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What Is a Minnesota Residential Lease Agreement?

A Minnesota residential lease agreement is a contract between a landlord and tenant for renting a dwelling. Minnesota imposes mandatory deposit interest, an 8% late-fee cap, structured entry-notice rules, and strong habitability protections backed by a statutory rent-escrow process. St. Paul maintains an active rent-stabilization ordinance, adding a local layer for landlords in that jurisdiction.

When to Use a Residential Lease in Minnesota

  • Renting a house, apartment, condo, or other dwelling as a primary residence.
  • Establishing a fixed-term or month-to-month tenancy.
  • Documenting deposit interest, late-fee limits, and repair obligations.
  • Complying with Minn. Stat. Ch. 504B and any applicable local ordinances.

Key Minnesota Residential Lease Provisions

  • Security Deposit: Minnesota does not impose a statutory cap on the deposit amount, but the deposit must be held in an interest-bearing account. Interest must be paid to the tenant. Minn. Stat. § 504B.178, subd. 2.
  • Deposit Return: The deposit must be returned within three weeks (21 days) after the tenancy ends and the tenant provides a mailing address. If the tenant vacates a condemned building (not tenant-caused), the deadline is five days. § 504B.178, subd. 3.
  • Move-In and Move-Out Inspections: Landlords must offer the tenant the opportunity to participate in both a move-in and a move-out inspection. § 504B.182.
  • Late-Fee Cap: A late fee may not exceed 8% of the overdue rent payment and must be agreed to in writing. Minn. Stat. § 504B.177.
  • Entry Notice: The landlord must give at least 24 hours' notice before entering, make a good-faith effort to provide notice, and enter only between 8:00 a.m. and 8:00 p.m. unless otherwise agreed. Emergencies are excepted. § 504B.211, subd. 2, 4.
  • Habitability and Rent Escrow: The landlord must maintain the premises in habitable condition. § 504B.161. If the landlord fails, the tenant may deposit rent with the court (rent escrow) and seek remedies including repair-and-deduct. §§ 504B.381–504B.425.
  • St. Paul Rent Stabilization: St. Paul has an active rent-stabilization ordinance limiting annual rent increases for covered units.
  • Rent Control Preemption: State law generally prohibits local rent control unless approved by general election. Minn. Stat. § 471.9996.

Frequently Asked Questions

Is there a security deposit limit in Minnesota?

No statutory cap. However, the deposit must be held in an interest-bearing account and interest must be paid to the tenant. Minn. Stat. § 504B.178, subd. 2.

How long does a Minnesota landlord have to return a deposit?

Within three weeks (21 days) after the tenancy ends and the tenant provides a forwarding address. § 504B.178, subd. 3.

What is the late-fee cap in Minnesota?

8% of the overdue rent payment, and it must be agreed to in writing. § 504B.177.

Does Minnesota have rent control?

State law generally prohibits local rent control unless approved by general election (§ 471.9996). St. Paul currently has an active rent-stabilization ordinance.

Can a Minnesota tenant deposit rent with the court?

Yes. If the landlord fails to maintain habitable conditions, the tenant may deposit rent with the court (rent escrow) and seek remedies including rent abatement and repair-and-deduct. §§ 504B.381–504B.425.