Minnesota Rental Lease Agreement Templates are to be used for residential and commercial property by landlords, property owners, and tenants. A lease itself is an agreement, usually created by the landlord, that gives a place for a tenant to live. A lease may be verbal but should always be in writing especially if the lease term is longer than 1 year which is a state law. A lease must be in writing if a dwelling is in a building with 12 or more other units in Minnesota.
Form Description Types
Your legal rights as a tenant depends on the type of lease you sign, whether it’s a residential, commercial, fixed term, or periodic. These factors greatly change the influence on your rights. No matter what type of lease a tenant signs, the landlord must give a copy of the signed (executed) lease to the tenant. If a landlord fails or refuses to do so, they can be held guilty of a petty misdemeanor and further consequences if the tenant pushes to file suit. Therefor it’s equally as important for a landlord to know the laws and regulations when it comes to renting/leasing property.
Landlords are only allowed to charge an application fee once at a time for a unique unit. Meaning they can not take in multiple application for the same apartment at the same time. This would be a unfair to the applications. A landlord may charge a “reasonable” amount for the application fee. The state of Minnesota does not have a limit as to the amount a landlord may charge. Upon receiving an application fee, the landlord must in return give the tenant a receipt and any unused money that was left over from the process of the application.
Sometimes called a Damage Deposit, there are no laws limiting the amount a landlord can charge a tenant for a security deposit. Typically the worse the credit score the tenant has, the more the landlord will charge for security. The deposit shall bear simple non-compounded interest at the current interest rate. Unless otherwise stated in the lease, the landlord can increase the security deposit during the course of the lease with proper written notice.
Return of Security Deposit
The security deposit shall be returned within three weeks after termination of the tenancy or after receipt of the tenant’s mailing address or delivery instructions, return the deposit to the tenant, with interest.
If a property is of high demand, a landlord may require a pre-lease deposit as earnest money to let them know that the tenant is serious and interested in renting the property. In order for this to work, it must be in writing. If the tenant ends up renting the property after the application process, the pre-lease deposit should go towards the security deposit or rent. If the landlord turn the tenant down, the money shall be returned. If the tenant is accepted to rent the property and then turns it down, the landlord may keep the pre-lease deposit.
The rent amount, when it’s paid, and who is responsible for paying should all be included and clearly stated within the lease agreement. If rent and the late fee go unpaid, the landlord can start the eviction process with a written “Notice to Quit” to the tenant.
Rent payments should be paid on the day stated within the lease agreement.
Minnesota law has maxed the amount that can be charged as a periodic late fee at 8% of the unpaid rent.
Raising the Rent
Under a fixed term lease, the landlord can not raise the rent until the lease has come to an end. Only with a periodic lease, like a month to month lease agreement can the landlord raise the rent with proper written notice of one full rental period plus one day.
An eviction can occur if there is a breach in contract by the tenant. An eviction only occurs on a fixed term lease since with a periodic lease, the landlord can submit written notice to end the lease within one rental term (usually 1 month). Since a landlord can not physically remove the tenant themselves, they must go through the district court and obtain an “Unlawful Detainer” action.