or Licensee Possesses or Allows Controlled Substances in the Premises, Common Area, or Curtilage, Unless the Landlord or Licensor or the Tenant or Licensee Knew or Had Reason to Know of That Activity.

Financial Distress Notice

If the landlord's property is subject to foreclosure proceedings or a deed cancellation has been issued, the tenant may not legally sign a lease for more than a two-month period. The landlord must disclose this information before lease execution. ^[2]

Landlord and Manager Contact Information

The lease agreement must disclose the name and address of: (a) the property owner, (b) the property manager or other person authorized to manage the premises, and (c) an agent authorized to accept service of process and receive legal notices. ^[3]

Lead-Based Paint Disclosure

Federal law requires landlords to provide lead-based paint disclosures for all properties constructed before 1978. This includes a disclosure form and the EPA pamphlet "Protect Your Family from Lead in Your Home."

Outstanding Inspection Orders and Code Violations

If the premises have any outstanding inspection orders or property code violations that affect health or safety, the landlord must provide copies of these citations to the tenant. For non-threatening violations, a summary notice must be posted. ^[4]

Disclosure of All Fees

All fees charged to the tenant must be disclosed in the lease agreement. The sum of the total rent and all fees must be clearly described as the "Total Monthly Payment" on the first page of the lease. ^[5]

Option for Move-In Inspection

If a landlord collects a security deposit, they must notify the tenant of their right to request and participate in a move-in inspection. This notification must be provided either at the start of the tenancy or within 14 days of the tenant's move-in date. ^[6]

Service and Support Animals

Landlords cannot impose additional fees, charges, or deposits for service animals or emotional support animals. These animals are exempt from pet policies and pet-related fees. ^[7]

Submetered Utility Disclosure

In buildings with submetered utilities, landlords must base utility bills on actual submeter readings. Estimated billing is not permitted under Minnesota law. ^[8]

Security Deposits

Maximum Amount

Minnesota law does not establish a maximum limit for security deposit amounts. Landlords may charge any amount agreed upon with the tenant. ^[9]

Interest Requirements

Landlords must hold the security deposit in an account that bears simple (non-compounded) interest at a rate of 1% per annum. Any interest amount less than $1.00 need not be paid to the tenant. ^[9]

Return Timeline

The landlord must return the security deposit, along with accrued interest, within three weeks (21 days) after the termination of the tenancy. The deposit is considered returned on time if mailed as first-class mail within this timeframe. ^[9]

Itemized Statement for Withholding

If the landlord withholds any portion of the security deposit, they must provide the tenant with a written itemized statement explaining the specific reasons for the withholding. Permissible deductions include: (a) unpaid rent or other financial obligations, and (b) costs to restore the premises to its original condition, excluding ordinary wear and tear. ^[9]

Rent Payment Terms

When Rent Is Due

Rent is due on the date specified in the lease agreement. Minnesota law does not establish a mandatory grace period for rent payments. If rent is not paid by the due date, it is considered overdue.

Late Fees

Late fees must be specified in the lease agreement and may not exceed 8% of the overdue rent payment. Landlords cannot charge late fees that exceed this statutory maximum. ^[10]

Returned Check (NSF) Fees

Minnesota law does not establish a specific maximum for returned check fees. However, any NSF fee charged must be reasonable and should be disclosed in the lease agreement.

Tenant Right to Withhold Rent

If the landlord fails to make necessary repairs that affect the habitability of the unit, the tenant may withhold rent and deposit it with the court administrator. The tenant must first provide written notice to the landlord of the needed repairs. ^[11]

Landlord's Right to Enter

Standard Access Requirements

The landlord may enter the rented premises only for a reasonable business purpose and after making a good faith effort to provide the tenant with at least 24 hours' advance notice. The notice must specify a time or anticipated window of entry. ^[12]

Unless the landlord and tenant agree otherwise, entry may only occur between 8:00 a.m. and 8:00 p.m. The tenant may consent to shorter notice, but the landlord cannot make such consent a condition of the lease. ^[12]

Emergency Access Without Notice

The landlord may enter the property without prior notice if they reasonably believe that immediate entry is necessary to: (a) prevent injury to persons or property, (b) determine the tenant's safety or well-being, or (c) comply with local ordinances regarding unlawful activity. ^[12]

Lease Termination and Early Release

Month-To-Month Lease Termination

Medical Facility Relocation

If a tenant's health condition requires them to relocate to a medical care facility, nursing home, or assisted living facility, the tenant may break the lease without penalty. The tenant (or their authorized representative) must provide the landlord with two months' written notice before terminating the lease. ^[14]

Landlord's Duty to Mitigate Damages

If a tenant abandons the property during the lease term, the landlord has a legal obligation to undertake reasonable efforts to re-rent the unit at a fair rental value. The landlord cannot simply leave the property vacant and charge the tenant for the entire remaining lease term. ^[16]

Property Abandonment

Abandoned Personal Property

If a tenant abandons the rental property and leaves behind personal belongings, the landlord must store and care for the abandoned property for at least 28 days. After this period, the landlord may dispose of the property. ^[15]

Utility Nonpayment

If utilities are included in the rent or the landlord directly bills the tenant for utility costs, and the tenant fails to pay, the landlord may bring an eviction action for nonpayment. The landlord cannot simply shut off utilities as a self-help remedy. ^[17]

Legal Disclaimer

This document provides general information about Minnesota residential lease requirements based on Minnesota Statutes Chapter 504B. It is not legal advice and should not be used as a substitute for consultation with a qualified Minnesota real estate attorney. Laws and regulations may change, and individual circumstances may affect the application of these rules. For specific legal questions about your lease agreement or landlord-tenant situation, please consult with a licensed attorney.