Minnesota rules for property managers

Minnesota's broker definition covers anyone who, for another and for pay, rents or manages real estate or negotiates rentals. Third-party property managers need a broker license or must work as salespersons under a broker.

Custodians, janitors, and employees of the owner or manager of a residential building who lease units in that building; attorneys who follow the trust account rules; court-appointed fiduciaries; banks and similar institutions acting within their powers; public officers.

All trust funds a broker or its licensees receive go into a broker trust account at a Minnesota bank or another approved depository that lets the commissioner examine its records. Under § 504B.178, tenant security deposits are held by the landlord for the tenant and are not treated as fiduciary funds under the license law.

Minnesota does not limit the size of a security deposit. A separate prelease deposit is allowed only under the conditions in § 504B.175.

Return the deposit with interest, or a written statement of specific reasons for keeping any part, within three weeks after the tenancy ends and you receive the tenant's mailing address. If the building is condemned through no fault of the tenant, the deadline is 5 days. You may keep only amounts for unpaid rent or other charges due under the lease and damage beyond ordinary wear and tear. Missing the deadline costs a penalty equal to the amount withheld, and bad faith adds up to $500 in punitive damages.

Deposits earn simple, noncompounded interest of 1% per year from the first day of the month after full payment. The landlord holds the deposit for the tenant, but it is not treated as money held in a fiduciary capacity under the real estate license law. When ownership changes, transfer or return the deposit within 60 days.

A late fee is allowed only if the written lease says when it applies, and it may not exceed 8% of the overdue payment. For tenants with a housing assistance payments contract, the fee may be based only on the tenant's share of rent. Federal subsidized housing rules control if they conflict.

Before taking a fee, disclose in writing the screening company and your rental criteria. Do not take a fee if no unit is available, and do not cash it until earlier applicants are processed. Refund it if you reject the applicant for a reason not disclosed, rent to an earlier applicant, or do not use it for screening. Tell rejected applicants within 14 days which criteria they failed. Since 2025 you may not deny an applicant based on a pending eviction, an expunged or nonpublic case, or an eviction without a writ.

A landlord may not give a notice of rent increase, or a notice to quit or of nonrenewal, that is shorter than the notice period the lease requires the tenant to give. This cannot be waived. For month-to-month tenancies, plan on at least one full rental period.

Cities, counties, and towns may control rents only through an ordinance or charter amendment approved by voters in a general election. St. Paul has a voter-approved rent stabilization ordinance, so check local rules there.

Before filing for nonpayment, deliver a written notice by hand or first-class mail that lists the total due, an itemized breakdown of rent, late fees, and other charges, who can accept payment, and three required statements about legal help, rental assistance, and the 14-day deadline. If the tenant does not pay or move within 14 days, or a longer local period, you may file. Courts dismiss cases filed without a proper notice.

State law does not require a notice before filing a breach of lease case, but the lease must give you the right to evict for that breach. The complaint must name the lease clause, describe the conduct and dates, and identify the clause allowing eviction. Many leases require their own notice, so follow the lease.

Either side may end a tenancy at will by written notice at least as long as the time between rent due dates, or three months, whichever is less. For monthly rent, that is one month.

After the 14-day notice runs out, file the complaint. The court hearing is set 7 to 14 days after the summons issues (5 to 7 days for expedited cases). If you win, the court issues the writ but usually stays it for up to 7 days, except in expedited and default cases. Expunged or pending cases cannot be used to deny later applicants.

If a tenant abandons the unit, take possession of remaining property and store it with care. You may sell or dispose of it 28 days after you learn of or reasonably conclude abandonment. Give at least 14 days' notice of a sale by personal service or first-class and certified mail, and post notice on the premises. Return property within 24 hours of a written demand (48 hours if stored off site) or face penalties.

Make a good faith effort to give at least 24 hours' notice with a time or window of entry, and enter only between 8 a.m. and 8 p.m. unless the tenant agrees otherwise. Emergency entry without notice is allowed for safety or to prevent injury or damage; leave a written notice if you enter while the tenant is away. Tenants cannot waive notice, and violations can cost up to $500 per violation plus rent reduction.

Landlords must keep the premises and common areas fit and in reasonable repair, handle pest extermination, meet health, safety, and rental licensing codes, and supply heat of at least 68°F from October 1 to April 30. These duties cannot be waived. Tenants can use rent escrow and emergency remedy actions to force repairs.

Before the tenancy starts, disclose in writing the name and address of the manager and of the owner or agent for service, and post them on the premises. List all nonoptional fees with rent as the Total Monthly Payment on the first page of the lease and in ads, and say whether utilities are included. At move-in or within 14 days of it, tell tenants they may request an initial inspection, and before move-out tell them they may request a move-out inspection. Also disclose outstanding inspection or condemnation orders, post notice that the Attorney General's tenant handbook is available, and give the federal lead disclosure for pre-1978 housing.

The Minnesota Human Rights Act covers race, color, creed, religion, national origin, sex, gender identity, marital status, status with regard to public assistance, disability, sexual orientation, and familial status. Landlords must also accept an ITIN instead of a Social Security number on applications.

Landlords must give a 14-day written notice with required content before filing a nonpayment eviction. Applies to cases filed on or after this date.

For leases signed on or after this date: entry only 8 a.m. to 8 p.m. with 24 hours' notice, nonoptional fees shown as a Total Monthly Payment, and tenant rights to initial and move-out inspections.

Notice to end a tenancy at will must be at least one rental period or three months, whichever is less. The separate 14-day notice to quit for unpaid rent on a tenancy at will was repealed, for leases entered into or renewed on or after this date.

Limits screening denials based on pending or expunged evictions, applies late fees only to the tenant's share of subsidized rent, requires accepting ITINs, protects tenant organizing, caps rent owed after abandonment, and lets the Attorney General enforce chapter 504B.

Landlords may seek an expedited hearing when a tenant assaults the landlord, staff, or contractors, and may not name a tenant's minor child as an eviction defendant unless the minor is the only renter. Landlords who take rent through a digital payment platform must offer a no-fee alternative when the platform is down.

• NARPM Minnesota Chapter

• Minnesota Department of Human Rights
• Mid-Minnesota Legal Aid