Minnesota lease agreement requirements: what landlords must include

In Minnesota, a residential lease must disclose who manages the property and who accepts legal notices, and the landlord must share certain outstanding inspection and condemnation orders before signing. Chapter 504B also requires one percent simple interest on deposits, return within three weeks after the tenancy ends, and five landlord covenants that apply to every residential lease.

What disclosures must a Minnesota landlord make?

Minnesota Statutes 504B.181, subdivision 1, requires the landlord to disclose, “either in the rental agreement or otherwise in writing prior to commencement of the tenancy,” the name and address of the person authorized to manage the premises and of the landlord or an agent authorized to accept service of process and receive notices and demands.

Subdivision 2 adds a posting rule: a printed or typewritten notice with the same information must be placed in a conspicuous place on the premises. Putting the names and addresses in the lease and posting the notice covers both requirements.

Section 504B.195 requires the landlord, before a prospective tenant signs a lease or pays rent or a security deposit, to disclose outstanding inspection orders for which a citation has been issued for violations that threaten health or safety, along with outstanding condemnation orders and declarations that the premises are unfit for human habitation. An initial repair order whose deadline has not yet passed does not have to be disclosed.

What covenants does Minnesota law read into every lease?

Section 504B.161, subdivision 1, lists five covenants the landlord makes in every residential lease. First, the premises and all common areas are fit for the use intended by the parties. Second, the landlord will keep the premises and common areas in reasonable repair, including extermination of pests, except for disrepair caused by the tenant's willful, malicious, or irresponsible conduct.

Third, the landlord will make the premises reasonably energy efficient by installing weatherstripping, caulking, storm windows, and storm doors when the energy savings will exceed the cost over ten years. Fourth, the landlord will keep the property in compliance with applicable health and safety laws, including rental licensing ordinances. Fifth, the landlord will furnish heat at a minimum of 68 degrees Fahrenheit in all places intended for habitation, including kitchens and bathrooms, from October 1 through April 30, unless a utility company requires and instructs the heat to be reduced.

These duties cannot be signed away. Subdivision 2 allows a landlord and tenant to agree that the tenant will perform specified repairs or maintenance, but only with adequate consideration and in a conspicuous writing. Even then, “no such agreement, however, may waive the provisions of subdivision 1 or relieve the landlord or licensor of the duty to maintain common areas.”

In practice, the covenants shape the maintenance section of the lease. A lease can shift specified repairs to the tenant only through the kind of agreement subdivision 2 describes. Otherwise, the repair duty stays with the landlord, whatever the rest of the lease says.

How much interest does a Minnesota landlord owe on a security deposit?

Section 504B.178, subdivision 2, requires “simple noncompounded interest at the rate of one percent per annum” on the deposit. The interest goes back to the tenant along with the deposit.

Here is the arithmetic. On a deposit held for two years, the interest equals the deposit times one percent times two, which is 2 percent of the deposit. Because the interest does not compound, no interest is earned on earlier interest.

When must a Minnesota landlord return a security deposit?

Within three weeks after the tenancy ends. Section 504B.178, subdivision 3, requires the landlord to return the deposit with interest, or to give “a written statement showing the specific reason for the withholding of the deposit or any portion thereof,” within that time.

If the tenant leaves because the building was legally condemned, the deadline is five days after the tenant leaves. A move-out checklist that asks for a forwarding address helps the deposit and any statement reach the tenant on time.

A landlord who fails to follow these rules owes the tenant the withheld amount plus interest as a penalty, under subdivision 4. If the landlord kept the deposit in bad faith, a court may add punitive damages of up to $500 for each deposit, under subdivision 7.

How much notice ends a month-to-month lease in Minnesota?

Section 504B.135 states: “A tenancy at will may be terminated by either party by giving notice in writing. The time of the notice must be at least as long as the interval between the time rent is due or three months, whichever is less.”

For a month-to-month tenancy, rent is due every month, so either side gives at least one full rental period of written notice. For rent paid weekly, the notice is one week. The three-month cap matters only when rent is due less often than every three months, such as once a year.

Count backward from the move-out date so the full notice period fits before it, and keep a dated copy of the notice. A lease can restate the rule so both sides know it from the start.

What other rules should a Minnesota lease reflect?

Late fees: section 504B.177 bars a late fee unless the tenant and landlord have agreed in writing that one may be imposed, and it caps the fee at “eight percent of the overdue rent payment.” The late fee clause belongs in the lease.

Entry: section 504B.211 lets a landlord enter only for a reasonable business purpose and after a good faith effort to give the tenant reasonable notice. The statute calls for at least 24 hours' notice and limits entry to between 8:00 a.m. and 8:00 p.m. unless the landlord and tenant agree otherwise.

A lease that lists the required disclosures, the deposit and interest terms, the notice rule, the late fee, and the entry limits in one place gives both parties a clear record. The five covenants apply whether or not the lease mentions them. A clause that conflicts with a covenant or with the deposit rules does not change what the statute requires, so drafting it correctly the first time prevents a later dispute.

Sources

• Minnesota Statutes 504B.181 (disclosure of manager and agent)
• Minnesota Statutes 504B.195 (disclosure of inspection and condemnation orders)
• Minnesota Statutes 504B.161 (covenants of landlord)
• Minnesota Statutes 504B.178 (security deposits and interest)
• Minnesota Statutes 504B.135 (terminating a tenancy at will)
• Minnesota Statutes 504B.177 (late fees)
• Minnesota Statutes 504B.211 (landlord entry)