Minnesota

Buying a rental property in Minnesota: tenant rules to know

Minnesota law sets no cap in ch. 504B, but St. Paul limits rent hikes to 3%. Deposits come back in 3 weeks; a nonpayment eviction needs 14 days' notice.

In short

Minnesota’s landlord-tenant statute, chapter 504B, sets no cap on rent increases, but St. Paul limits them to 3% in 12 months, with exceptions (City of Saint Paul). Statewide, a landlord must return a deposit or explain deductions within three weeks (§ 504B.178), and must give 14 days’ written notice before filing a nonpayment eviction (§ 504B.321). Minneapolis requires 30 days for that notice.

Is there rent control in Minnesota?

The text of chapter 504B that we read, in the 2025 Minnesota Statutes, contains no limit on how much a landlord may raise rent. Cities have set their own rules.

St. Paul has a rent stabilization ordinance, approved by voters in November 2021 and amended in September 2022 and May 2025. According to the city:

Type of increaseLimit
Standard increase, no city approval3% in a 12-month period
Self-certification exception3% to 8%, evaluated annually
Just-cause vacancy exceptionConsumer Price Index (CPI) plus 8%
Staff determination (reasonable return on investment)No limit with appropriate justification

Source: City of Saint Paul, “Rent Stabilization,” last edited May 11, 2026.

The amended ordinance exempts newly constructed rental properties. If you are buying in St. Paul, ask what the current rent is, whether the unit is covered, and whether the seller has an approved exception.

Minneapolis. The City’s renter-rights page lists protections on screening, deposits, evictions, relocation, repairs and rent-setting software. It does not describe a cap on rent increases. Check the current ordinances with the City before you buy.

Security deposits

Chapter 504B sets these rules (§ 504B.178):

  • The deposit earns simple interest of 1% a year, held for the tenant.
  • Within three weeks after the tenancy ends, and after the tenant gives a mailing address, the landlord must return the deposit with interest or send a written statement of the reasons for any deduction.
  • The landlord may deduct only what is reasonably necessary to cover unpaid rent or other money owed, or to restore the home to its starting condition, apart from normal wear and tear. The landlord has the burden of proving the reason.
  • A landlord who misses the deadline owes the tenant the amount withheld again as a penalty. Bad-faith retention can add punitive damages of up to $500 per deposit.

Minneapolis goes further: a deposit cannot exceed one month’s rent. If the owner asks for more than one month’s rent up front, the deposit cannot exceed 50% of one month’s rent, and the tenant may pay it over three months (City of Minneapolis).

Example only: on $1,500 monthly rent, a Minneapolis deposit is capped at $1,500, and 1% interest earns $15 a year. Under § 504B.177, a late fee must be agreed in writing and cannot exceed 8% of the overdue rent, which is $120.

Eviction notice periods and process

Nonpayment of rent. Before filing, the landlord must deliver a written notice, personally or by first-class mail, that states the total due and an accounting of rent, late fees and other charges. It must tell the tenant of the right to legal help. If the tenant has not paid or moved out within 14 days, the landlord can file (§ 504B.321). A longer local notice period applies where a city sets one. Minneapolis requires the notice at least 30 days before the landlord starts the eviction process.

After filing. The hearing is set 7 to 14 days after the court issues the summons. In a nonpayment case, the tenant can usually keep the home by paying the rent owed, interest, costs and a small attorney fee before possession is delivered (§ 504B.291). If the court rules for the landlord, it generally stays the writ for up to 7 days, and the officer then gives 24 hours to leave (§§ 504B.345, 504B.365). Expedited cases involving serious danger or property damage have shorter timelines; a 2026 law, effective August 1, 2026, added assault on the landlord or the landlord’s staff to the grounds.

Month-to-month tenants. A landlord ends a tenancy at will with written notice at least as long as the rent interval or three months, whichever is less (§ 504B.135). Retaliation for a good-faith complaint is a defense, and if the notice came within 90 days of the tenant’s complaint, the landlord must prove it was not retaliatory (§ 504B.285).

Low-income renters in Minneapolis have a right to a lawyer in eviction cases, according to the City.

Buying a home with a tenant in place

  • The deposit passes to you. When a landlord sells, the seller has 60 days to transfer the deposit to the buyer, or to return it to the tenant (§ 504B.178, subd. 5). The buyer takes on the landlord’s rights and duties for the deposit; the tenant has 20 days after notice to dispute the stated amount (subd. 6). Ask for the lease and deposit records before closing.
  • Landlord disclosure follows the property. The duty to name the manager and the owner or agent for notices extends to a successor landlord (§ 504B.181).
  • Showing the unit. A landlord may enter to show a unit to a prospective buyer with at least 24 hours’ good-faith notice, between 8 a.m. and 8 p.m. (§ 504B.211).
  • Foreclosed homes. A buyer after a foreclosure must give a tenant with a bona fide lease at least 90 days’ written notice to vacate, and let a lease run to its end if it extends more than 90 days past the redemption period, unless the buyer will live there (§ 504B.285, subd. 1a). See our guide to foreclosure in Minnesota.
  • Minneapolis rental licenses. Every rental property in Minneapolis must have a rental license (City of Minneapolis). Confirm the license before you buy.
  • Minneapolis affordable buildings. An owner selling an affordable rental building must notify tenants and the City 60 days before putting it up for sale. The new owner must send a notice of new ownership within 30 days. For three months after the transfer, tenants may get relocation help if the new owner ends a lease without cause, raises rent or rescreens them. The City defines relocation help as three months’ rent.

For the rest of the purchase, read buying a home in Minneapolis and the home buying steps.

Frequently asked questions

Does Minnesota have rent control?

Chapter 504B does not cap rent increases. St. Paul’s ordinance limits increases to 3% in 12 months, with exceptions. The City of Minneapolis page we read does not describe a cap.

How long does a landlord have to return a security deposit in Minnesota?

Three weeks after the tenancy ends and after the tenant gives a mailing address, the landlord must return the deposit with 1% simple interest or explain deductions in writing (§ 504B.178).

How much notice is needed to evict a tenant for not paying rent?

State law requires written notice and 14 days to pay or leave before the landlord can file (§ 504B.321). Minneapolis requires at least 30 days.

What happens to a tenant’s lease when the house is sold?

The statute we read transfers the deposit duties to the buyer and extends the landlord disclosure duty to a successor. For the lease itself, read it and ask the seller for tenant records before closing; a lawyer can advise on your situation.

Do I need a license to rent out a home in Minneapolis?

Yes. The City says every rental property in Minneapolis must have a license.

More Minnesota guides

Sources

Minnesota · All states · Federal guides