Changes in the Minnesota landlord and tenant laws require you to know your rights. Please read and be aware of these new changes.

1. New Landlord and Tenant Law Changes in Minnesota
By Renters Warehouse and Brenton Hayden
Some law changes have gone into effect recently that impact you as a landlord here in
Minnesota. Renters Warehouse wants to make sure your practices are in compliance with the
following:
Receipt for Rent
A landlord is now required to immediately provide a written receipt for rent or other payments
paid in cash if payment is made in person or within 3 business days if payment is not made in
person. No particular form of receipt is required, so you can keep it simple. However many
office supplies companies have receipt books that are carbon copy. This gives you and your
renter a receipt. When dealing with cash, proper documentation is the key to good
bookkeeping.
Applicant Screening Fees
1. A landlord may not collect or hold an applicant screening fee without providing a written
receipt for the fee upon request of the applicant. You can incorporate the receipt into the
application form so you don't have to give anything additional to the applicant who requests a
receipt.
2. A landlord may not use, cash, or deposit an applicant screening fee until all prior applicants
have either been screened and rejected, or offered the unit and declined to enter into a rental
agreement. A landlord must also return the applicant screening fee if a prior applicant is offered
the unit and agrees to enter into a rental agreement.
3. A landlord must disclose in writing, prior to taking the applicant screening fee, the criteria
on which the decision to rent will be based. Screening criteria are important to ensure that each
applicant is treated the same and that applicants know on what basis their application will be
accepted or rejected. This is commonly known as your “Resident Selection Criteria”. If you have
not yet developed written screening criteria you should devote thoughtful consideration and
might consider consulting legal counsel before simply adopting standard screening criteria. Here
is an example.
EXAMPLE: Resident Selection Criteria
Resident Selection and Tenant Screening Criteria:

2. Fair Housing Statement - We are a fair housing provider. We do not discriminate against
persons on the basis of race, color, religion, national origin, sex, familial status, disability, creed,
marital status, public assistance, ancestry, and sexual or affectional orientation.
Application Requirements - Your application must be filled out completely and accurately. An
incomplete application may be rejected or not processed. Any misstatements or omissions
made on your application, whether or not discovered before you move into the building, is
grounds for denial of an application or termination of an existing lease. Information must be
legible and verifiable. If information given on the application cannot be checked out and
verified, this is a reason for rejection. Omission of information, such as an address or employer,
may be grounds for rejection.
Identification and Application Process - Every person over 18 must be screened and must
provide a government-issued photo ID.
Housing History - Applicants must have a positive housing history. We require the name and last
known telephone number of each landlord/property manager/mortgage or contract for deed
payee for each address you have had for the last three years. Roommate references are not
acceptable. A positive housing history is one of the most important things considered in
screening an application. The refusal of a prior landlord to give a reference, or a negative
reference, may be grounds for rejection. In the case of first time renters, young people, or
students, this requirement may be varied subject to additional requirements of management.
Eviction Filings - Unlawful detainers or evictions may be a basis for rejection of an application.
Credit - A positive credit history is required. An adverse bank or credit reference, high debt, past
due or dishonored debt, or the absence of a credit history may be grounds for rejection.
Income - Income from valid sources must be sufficient to pay the applicant’s rent and other
predictable living expenses. To be counted as household income, amounts must be verifiable,
reliable, and predictable.
Business Relationship - The relationship between a landlord and tenant is a business
relationship. A courteous and businesslike attitude is required from both parties. We reserve the
right to refuse rental to anyone who is verbally abusive, swears, is disrespectful, makes threats,
has been drinking, is argumentative, or in general displays an attitude at the time of the unit
showing and application process that causes management to believe we would not have a
positive business relationship.
Occupancy - Maximum number of residents equal to two persons per bedroom.
Criminal History - Applicants who have a criminal history may be rejected.
Employment Standard: All Applicants must be employed. The employment must be verifiable.
End Example.

3. 4. A landlord must notify the applicant within 14 days of rejection, identifying the criteria the
applicant failed to meet and must return the applicant screening fee if the applicant is rejected
for any reason not listed in the required disclosure. Sometimes there is a combination of factors
relevant to the resident selection process and the landlord should make clear that multiple
factors informed the overall decision.
5. A prospective tenant who provides materially false information on the application or omits
material information requested is liable for damages, plus a civil penalty of up to $500, civil
court filing costs, and reasonable attorney fees.
Abandoned Property
If a resident abandons personal property, a landlord must only retain the property for 28 days. A
14 day notice to the resident before disposing of the property is required ONLY if the
landlord plans to sell the property. If the landlord elects to discard or do anything other than sell
the property, no notice is required by state law.
Late Fees
Late fees for failing to pay rent on time are now limited to 8% of the overdue rent payment. The
only exception to this is if a federal statute, regulation, or handbook provides for federally
subsidized properties to charge late fees that conflict with the 8% limitation.
Attorney Fees
Residential leases that contain a provision providing that management may collect attorney fees
from the resident will now be construed to provide residents the right to collect attorney fees if
successful in a legal action. Resident collection of attorney fees will be limited to the same type
of action, circumstances, and to the same extent that management would be allowed to collect
from the resident under the lease.
Staying up to speed on the changes in legislation is very vital to running a successful rental
property. Failing to do so can cost you lost of money and create un-wanted liability for you and
your business. This is one main reason many choose to hire a professional property
management company like Renters Warehouse. It is part of our job to have our ear to the
ground and protect the best interests of the landlord and tenant. To find out how Renters
Warehouse can help you, contact them today at 952.470.8888 or info@renterswarehouse.com
Shared and Co-written by Brenton Hayden, Golden Valley- MN, CEO of RentersWarehouse.com