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HOME Line
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Homelinemn.org
Tenant/Landlord Law Resource Book
     If you enjoyed today’s speech, you may find HOME Line’s book on
                   Minnesota tenant/landlord law useful.
                                                  200+ pages outlining practical advice:
HOME Line wrote How to Be
the Smartest Renter on Your                     •Shopping for an Apartment
                                                •Applying for an Apartment
Block to help renters find, get                 •Housing Discrimination
and keep rental housing. This                   •Understanding Leases
book is based on the real-life                  •Neighbors & Roommates
                                                •Privacy Violations
concerns we hear from                           •Repairs
thousands of callers to our                     •Retaliation
tenant hotline. It gives the best               •Ending a Lease
ways to handle and avoid the                    •Rent Increases
                                                •Evictions
most common rental problems.                    •Lockouts & Utility Shutoffs
A great resource for attorneys                  •Security Deposits
who occasionally hear questions                 •Abandoned Property
                                                •Landlord Foreclosures
about housing and                               •Manufactured (Mobile) Homes
tenant/landlord law.                            •Subsidized Housing
Cost: Paperback $20 (plus                       •Caretakers & Other Employees of the
                                                Landlord
taxes and shipping)                             •Renters Credit (CRP)
Also available as a                             •Tenant Organizing
digital e-book for $9.99                        •Form letters & other resources

                                          www.homelinemn.org/book
Application
• Vacancy Rate
• Screening Purpose:
  – Criminal
  – Rental
  – Credit History
Application Fees
        Extra Rules after 8/1/2010
•   Written Criteria
•   Return Fee if denied for non-criteria reason
•   Cash one fee at a time
•   $500 Penalty for lying on application
Discrimination Law #1
• Protected classes:
   – Race, color, creed, gender, marital status, family status,
     sexual orientation, religion, disability, national origin,
     public assistance status.
• Not Protected
   – Age (except St. Paul)
   – Packers v. Vikings
   – Personal Animosity
Discrimination Law #2-
                Children
• Cannot directly or indirectly discriminate against
  children as opposed to adults
• New child in family
   – Birth, adoption, written transfer from guardian
  – 6 month notice directed to > 1 yr. anniversary
• MN. Stat. § 504B.315
Covenants of Habitability
• Fit for use intended
• Reasonable repair
• Must meet health and safety codes
  – Includes weatherization
• MN Stat. § 504B.161
• Tenant must be fairly compensated, in
  writing, for any maintenance (lawn, snow)
Bedbugs
• Who pays for it?
• Calls from 41 different counties
• To make tenant pay, must be able to prove
  “willful, malicious or irresponsible”
  conduct of tenant
• Practical advice
• MN Stat. § 504B.161
Late Fees
               Rule until 1/1/2011

• Must be in lease
   – Daily fee probably unenforceable
• Must:
   – Not be a penalty
   – Be reasonable estimate of average cost of dealing with
     lateness
   – Cost not be certain on day one
• Gorco Construction Company v. Stein, 99 N.W.2d
  69 (Minn. 1959)
Late Fees
               Rule after 1/1/2011

•   Must be in lease
•   Capped at 8% per rental period
•   Minn § 504B.177
•   Federal Rule--if exists--pre-empts State Law
•   “Reasonable” probably defaults to State Law
Attorney Fees
• Many leases state that a tenant must pay the
  landlords attorney fees if the landlord takes
  legal action
• New law makes this lease term “bi-lateral”
  automatically. If the tenant wins, the
  landlord owes their attorney fees
• Minn. Stat. § 504B.172
Foreclosure
• Lender gives notice (about 4-6 weeks) of Sheriff’s
  Sale
   – Lender likely “wins” the Sheriff Sale Auction
• For next 6 months, Owner/Landlord can “redeem”
  (pay off) the entire bid = mortgage plus costs
   – During 6 months, Landlord remains Landlord
   – If redeemed, Landlord remains Landlord going forward
Foreclosure II
• Bona fide tenant (BFT) protected past redemption period
   – Tenants are entitled to 90 day notice to vacate
   – A lease running beyond the redemption period is still in
     force.
• BFT gets minimum 90 day notice after redemption period
• BFT may live out lease past the 90 days unless owner will
  occupy unit
• Penalty in Minn. Stat. § 504B.178 for riding out deposit,
  does not apply in month 6 of redemption period.
EVICTIONS
• History of “self-help”
• Purpose of an eviction
  – Execution of Writ of Recovery of Premises
    Order to Vacate (MN Stat. § 504B.365)
  – Ultimate goal of any eviction -- possession, not
    $$$
  – Winner gets the apartment
Reasons for Evictions
•   Non-payment of Rent
•   Holding Over
•   Drugs/Guns/Prostitution/Contraband
•   Other Breaches (Lease Violations)
    – Must be “Material Breach”
    – Lease allows eviction for the breach
      (re-entry clause) Bauer v. Knoble
General Eviction Defenses
• Service of Process
   – At least 7 day notice required
      •   Substitute service
      •   “Nail & Mail”
      •   Anybody but Plaintiff can serve
      •   Governed by MN Stat. § 504B.331
• Disclosure of Owner/Agent
   – Name and street address required
   – Governed by MN Stat. § 504B.181
• Winter/Pregnancy/Children: Not Defenses
Defense to Non-Payment
               Evictions
• Redemption (MN Stat. § 504B.291)
• Partial-payment (MN Stat. § 504B.291)
• “I paid it.”
   – Eff. 8/1/10, landlord must give receipt for cash and
     money order receipts are presumptive proof of payment
• Fritz defense
• Improper late fees
• “I didn’t owe it.”
Defenses to Holding Over
• Bad Notice
  – “Short” notice under the lease
  – Not “month and a day” (MN Stat. § 504B.135)
  – Not written (MN Stat. § 504B.135)
• Illegal Discrimination
• Retaliation or MN Stat. § 504B.205
• Waiver by Acceptance of Rent (Pappas v.
  Stark)
Defenses to Breach & Drugs
                  etc.
•   “I didn’t do it.”
•   No re-entry clause in lease
•   Lease doesn’t prohibit
•   Not “material”
•   Guests not in tenant’s control
•   Waiver by acceptance of rent (Kenny v. Si
    Sue Lun)
Security Deposits
• Landlord has 3 weeks from:
  – Termination of the tenancy: and
  – Receipt of tenant’s forwarding address
• Within 3 weeks, Landlord must send:
  – Either the full deposit plus interest, or
  – A security deposit disposition letter
  – Postmark sufficient
Deductions from Deposits
• Landlord can only deduct for physical
  damages beyond “ordinary wear and tear”
  – Landlord does not have to paint or
    change carpets between tenants
• If debt still owed by tenant
• Security Deposits covered in MN Stat.
  § 504B.178. Any contrary lease
  terms unenforceable.
If Landlord doesn’t comply
         with 21-day rule
           Tenant can sue for:
• Full amount of withheld deposit + interest
• An amount equal to withheld deposit +
  interest (“shall”)
• Punitive damages up to $500 (begins
  8/1/2010) (“may”)
Sample Deposit Problem
•   Withheld deposit       $500
•   + Interest (1 Year)        5
•   Multiplied by 2        1010
•   +500 Punitive            500
•   Total                 $1,510
Abandoned Property
• No Eviction
   – Landlord must store property for 60 days (28 days after
     8/1/2010), on or off premises
   – Tenant can recover property by giving landlord 24-hour
     written demand (48 hours if stored off site)
   – Covered by MN Stat. § 504B.271
• Following Eviction
   – Landlord must do inventory of property pursuant to
     MN Stat. 504B.365
   – Landlord must store property same as if by no eviction
     or store in bonded warehouse (sheriff removes)
• After 60 days (28 days after 8/1/2010), landlord
  can dispose of property
   – If warehouse used, landlord & warehouse have a lien
Tenant/Landlord Law Resource Book
     If you enjoyed today’s speech, you may find HOME Line’s book on
                   Minnesota tenant/landlord law useful.
                                                  200+ pages outlining practical advice:
HOME Line wrote How to Be
the Smartest Renter on Your                     •Shopping for an Apartment
                                                •Applying for an Apartment
Block to help renters find, get                 •Housing Discrimination
and keep rental housing. This                   •Understanding Leases
book is based on the real-life                  •Neighbors & Roommates
                                                •Privacy Violations
concerns we hear from                           •Repairs
thousands of callers to our                     •Retaliation
tenant hotline. It gives the best               •Ending a Lease
ways to handle and avoid the                    •Rent Increases
                                                •Evictions
most common rental problems.                    •Lockouts & Utility Shutoffs
A great resource for attorneys                  •Security Deposits
who occasionally hear questions                 •Abandoned Property
                                                •Landlord Foreclosures
about housing and                               •Manufactured (Mobile) Homes
tenant/landlord law.                            •Subsidized Housing
Cost: Paperback $20 (plus                       •Caretakers & Other Employees of the
                                                Landlord
taxes and shipping)                             •Renters Credit (CRP)
Also available as a                             •Tenant Organizing
digital e-book for $9.99                        •Form letters & other resources

                                          www.homelinemn.org/book

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Evictions & Tenant Screenings

  • 2. Tenant/Landlord Law Resource Book If you enjoyed today’s speech, you may find HOME Line’s book on Minnesota tenant/landlord law useful. 200+ pages outlining practical advice: HOME Line wrote How to Be the Smartest Renter on Your •Shopping for an Apartment •Applying for an Apartment Block to help renters find, get •Housing Discrimination and keep rental housing. This •Understanding Leases book is based on the real-life •Neighbors & Roommates •Privacy Violations concerns we hear from •Repairs thousands of callers to our •Retaliation tenant hotline. It gives the best •Ending a Lease ways to handle and avoid the •Rent Increases •Evictions most common rental problems. •Lockouts & Utility Shutoffs A great resource for attorneys •Security Deposits who occasionally hear questions •Abandoned Property •Landlord Foreclosures about housing and •Manufactured (Mobile) Homes tenant/landlord law. •Subsidized Housing Cost: Paperback $20 (plus •Caretakers & Other Employees of the Landlord taxes and shipping) •Renters Credit (CRP) Also available as a •Tenant Organizing digital e-book for $9.99 •Form letters & other resources www.homelinemn.org/book
  • 3. Application • Vacancy Rate • Screening Purpose: – Criminal – Rental – Credit History
  • 4. Application Fees Extra Rules after 8/1/2010 • Written Criteria • Return Fee if denied for non-criteria reason • Cash one fee at a time • $500 Penalty for lying on application
  • 5. Discrimination Law #1 • Protected classes: – Race, color, creed, gender, marital status, family status, sexual orientation, religion, disability, national origin, public assistance status. • Not Protected – Age (except St. Paul) – Packers v. Vikings – Personal Animosity
  • 6. Discrimination Law #2- Children • Cannot directly or indirectly discriminate against children as opposed to adults • New child in family – Birth, adoption, written transfer from guardian – 6 month notice directed to > 1 yr. anniversary • MN. Stat. § 504B.315
  • 7. Covenants of Habitability • Fit for use intended • Reasonable repair • Must meet health and safety codes – Includes weatherization • MN Stat. § 504B.161 • Tenant must be fairly compensated, in writing, for any maintenance (lawn, snow)
  • 8. Bedbugs • Who pays for it? • Calls from 41 different counties • To make tenant pay, must be able to prove “willful, malicious or irresponsible” conduct of tenant • Practical advice • MN Stat. § 504B.161
  • 9. Late Fees Rule until 1/1/2011 • Must be in lease – Daily fee probably unenforceable • Must: – Not be a penalty – Be reasonable estimate of average cost of dealing with lateness – Cost not be certain on day one • Gorco Construction Company v. Stein, 99 N.W.2d 69 (Minn. 1959)
  • 10. Late Fees Rule after 1/1/2011 • Must be in lease • Capped at 8% per rental period • Minn § 504B.177 • Federal Rule--if exists--pre-empts State Law • “Reasonable” probably defaults to State Law
  • 11. Attorney Fees • Many leases state that a tenant must pay the landlords attorney fees if the landlord takes legal action • New law makes this lease term “bi-lateral” automatically. If the tenant wins, the landlord owes their attorney fees • Minn. Stat. § 504B.172
  • 12. Foreclosure • Lender gives notice (about 4-6 weeks) of Sheriff’s Sale – Lender likely “wins” the Sheriff Sale Auction • For next 6 months, Owner/Landlord can “redeem” (pay off) the entire bid = mortgage plus costs – During 6 months, Landlord remains Landlord – If redeemed, Landlord remains Landlord going forward
  • 13. Foreclosure II • Bona fide tenant (BFT) protected past redemption period – Tenants are entitled to 90 day notice to vacate – A lease running beyond the redemption period is still in force. • BFT gets minimum 90 day notice after redemption period • BFT may live out lease past the 90 days unless owner will occupy unit • Penalty in Minn. Stat. § 504B.178 for riding out deposit, does not apply in month 6 of redemption period.
  • 14. EVICTIONS • History of “self-help” • Purpose of an eviction – Execution of Writ of Recovery of Premises Order to Vacate (MN Stat. § 504B.365) – Ultimate goal of any eviction -- possession, not $$$ – Winner gets the apartment
  • 15. Reasons for Evictions • Non-payment of Rent • Holding Over • Drugs/Guns/Prostitution/Contraband • Other Breaches (Lease Violations) – Must be “Material Breach” – Lease allows eviction for the breach (re-entry clause) Bauer v. Knoble
  • 16. General Eviction Defenses • Service of Process – At least 7 day notice required • Substitute service • “Nail & Mail” • Anybody but Plaintiff can serve • Governed by MN Stat. § 504B.331 • Disclosure of Owner/Agent – Name and street address required – Governed by MN Stat. § 504B.181 • Winter/Pregnancy/Children: Not Defenses
  • 17. Defense to Non-Payment Evictions • Redemption (MN Stat. § 504B.291) • Partial-payment (MN Stat. § 504B.291) • “I paid it.” – Eff. 8/1/10, landlord must give receipt for cash and money order receipts are presumptive proof of payment • Fritz defense • Improper late fees • “I didn’t owe it.”
  • 18. Defenses to Holding Over • Bad Notice – “Short” notice under the lease – Not “month and a day” (MN Stat. § 504B.135) – Not written (MN Stat. § 504B.135) • Illegal Discrimination • Retaliation or MN Stat. § 504B.205 • Waiver by Acceptance of Rent (Pappas v. Stark)
  • 19. Defenses to Breach & Drugs etc. • “I didn’t do it.” • No re-entry clause in lease • Lease doesn’t prohibit • Not “material” • Guests not in tenant’s control • Waiver by acceptance of rent (Kenny v. Si Sue Lun)
  • 20. Security Deposits • Landlord has 3 weeks from: – Termination of the tenancy: and – Receipt of tenant’s forwarding address • Within 3 weeks, Landlord must send: – Either the full deposit plus interest, or – A security deposit disposition letter – Postmark sufficient
  • 21. Deductions from Deposits • Landlord can only deduct for physical damages beyond “ordinary wear and tear” – Landlord does not have to paint or change carpets between tenants • If debt still owed by tenant • Security Deposits covered in MN Stat. § 504B.178. Any contrary lease terms unenforceable.
  • 22. If Landlord doesn’t comply with 21-day rule Tenant can sue for: • Full amount of withheld deposit + interest • An amount equal to withheld deposit + interest (“shall”) • Punitive damages up to $500 (begins 8/1/2010) (“may”)
  • 23. Sample Deposit Problem • Withheld deposit $500 • + Interest (1 Year) 5 • Multiplied by 2 1010 • +500 Punitive 500 • Total $1,510
  • 24. Abandoned Property • No Eviction – Landlord must store property for 60 days (28 days after 8/1/2010), on or off premises – Tenant can recover property by giving landlord 24-hour written demand (48 hours if stored off site) – Covered by MN Stat. § 504B.271 • Following Eviction – Landlord must do inventory of property pursuant to MN Stat. 504B.365 – Landlord must store property same as if by no eviction or store in bonded warehouse (sheriff removes) • After 60 days (28 days after 8/1/2010), landlord can dispose of property – If warehouse used, landlord & warehouse have a lien
  • 25. Tenant/Landlord Law Resource Book If you enjoyed today’s speech, you may find HOME Line’s book on Minnesota tenant/landlord law useful. 200+ pages outlining practical advice: HOME Line wrote How to Be the Smartest Renter on Your •Shopping for an Apartment •Applying for an Apartment Block to help renters find, get •Housing Discrimination and keep rental housing. This •Understanding Leases book is based on the real-life •Neighbors & Roommates •Privacy Violations concerns we hear from •Repairs thousands of callers to our •Retaliation tenant hotline. It gives the best •Ending a Lease ways to handle and avoid the •Rent Increases •Evictions most common rental problems. •Lockouts & Utility Shutoffs A great resource for attorneys •Security Deposits who occasionally hear questions •Abandoned Property •Landlord Foreclosures about housing and •Manufactured (Mobile) Homes tenant/landlord law. •Subsidized Housing Cost: Paperback $20 (plus •Caretakers & Other Employees of the Landlord taxes and shipping) •Renters Credit (CRP) Also available as a •Tenant Organizing digital e-book for $9.99 •Form letters & other resources www.homelinemn.org/book