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  • Recent Revisions to Landlord-Tenant Laws | By: Thomas Fafinski

Virtus Law PLLC
(763) 432-2169

Late Fees Limited to 8%.
Effective for all leases entered into or renewed after January 1, 2011, the late fees for failing to pay rent on time will be limited to 8% of the overdue rent payment.  There is currently no limitation regarding the manner in which the late fee charges must be charged; therefore, for example, a management company or landlord may continue to charge a lump sum late fee after a specified number of days or charge a per diem late fee so long as the total fees charged do not exceed 8% of the overdue rent payment.

Increased Penalty for Bad Faith Retention of Security Deposit.
Effective August 1, 2010, the penalty amount for the bad faith retention of a security deposit has increased from $200 to a maximum of $500.

Property Abandoned by the Tenant.
Effective August 1, 2010, any personal property abandoned by the tenant must be held by the management company or landlord for 28 days.  The previous statutory requirement was that the management company or landlord hold the property for 60 days.

Attorney’s Fees.
Effective for all residential leases entered into on or after August 1, 2011, and for leases renewed on or after August 1, 2010, those residential leases that contain a provision permitting the management company or landlord to collect attorney’s fees from the tenant will be construed to also provide the tenant the right to collect attorney’s fees if successful in a legal action.  The tenant’s ability to collect attorney’s fees will be limited to the same type of action, the same circumstances, and the same extent that the landlord would be allowed to collect from the tenant under the lease.

Receipt for Cash Payments.
Effective August 1, 2010, the landlord or management company is required to immediately provide a written receipt for rent or other payment paid in cash, provided the payment is made in person.  If the cash payment is not made in person, the landlord or management company is required to provide a written receipt for cash payments within three business days of the payment.

Federal Foreclosure Notice to Tenant Requirement.
Under federal law, tenants in foreclosed properties must be provided at least 90 days notice to vacate after the end of the redemption period, rather than the 2 months required under state law.  Effective August 1, 2010, Minnesota state law will conform with the federal law until December 31, 2012.