The Mn Standard Lease Agreement Explained

An Introduction to MN Lease Agreements

A lease agreement serves the same basic purpose as a purchase contract for goods or services: it lays out the terms of the arrangement in a manner that governs the rights and responsibilities of the parties to the agreement. In the case of a leasing contract, the tenant pays rent for the exclusive use of the property. The MN Standard Lease Agreement includes a variety of provisions intended to address many of the possible issues that can arise between landlords (also called lessors) and tenants (or lessees).
Rent is paid for a much broader range of contracts than just those involving housing. For example, lease agreements are also used to lay out the terms under which someone can lease an automobile or a copy machine. The parties involved in these types of arrangements are entering into a contract not unlike that of a landlord/tenant relationship. However , real estate transactions are different from the lease of many other types of assets.
The lease agreement for residential property is used to govern the agreement between owners and renters of land in Minnesota. The lease agreement authorizes the tenant to use the property for a specific time period. Its importance lies in the various responsibilities of both the landlord and the tenant. These rights and duties can be broadly divided:
Whether you’re renting a room, an apartment, a house, a condo or even an office, lease agreements are designed to maintain order in every transaction. The MN Standard Lease Agreement serves to protect both the tenant and the landlord or property owner.

The Essentials of a MN Standard Lease

The Minnesota standard lease agreement typically includes the following components:
Duration of Lease (Lease Term) – The lease identifies the period of tenancy, often stating a "lease year" (12 month) or a "lease period" (for a term as short as 30 days). The lease month means one-thirteenth (1/13) of the annual rental amount. The lease year in an "X-year biennial lease" means one-third (1/3) of the annual rental amount.
Rent Terms (Rent Amount and Due Date) – The lease states the amount of rent due, when it is to be paid, and any terms regarding grace period or late payment.
Security Deposit – This section covers the amount of money collected by the landlord to compensate for damage caused by tenant, if any. It includes information regarding return of deposit after lease ends.
Rights and Responsibilities – This section lays out the rights and responsibilities of both the landlord and the tenant, and should also address enforcement measures, and recourse if lease is broken.

Lease Requirements in Minnesota

In the state of Minnesota, lease agreements between landlords and tenants are governed by the Minnesota Statutes Annotated 504B, with overview information available here for statutes 504B.001 to 504B.471 and full text of those statutes found here — Minnesota Statute 504B.001 et. seq.
Specifically, a lease agreement must be in writing when the tenancy is for more than 12 months, but is not required to be notarized. An optional form, known as the MN Standard Lease Agreement, is available here.
The MN Standard Lease Agreement form is particularly useful because it contains nearly all of the specific verbally disclosed clauses that the landlord must give to the tenant by law. These clauses deal with the following:

Disclosure of special rights
Interests in real property
Warranties of habitability
Flood plain
Lead-based paint
Utilities
Rental property registrations
Fire alarms
Ramps for persons with disabilities
Energy-altering devices
Smoke alarms
Sprinkler systems
Proposed ordinances or amendments
Residential rental code and licensing provisions

All of these provisions are mandatory under MN law and both landlords and tenants must comply with all of the requirements.

Typical Clauses Found In Minnesota Leases

In a Minnesota standard lease agreement, the property owner will typically reserve the right to enter the premises with adequate notice and for a reasonable purpose. The lease generally must specify a notice period of 48 hours for entering, except in emergencies, and restricts entry to weekdays between 8:00 a.m. and noon, and 1:00 p.m. and 6:00 p.m. Typically a landlord provisions a right to change the locks upon non-payment of rent, and that locks must be changed by a licensed locksmith. A property owner may be responsible for maintenance and repair of the premises during the tenancy, but a tenant may also be expressly liable for repairs for failing to report a problem in a timely manner. The lease may provide for a tenant to have a right of first refusal to purchase the premises within 90 days of notice of sale. A standard lease may permit a landlord to evict tenants whose cumulative rent exceeds three months or is more than $1,200 per year.
Many common lease provisions are regulated by Minnesota Statutes § 504B, as well as the federal Fair Housing Act. Unless a lease provision is modified, it is void in cases where it tends to defeat the protections of these laws. A typical lease will provide that any provision that appears to violate a landlord or tenant’s rights is modified so that it conforms with the law. For example, a common misconception is that a landlord can’t have a smoking policy, but Minnesota law permits a landlord to limit smoking on the premises. The same goes for pets. A typical lease may impose a modest fee for having a pet, but a landlord cannot prohibit a service animal.
In Minnesota, the law is complicated further by statewide executive orders in response to the Corona-virus pandemic. Tenants are encouraged to consult an attorney if they feel their rights are being violated.

Advice For Renters: Managing Your Lease

When you are thinking about entering a rental agreement, it is never too early to start negotiating for terms with your prospective landlord or the property manager. Negotiating may help you get what you want out of your lease, and landlords may be reasonable more often than you realize in responding positively to negotiation requests. It never hurts to try, and negotiation is a good way to build rapport with a landlord.
The MN Standard Lease Agreement contains a lot of boilerplate language and provisions. You may not need all of these provisions in your rental agreement, and some provisions may even conflict with your needs as a tenant. Additionally, if you are moving to a new location, you may want to negotiate terms concerning things like: Answering these questions can help you identify areas in your lease that you may want to discuss with a landlord . You should also take time to review the proposal requirements as this will help you manage your expectations and conversations with your landlord. These requirements include that these proposed changes to the Standard Lease be in writing and any change that you suggest must be signed by you and your landlord for them to be effective.
When it comes to negotiating your lease, you will be able to approach your landlord in one of two ways: However, the way in which you choose to engage your landlord can significantly impact how the lease negotiation process proceeds. For example, ask questions, make every effort possible to be respectful, polite, and maintain a positive attitude. You may want to consider discussing a mutual agreement with your landlord to just use the MN Standard Lease Agreement and not change anything, because negotiating can hit roadblocks.

Landlord Tips for Creating a Thorough Lease

It is obviously important for landlords to have a lease agreement that covers all possible issues that may arise during the landlord-tenant relationship. Too often landlords use "off-the-shelf" lease agreements or other forms that do not adequately address issues in the tenant-landlord relationship. Such lease agreements are often the result of attempts by one who is unfamiliar with the specifics of Minnesota’s leasing laws and requirements. Having a thorough agreement that is tailored to your property and the tenancy will help further your interests as a landlord and minimize disputes.
Many of the "off-the-shelf" lease agreements refer to state law in place of spelling out detailed terms in the lease itself. For example, many of these lease agreement refer to the security deposit laws in Minnesota and then provide a blank for the parties to put in the amount of the security deposit. While this does provide a minimum level of detail, it does not inform the tenant of their rights and the potential costs and penalties for overstepping them. Many of the penalties and recovery amounts a landlord may recover relate to forfeitures and damages that can be recovered only if they are specifically provided for in the lease agreement. If the lease agreement requires a $250 forfeiture for breach of the agreement, but does not provide for it, then the forfeiture is not recoverable.
Clarity and cohesiveness are also very important, but often overlooked aspects of a lease agreement. The purpose of having a lease agreement is to establish the terms and conditions of the tenancy. Having a lease agreement that has elaborate and inconsistent terms surrounding what happens when rent is late can make it difficult, if not impossible, to enforce.
In addition to spelling out each party’s rights and obligations, the lease agreement should also discuss things that need to be done prior to the move-in date, such as changing utilities into the tenant’s name, and the consequences if a tenant fails to pay for utility services as required by the lease agreement. Having major points that the tenant must address before they can move in can avoid disputes later.
Having a lease agreement that covers all of the important issues in the landlord-tenant relationship will save time and money from not having to litigate over unclear issues and misunderstandings. It is therefore important to have an attorney familiar in drafting Minnesota lease agreements to help ensure that all of the issues are covered.

Minnesota Lease Dispute Solutions

Conflicts will inevitably arise during the course of a residential lease. In Minnesota, the Residential Landlord and Tenant Act governs most residential rental units. Understanding the process for mediation, legal remedies and state resources available will be helpful in resolving these disputes early on.
Mediation
In certain situations, landlords and tenants may be able to resolve a dispute with the help of the Minnesota Department of Human Rights. The Housing Discrimination Unit of the Department helps thousands of Minnesotans annually before a lawsuit is ever filed. The unit is able to help with allegations of discrimination based on disability, family status or race, color and national origin. The Department orders modification and repairs relating to lack of heat, leaks and mold-related problems in occupied units. If your situation does not involve discrimination as listed above, you also have the option of requesting conciliation through the Department.
Legal Remedies
For issues that cannot be resolved by mediation, you may have to go to court to demand your rights under the Landlord Tenant Act. These are issues that you should seek the help of an attorney to determine the best course of action.

MN Lease Law Recent Changes

In recent years, several legislative changes have been made to Minnesota’s laws governing the use of lease agreements. In 2014 the Minnesota Legislature enacted a new law that regulates security deposit interest. The law requires all residential landlords to pay one percent interest on all security deposits held for more than 24 months. In June 2016, the Legislature enacted a new law that protects tenants from retaliatory actions by a landlord. For example, if a tenant exercises a legal right under the Minnesota Statutes or Local Ordinance, the tenant is entitled to protection from a retaliatory eviction and other actions by the landlord.
The State Legislature has also passed a number of laws making it easier for tenants to sue landlords in certain circumstances. The Residential Tenant Remedies Act allows a tenant to seek injunctive relief and damages when a residential landlord fails to make necessary repairs, including exterminating rodent and insect infestations . The Minnesota Public Housing Authority Policy Board ("PHAPB") issued a very lengthy policy change effective October 1, 2014, dictating conditions under which local housing authorities are permitted to participate in determining criminal background histories of prospective tenants. The policy change is applicable to connected individuals so that parents may be responsible for the actions of their children. Also effective October 1, 2014, the "Restore the Vote" Act allows felons who have completed their prison and parole sentence to vote in future elections. Under recent amendments to the Minnesota Human Rights Act, a tenant in a rental housing unit of four or more units may not be evicted, denied rental, or refused continued rental on the basis of criminal history when the conviction is more than three years old, or the conviction is for a misdemeanor. In 2017, the Minnesota Legislature expanded the protection to apply to convictions that have been completely discharged.