Tenants | Law Outside the Box

Security Deposit Law in MN

On November 16, 2010, In Landlord Tenant Law, By Luke Enno

Almost every week, I receive at least one call from a landlord or tenant regarding how to handle a security deposit.

For the landlord, there is ONE rule that you must remember: You must refund the entire security deposit within 21 DAYS after the tenancy ends OR give the former tenant a sufficient WRITTEN explanation as to why part or all of the security deposit is not being returned.

This is the 21 DAY RULE.

Here are a few recommended tips for the landlord:

1. Make sure to send the letter to the last known address even if it is the address where the tenant just moved out.

2. Send the letter by certified mail and get a return receipt.

3. If you return any or all of the security deposit, it would be preferred if you sent it back in the form of a money order or cashier’s check rather than a check (identity theft).

4. If you are not going to return all of the security deposit, enclose an accounting statement to demonstrate why you are entitled to retain the security deposit.

5. Don’t forget to add the appropriate interest to the security deposit (currently 1% per year).

6. Talk with a knowledgeable landlord-tenant law attorney if you have questions. A lot of tenants know the rules better than their landlords and you as a landlord can incur civil penalties for mishandling this process.

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Charging Late Fees: 2 New Landlord Tenant Laws

On August 9, 2010, In Landlord Tenant Law, By Luke Enno

Charging late fees is customary in most leases. However, as of August 1, 2010, in Minnesota, you should know that there are 2 new laws relating to how and when you can charge late fees.

#1 – For leases starting after January 1, 2011, the landlord cannot charge more than 8% of the monthly rent amount as a late fee UNLESS there is a federal law to the contrary (i.e. HUD or RD housing). For example, if you charge a tenant $500/month for rent, you CANNOT charge that tenant more than $40 in late fees for a given month ($500 x 8% = $40).

#2 – If it is not written into the lease that you can charge late fees, you are prohibited from charging late fees. As a landlord, you need to state in the lease that you have the right to charge late fees if rent is late by a certain number of days and also how much that late fee is.

For more information about these new laws, please go to this link or contact my office.

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Tagged with: landlords • leases • property managers • renters • tenants

Screening Tenants: 5 New Landlord Tenant Laws in 2010

On August 6, 2010, In Landlord Tenant Law, By Luke Enno

Are you a landlord who handles screening potential tenants? If so, you should know that as of August 1, 2010, several new laws were enacted in Minnesota which will affect how you screen potential tenants.

#1 – Landlords MUST give potential renters a written set of criteria that the landlord is using to evaluate that potential renter prior to accepting that potential renter’s application fee.

#2 – Landlords MUST cash one application fee at a time. In other words, landlords are barred from collecting a fees from a bunch of different applicants at once and picking and choosing the applicant they prefer and not refunding the application fees to the other applicants who were turned down.

#3 – Landlords MUST refund a potential renter’s application fee if the landlord declines the application for a reason not stated in the landlord’s application criteria. It is important for the landlord to follow its own application criteria or risk violating the law.

#4 – Landlords MUST provide any and all reasons for rejecting a potential renter’s application within 14 days after rejection and identify the criteria the potential renter failed to meet.

#5 – Landlords MUST give a potential renter a written receipt for the application fee upon request by the potential renter.

In addition to any other remedies, a landlord who violates any of these laws is liable to the potential renter for the amount of the screening fee plus a civil penalty of up to $100, civil court filing costs, and reasonable attorney fees incurred to enforce this remedy.

For the potential renter that lies on the application, such potential renter is liable to the landlord for damages, plus a civil penalty of up to $500, civil court filing costs, and reasonable attorney fees.

For more information, refer to the statute or contact my office.

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Tagged with: landlord tenant law • landlords • leases • property managers • renters • tenants

6 New Landlord Tenant Laws You Should Know

On August 5, 2010, In Landlord Tenant Law, By Luke Enno

Whether you are a landlord or a renter, Minnesota enacted several laws starting August 1, 2010. Here is a sampling of important laws that are now in effect:

#1 – If you pay your rent in cash, your landlord MUST provide you a receipt. If the landlord fails to provide you with a receipt, the landlord is violating the law.

#2 – If you pay rent by money order, you can use its stub or a copy of the money order as proof of payment.

#3 – Starting August 1, 2011 for new leases and starting August 1, 2012 for renewed leases, if the landlord’s lease allows the landlord to get attorney fees for winning in court, then if you win over the landlord in court, you are allowed to get your attorney fees recovered. This is true even if the lease does not provide a way for you to recover attorney fees.

#4 – Landlords who do not divide utilities fairly among tenants MUST refund each tenant whichever is more: (1) $500 or (2) triple the damages.

#5 – If a landlord refuses to return your security deposit in bad faith, you can now receive up to $500 in addition to double the security deposit back.

#6 – Landlords must keep your abandoned property for 28 days. If the landlord throws out your property before 28 days are up, the landlord MUST pay you whichever is more: (1) $1000 or (2) triple the damages.

For more information about these new laws, please go to this link or contact my office.

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Tagged with: landlords • leases • property managers • renters • tenants

New Landlord-Tenant Laws You Need to Know

On August 4, 2010, In Landlord Tenant Law, By Luke Enno

In Minnesota, a series of new laws were recently enacted on August 1, 2010 and they WILL affect all Minnesotans who are either renters or else who rent (such as landlords and property managers). These new laws involve a number of very important financial and other considerations that could have a significant impact on both renters and landlords.

The Minnesota legislature focused on several areas of the law including:

1 – The rental screening process

2 – Rental homes in foreclosure

3 – Capping late fees

4 – Payment of utilities

5 – Penalties for bad faith failure to return a security deposit

Harsh fines and penalties are being applied to landlords for failure to follow these new laws.

Over the next few days, I will be highlighting key laws and how they may impact you. If you have a colleague or friend that rents, I would encourage you to have them read my blog posts. For more information on these new laws and what they say, please go directly to this link.

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Tagged with: landlord tenant law • leases • property managers • renters • tenants

Law Outside the Box

Small business and estate planning legal information for the rest of us

Security Deposit Law in MN

Charging Late Fees: 2 New Landlord Tenant Laws

Screening Tenants: 5 New Landlord Tenant Laws in 2010

6 New Landlord Tenant Laws You Should Know

New Landlord-Tenant Laws You Need to Know

Legal Categories

About Luke Enno

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Law Outside the Box

Small business and estate planning legal information for the rest of us

Security Deposit Law in MN

Charging Late Fees: 2 New Landlord Tenant Laws

Screening Tenants: 5 New Landlord Tenant Laws in 2010

6 New Landlord Tenant Laws You Should Know

New Landlord-Tenant Laws You Need to Know

Legal Categories

About Luke Enno

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Recent Comments