Minnesota Rent Increase Laws

Is there a rent increase limit in Minnesota? 

First, here’s a recap of Minnesota rent control laws.

Statewide caps: Many states, including Oregon (Or. Rev. Stat. § 90.323), cap rent increase amounts. But Minnesota doesn’t. As a result, landlords can raise rent by any reasonable amount when a lease is renewed. However, property owners can’t raise rent in manufactured home parks more than twice in 12 months (Minn. Stat. § 327C.06).

When thinking about your price adjustment, always consider the market rate to find a realistic average based on the following:

• Property size
• Features
• Local demand

Using your market rate helps you stay competitive, keep tenants happy, and reduce turnover.

Local rent control ordinances: Minnesota allows local governments to adopt their own rent stabilization laws if voters approve them. Currently, here’s what these ordinances look like at the city and county level:

• Saint Paul caps rent increases at 3% per year (Saint Paul, Minn., Leg. Code. § 193A).
• In Minneapolis, voters approved an amendment allowing the city to enact rent control (Minneapolis, Minn., City Charter art. IV § 4.1(g)). However, the jurisdiction doesn’t have a law in place.

Local laws evolve, so check your area’s specific rules to stay compliant.

Exceptions: Minnesota law doesn’t list any exceptions. However, federal housing programs still apply across the state.

Rent Increase Notice Periods

Remember, you can only raise rent after a lease ends when you’re discussing the terms of a renewal. In these situations, Minnesota law requires landlords to notify tenants in advance for certain types of lease agreements.

Month-to-month: Specifically, state law mandates a notice period of 3 months or 1 rent interval, whichever is less, for month-to-month agreements. Provide a written rent increase letter within this timeline for tenancy-at-will agreements (Minn. Stat. § 504B.135).

Room rental agreements: Even if you’re only renting out a single room, you must follow the state’s notice procedure based on your lease length. If you have a month-to-month room rental agreement, give the lesser of 3 months or 1 rental term’s notice in writing (Minn. Stat. § 504B.135).

Fixed-term: On the other hand, you don’t have to notify tenants in advance if you use a fixed-term lease. However, we recommend it. Follow the state’s notice protocols for month-to-month leases to maintain consistent workflow (Minn. Stat. § 504B.135).

How to Deliver a Rent Increase Notice in Minnesota

While Minnesota rent increase laws require landlords to notify tenants in writing, they don’t specify any particular delivery method. As a best practice, use the following:

• Hand-delivery
• Certified Mail
• Leaving the notice at the tenant’s residence

Pro Tip: If you want to send official notices electronically via email or property management software, outline the process in your lease and have tenants agree in writing.

In Minnesota, the notice period starts immediately if you drop off, hand deliver, or send the letter electronically. However, wait 3 days if you use Certified Mail.

Understanding Illegal Rent Increase and Retaliation

State law strictly prohibits landlords from penalizing tenants for complaining about housing violations. You can’t increase a tenant’s rent within 90 days of a tenant filing an official complaint in good faith (Minn. Stat. § 504B.441). If the lease comes up for renewal within the 90-day window, consider consulting a trusted legal professional to avoid retaliation-related claims.

Pro Tip: In addition to Minnesota rent increase laws, make sure you follow the Fair Housing Act (FHA). Avoid offering unequal rental terms or discriminating against tenants based on the following:

• Race
• Color
• National origin
• Religion
• Sex
• Familial status
• Disability (Fair Housing Act)

Lastly, never raise rent in the middle of an active tenancy unless your lease permits it. Otherwise, you breach the contract, and courts may impose legal penalties.

How to Write a Minnesota-Compliant Rent Increase Letter

Always cover the following items in your Minnesota rent increase letter:

• Full property address (including unit number, if applicable)
• Tenant names
• Exact dollar amount of the increase
• New total rent amount
• Effective date (considering the state’s legal notice period)
• Instructions for tenants to accept or opt out (by terminating the lease)

Simplify your workflow and avoid he-said-she-said disputes by using a consistent template. TurboTenant’s standardized PDF makes notifying tenants fast and easy. Download our Minnesota rent increase letter template to save time.

Managing the Rent Increase Process with Tenants

Once you send your letter, follow these quick tips based on your tenant’s reply:

• Accept: If your tenant agrees to pay your proposed price, draft the new lease agreement and have your tenant sign it. State law doesn’t mandate grace periods, so start charging your new rate on the effective date.
• Move out: By rejecting your rate adjustment, tenants terminate the agreement when the lease ends. Start looking for your new tenant to avoid a vacancy.
• Negotiate: Some tenants may ask to discuss your proposal. Consider offering a phased rent adjustment, a longer lease term, or covering a portion of the monthly utilities.

Use our guide on Minnesota rent increase laws to turn tense renewals into positive tenant experiences.