On January 1, 2024, numerous amendments to Minnesota’s landlord-tenant statute (Minn. Stat. § 504B) went into effect. The changes affect virtually all residential landlord-tenant leasing relationships and disputes in the State of Minnesota, and require careful attention from all residential landlords who lease properties in Minnesota. The changes to Minnesota’s landlord-tenant laws are substantial, and impose a series of new requirements for residential lease agreements, inspections, tenant rights, and eviction actions.

Importantly, some of the new requirements carry monetary penalties, fines, and even attorneys’ fees shifting in favor of tenants if a landlord is found to be out of compliance. While landlords’ potential monetary liability for noncompliance may seem relatively small for isolated violations, the liability could increase exponentially for landlords who have large-scale residential leasing operations.

Here are the top 10 changes all residential landlords should know as the new laws take effect:

  1. New Requirements for Pre-Eviction Notices: Under the prior version of § 504B.321, landlords could file a residential eviction action the moment rents became overdue. Under the amended statute, however, landlords are now subject to additional written notice requirements before they are able to commence an eviction action. Landlords are now required to issue a written pre-eviction notice to the tenant at least 14 days prior to filing an eviction, which must include: (1) the total amount due; (2) a specific accounting of the amount of the total due from unpaid rent, late fees, and other charges under the lease; (3) the name and address of the person authorized to receive rent and fees on behalf of the landlord; and (4) various statements and notices (the specific verbiage for which is spelled out in the statute) regarding (a) where a tenant should go to obtain legal representation or financial assistance, and (b) how long the tenant has to pay any outstanding rents in order to avoid eviction proceedings.
  2. Tenants No Longer Required to Post Security for Evictions: In residential eviction actions, Minnesota courts may no longer require that tenants pay money to the landlord or court, or post bond or other security. However, the courts may still require that the tenant post security if the final disposition of the eviction action is delayed for more than 10 days.
  3. Tenant Right to Redeem: Minnesota residential tenants now have new mechanisms to avoid eviction—where an eviction action is based on nonpayment of rent, the amended landlord-tenant statute gives tenants a new right to redeem the leased property by obtaining a guarantee from: (a) a federal or state agency or local government; or (b) any other tax-exempt organization and that administers a government rental assistance program.
  4. Tenant Privacy Protections and Penalties: Under the new statute, landlords are required to provide tenants with at least 24 hours advance notice before entering any residential rental property, subject to certain limited exceptions. The notice of entry “must specify a time or anticipated window of time of entry and the landlord may only enter between the hours of 8:00 a.m. and 8:00 p.m. unless the landlord and tenant agree to an earlier or later time.” Landlords are also prohibited from requiring tenants to waive these notice requirements by lease agreement or otherwise. If a landlord violates these requirements, they may be subject to substantial penalties payable to tenant, including a rent reduction up to full rescission of the lease, recovery of damage deposits, up to a $500 civil penalty for each violation, and recovery of tenants’ attorneys’ fees.
  5. New Fee Disclosure Requirements and Penalties: The revised statute adds a requirement that landlords expressly disclose “all nonoptional fees” in residential lease agreements and advertisements. To satisfy this requirement, the first page of all lease agreements and all advertisements for residential properties must disclose the sum total of rent and all nonoptional fees charged to tenants, which must be described as the “Total Monthly Payment,” as well as a disclosure regarding whether utilities are or are not included in the rent. Landlords who violate these new requirements may be liable for treble damages and tenants’ attorneys’ fees.
  6. New Initial and Final Inspections Requirements: The amended statute adds entirely new initial and final inspection requirements. Landlords must now give written notices to tenants of the option to request an inspection of their unit both at the beginning and end of their lease term. The purpose of these inspections is to give tenants the right to “identify existing deficiencies” in the unit to “avoid deductions” from the tenant’s security deposit. If requested by the tenant, the landlord must ensure that the move-in inspection occurs within 14 days of the residential tenant occupying the unit, and that the move-out inspection occurs within five days before the termination of the tenancy. In lieu of these inspections, and provided a tenant agrees, the landlord can provide photos or video of the unit. The landlord’s obligations under these provisions cannot be waived or otherwise altered via lease agreement.
  7. New Temperature Requirements: An entirely new requirement related to minimum temperature for residential rentals has been added. For any rental units that do not have an independent tenant-controlled thermostat, landlords are now required to “supply or furnish heat at a minimum temperature of 68 degrees Fahrenheit from October 1 through April 30, unless a utility company requires and instructs the heat to be reduced.” This requirement may have significant effects on buildings controlled by large boiler units or utilizing radiator-sourced heat, where heating may not be uniformly distributed within a building.
  8. New Tenant Rights to Seek Relief Against Landlords: Under Minnesota’s prior landlord-tenant laws, tenants could only seek emergency relief against landlords in court in certain limited situations, such as loss of necessary utilities or other services provided by the landlord. Under the amended statute, however, tenants are able to seek judicial relief for a wider variety of property-related issues including, among other things: (1) the revocation of necessary rental licensing; (2) animal infestations; (3) a nonfunctioning refrigerator; (4) a nonfunctioning air conditioner; (5) a nonfunctioning elevator; or (6) any other “conditions, services, or facilities that pose a serious and negative impact on health or safety.”
  9. Longer Termination Requirements for At-Will Tenants: Previously, landlords and tenants were allowed to terminate an at-will tenancy by providing the other with notice at least 14 days before termination. Under the amended statute, landlords and tenants may only terminate an at-will tenancy by providing written notice at least as long as the interval between the time rent is due or three months, whichever is less.
  10. New Tenant Right to Terminate for Health Reasons: Under the amended statute, tenants have a new right to terminate their leases due to medical reasons. Tenants looking to utilize this termination right must provide documentation showing that the tenant has been “found by a medical professional to need to move into a medical care facility,” and that the tenant either requires medical assistance for daily living activities or has a “functional impairment” due to physical or mental illness. Tenants must abide by specific notice and timing requirements in order to terminate a residential lease agreement due to health reasons.

LOOKING AHEAD

While the full impact of these changes (including some seemingly broad “catch-all” provisions) remains to be seen, the substantive changes to the duties and obligations imposed on landlords could potentially create a significant risk of litigation, monetary damages, and other penalties for noncompliant landlords. If you have questions about the new landlord-tenant updates, leasing requirements, or language changes,  Winthrop & Weinstine is here to help. Our deep bench of experienced attorneys can assist you in navigating Minnesota’s revamped landlord-tenant laws with the aim to avoid future potential legal exposure.

March 7, 2024