Some US states like New York have laws in place to control rents in certain properties. Still, not all states approve this type of limit in a rent increase, as it can greatly affect landlords.
Understanding how rent control affects your private residential property is key if you want to avoid problems whenever you want to increase rent on your rental unit.
The following page will cover everything you should know about rent control in Minnesota.
- Does the Landlord Need a Reason to Raise Rent?: No
- Is There a Limit on Rental Prices?: No, except for Minneapolis and St. Paul.
- How Much Notice Is Required?: It depends on how often the tenant pays rent.
Minnesota Rent Control
To address the primary topic: No, the state of Minnesota doesn't have any rent control laws imposed on landlords. This means that landlords can charge as much as they want for their rental unit.
However, while Minnesota doesn't have state-wide rent control policies, it does allow local governments to establish control laws for rent if they're approved through elections. Overall, no home rule charter city, town, or county can impose these policies unless they're approved after an election.
There are two particular cases in Minnesota regarding cities that have been able to have a rent control ordinance for any private residential property. Let's address these cases in the next section.
Rent Stabilization Work Group
Minneapolis - Rent Stabilization Work Group
Back in 2021, the City Council in Minneapolis created the "Rent Stabilization Work Group" right after people voted in favor of rent control.
Even though there aren't currently limits for landlords who want to increase rents in the city, the Council is actively working to get a proposal to the people this year (2023).
Saint Paul - Rent Stabilization Ordinance
In November 2021, Saint Paul voters approved the "Residential Rent Stabilization Ordinance." This ordinance limits any rent increases within a 12-month period to 3%. Also, landlords can't add utility charges to comply with those rent increase laws.
The reason why Saint Paul voters approved this law was for any new tenant to have access to affordable housing without affecting the landlord's return on investment.
Even though this was already approved through a general election, landlords can request an exception if the new amount isn't considered a "reasonable return on investment."
Generally speaking, a reasonable return should be equal to the unit's base year net operating income, as well as 100% of any increase from the Consumer Price Index since that base year. Moreover, the Council will consider seven factors to determine if the request should be approved or not.
If property owners request this exception, the city staff will notify the tenants. The process involves:
- Completing and submitting a form.
- Going through a "Staff Determination" process to get approval.
Now, if any of the parties aren't satisfied with the determination, they can make an appeal with a hearing officer.
Minnesota Rent Increase
Now that we've addressed those two particular cases, let's cover the state law surrounding increases for tenants.
When Can You Raise Rent in Minnesota?
Unless you're in a city with rent control rules, you can raise the rent for any reason. However, there are a few cases where you're not able to do it.
First, you can't raise the rent in the middle of a lease term, unless you already included a clause in your lease stating that you could. On the other hand, you can't raise the rent for discriminatory or retaliatory reasons.
Regardless of the time period you consider to raise the rent, you must provide proper notice.
How Much Can You Raise Rent in Minnesota?
You can raise rent by any amount you consider appropriate, as long as you don't live in a city or county that has its own laws surrounding rental control.
Are There Any Exceptions to Rent Raises in Minnesota?
Landlords can't raise rent for discriminatory or retaliatory reasons. The Federal Fair Housing Act prohibits property owners from discriminating due to a person's:
- Sexual orientation
- Familial status
As for retaliation, it means landlords can't increase rent in response to an action their tenant did, including filing a complaint.
How Much Notice Should You Provide Your Tenant with?
The law states that the notice period should be equal to the frequency of the payments, although this period shouldn't be longer than three months.
If the tenant pays rent every two months, for example, then the notice period should be two months before raising the rent.
In the case of mobile home residents, landlords must provide notice 60 days before increasing the rent.
We hope this article has helped you understand the old and new rules surrounding rental payments in Minnesota. If you need more resources for your housing rental needs, make sure to check DoorLoop's pages.
Free Forms for Minnesota Landlords
Check out our free resources for Minnesota landlords.
Is There a Rent Limit in Minnesota?
No, although some cities like Minneapolis and St. Paul have them.
Are There Any State-wide Prohibitions for Rent Increases in Minnesota?
The state doesn't prohibit local governments from establishing rent control laws.
How Much Notice Do Landlords Have to Give Before Raising Rent in Minnesota?
The notice period should be equal to the frequency of rent payments, as long as this frequency doesn't go over three months.
Is There an Exemption to the 3% Limit for Landlords?
Yes. Landlords can request an exception to this limit if the "City" finds that the limit goes against the "reasonable return on investment" rule.
- Charter Commission Rent Stabilization Work Group - City of Minneapolis
- Steps for Requesting Rent Increase Exception
- Rent Stabilization Rules and Processes (2022) | Saint Paul Minnesota
- Sec. 471.9996 MN Statutes
- Minnesota Eviction Laws: The Process & Timeline In 2023
- Minnesota Security Deposit Laws | Deductions & Rights