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Minnesota Landlord Forms
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All Landlords and Managers Affected:
Major Changes to Landlord-Tenant Law Coming January 1, 2025
Significant updates to Minnesota landlord-tenant law are on the horizon. Landlords and property managers need to be aware of the extensive changes coming into effect on January 1, 2025, as a result of the May 2024 omnibus bill. This post provides a comprehensive overview of the key changes, highlighting practical implications and offering guidance for compliance.
1. Abandonment of Tenancy & Mitigation of Damages
The legislation introduces new defined terms for “abandonment of tenancy” and “abandonment of personal property” under Section 504B.001. These definitions are crucial, as they tie into Section 504B.154, which outlines landlord responsibilities in cases of abandonment.
Key takeaways:
- Landlords must make reasonable efforts to re-rent the unit at fair market value.
- If a new lease is signed, it terminates the old lease.
- Tenants are not liable for rent after the termination of the tenancy.
- The concept of “surrender” is introduced, requiring careful consideration of communication with tenants.
Practice tip: Landlords should familiarize themselves with the new definitions and procedures related to abandonment. Lease break fees may no longer be enforceable, and the concept of mitigating damages, familiar to commercial landlords, now applies to residential tenancies.
2. Tenant Right to Organize
New definitions for “tenant association” and “tenant organizer” are introduced, granting tenants expanded rights to organize and advocate for their interests.
Key takeaways:
- Landlords must allow tenant associations to conduct activities related to their establishment and organization.
- This includes leafleting, distributing materials, conducting surveys, and holding meetings.
- Landlords cannot prohibit peaceful assembly or the exercise of free expression.
- Reasonable rules regarding time, place, and manner of tenant activities are permissible.
3. Expanded Tenant Retaliation Rights
The legislation expands tenant protections against landlord retaliation.
Key takeaways:
- Landlords are prohibited from retaliatory actions such as increasing rent, decreasing services, or altering a lease in response to tenant actions like reporting code violations, requesting repairs, or joining a tenant association.
- While these protections are important, landlords should be aware of potential abuse and consider issuing breach of lease notices for false reporting.
4. Pet Fee Prohibition & Lease Disclosure
Landlords who allow pets and charge pet fees must now include a specific disclosure in their lease agreements.
Key takeaways:
- Leases must clearly state that pet fees or deposits cannot be charged for service or support animals.
- Landlords should ensure their leases are compliant with this new requirement by January 1, 2025.
5. Individual Taxpayer Identification Number (ITIN) on Rental Applications
Landlords must now provide applicants with the option to submit an ITIN in lieu of a Social Security Number (SSN) on rental applications.
Key takeaways:
- Applications must include a designated space for either SSN or ITIN.
- Landlords cannot deny an application solely because an ITIN is provided instead of an SSN.
- Landlords may need to adjust their screening processes to accommodate applicants who provide an ITIN.
6. Construction Delays and Occupancy
New provisions address situations where construction delays affect the availability of a rental unit.
Key takeaways:
- If a unit is unavailable for occupancy by the move-in date due to new construction, landlords must notify tenants within seven days and offer specific options:
- Equivalent alternative housing
- Rent payment equivalent
- Lease termination and full refund
- Landlords must reimburse tenants for various fees if alternative housing or rent payment is chosen.
- Tenants can terminate the lease if the unit is not available within 90 days of the move-in date.
7. Common Area Landlord Covenant
Landlord responsibilities regarding common areas are now explicitly defined in the statute.
Key takeaways:
- Landlords must keep common areas in reasonable repair, provide necessary services, and ensure compliance with health and safety laws.
- This expansion of landlord obligations provides tenants with additional grounds for legal action in cases of non-compliance.
8. Rental Application Eviction Denial Restrictions
Significant restrictions are placed on landlords’ ability to deny applications based on eviction history.
Key takeaways:
- Landlords cannot deny an application based on:
- Pending eviction actions
- Eviction records that are not public, have been expunged, or destroyed
- Eviction actions that did not result in a writ of recovery or order to vacate
- These restrictions necessitate a thorough review and update of rental criteria and application processes.
9. Late Fees for Housing Assistance Payments
Late fees can only be assessed on the portion of rent paid by the tenant, not the portion covered by housing assistance programs.
10. Condemnation Update
The definition of “condemnation” is broadened to include orders to vacate due to housing, health, or fire code violations, or rental licensing ordinance violations.
11. Mental Health or Health Crisis Updates
Landlords cannot penalize tenants for police or emergency calls related to mental health or health crises. This provision preempts local ordinances that may impose stricter requirements on landlords.
12. Victim of Violence Updates
Minor modifications are made to the existing victim of violence provisions, clarifying lease termination procedures and notice requirements.
13. Eviction Service and Notice Updates
New requirements are in place for eviction service and notice, including:
- Landlords must make a good faith attempt at electronic communication seven days before the hearing.
- Process servers must make two attempts at personal or substitute service before resorting to mail and posting.
- Posting must be on the individual unit door.
- Affidavits must include specific details about service attempts and electronic communication.
Conclusion
These sweeping changes to Minnesota landlord-tenant law require careful attention and proactive adaptation. Landlords and property managers must familiarize themselves with the new provisions and update their practices and documents accordingly to ensure compliance.
