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HOME Line wrote How to Be the Smartest Renter on Your Block to help renters find, get and keep rental housing. This book is based on the real-life concerns we hear from thousands of callers to our tenant hotline. It gives the best ways to handle and avoid the most common rental problems.A great resource for attorneys who occasionally hear questions about housing and tenant/landlord law.Cost: Paperback $20 (plus taxes and shipping)Also available as a digital e-book for $9.99

If you enjoyed today’s speech, you may find HOME Line’s book on Minnesota tenant/landlord law useful.

Tenant/Landlord Law Resource Book

200+ pages outlining practical advice:

•Shopping for an Apartment•Applying for an Apartment•Housing Discrimination•Understanding Leases•Neighbors & Roommates•Privacy Violations•Repairs•Retaliation•Ending a Lease•Rent Increases•Evictions•Lockouts & Utility Shutoffs•Security Deposits•Abandoned Property•Landlord Foreclosures•Manufactured (Mobile) Homes•Subsidized Housing•Caretakers & Other Employees of the Landlord•Renters Credit (CRP)•Tenant Organizing•Form letters & other resources

www.homelinemn.org/book

Application

• Vacancy Rate

• Screening Purpose: – Criminal– Rental– Credit History

Application FeesExtra Rules after 8/1/2010

• Written Criteria

• Return Fee if denied for non-criteria reason

• Cash one fee at a time

• $500 Penalty for lying on application

Discrimination Law #1

• Protected classes:– Race, color, creed, gender, marital status, family status,

sexual orientation, religion, disability, national origin, public assistance status.

• Not Protected– Age (except St. Paul)– Packers v. Vikings– Personal Animosity

Discrimination Law #2-Children

• Cannot directly or indirectly discriminate against children as opposed to adults

• New child in family– Birth, adoption, written transfer from guardian

– 6 month notice directed to > 1 yr. anniversary• MN. Stat. § 504B.315

Covenants of Habitability

• Fit for use intended

• Reasonable repair

• Must meet health and safety codes– Includes weatherization

• MN Stat. § 504B.161

• Tenant must be fairly compensated, in writing, for any maintenance (lawn, snow)

Bedbugs

• Who pays for it?

• Calls from 41 different counties

• To make tenant pay, must be able to prove “willful, malicious or irresponsible” conduct of tenant

• Practical advice

• MN Stat. § 504B.161

Late FeesRule until 1/1/2011

• Must be in lease– Daily fee probably unenforceable

• Must:– Not be a penalty

– Be reasonable estimate of average cost of dealing with lateness

– Cost not be certain on day one

• Gorco Construction Company v. Stein, 99 N.W.2d 69 (Minn. 1959)

Late FeesRule after 1/1/2011

• Must be in lease• Capped at 8% per rental period• Minn § 504B.177• Federal Rule--if exists--pre-empts State Law• “Reasonable” probably defaults to State Law

Attorney Fees

• Many leases state that a tenant must pay the landlords attorney fees if the landlord takes legal action

• New law makes this lease term “bi-lateral” automatically. If the tenant wins, the landlord owes their attorney fees

• Minn. Stat. § 504B.172

Foreclosure

• Lender gives notice (about 4-6 weeks) of Sheriff’s Sale– Lender likely “wins” the Sheriff Sale Auction

• For next 6 months, Owner/Landlord can “redeem” (pay off) the entire bid = mortgage plus costs– During 6 months, Landlord remains Landlord– If redeemed, Landlord remains Landlord going forward

Foreclosure II

• Bona fide tenant (BFT) protected past redemption period– Tenants are entitled to 90 day notice to vacate– A lease running beyond the redemption period is still in

force. • BFT gets minimum 90 day notice after redemption period• BFT may live out lease past the 90 days unless owner will

occupy unit• Penalty in Minn. Stat. § 504B.178 for riding out deposit,

does not apply in month 6 of redemption period.

EVICTIONS

• History of “self-help”

• Purpose of an eviction– Execution of Writ of Recovery of Premises

Order to Vacate (MN Stat. § 504B.365)– Ultimate goal of any eviction -- possession, not

$$$– Winner gets the apartment

Reasons for Evictions

• Non-payment of Rent

• Holding Over

• Drugs/Guns/Prostitution/Contraband

• Other Breaches (Lease Violations)– Must be “Material Breach”– Lease allows eviction for the breach

(re-entry clause) Bauer v. Knoble

General Eviction Defenses

• Service of Process– At least 7 day notice required

• Substitute service• “Nail & Mail”• Anybody but Plaintiff can serve• Governed by MN Stat. § 504B.331

• Disclosure of Owner/Agent– Name and street address required– Governed by MN Stat. § 504B.181

• Winter/Pregnancy/Children: Not Defenses

Defense to Non-Payment Evictions

• Redemption (MN Stat. § 504B.291)• Partial-payment (MN Stat. § 504B.291)• “I paid it.”

– Eff. 8/1/10, landlord must give receipt for cash and money order receipts are presumptive proof of payment

• Fritz defense• Improper late fees• “I didn’t owe it.”

Defenses to Holding Over

• Bad Notice– “Short” notice under the lease– Not “month and a day” (MN Stat. § 504B.135)– Not written (MN Stat. § 504B.135)

• Illegal Discrimination• Retaliation or MN Stat. § 504B.205• Waiver by Acceptance of Rent (Pappas v.

Stark)

Defenses to Breach & Drugs etc.

• “I didn’t do it.”

• No re-entry clause in lease

• Lease doesn’t prohibit

• Not “material”

• Guests not in tenant’s control

• Waiver by acceptance of rent (Kenny v. Si Sue Lun)

Security Deposits

• Landlord has 3 weeks from:– Termination of the tenancy: and– Receipt of tenant’s forwarding address

• Within 3 weeks, Landlord must send:– Either the full deposit plus interest, or– A security deposit disposition letter– Postmark sufficient

Deductions from Deposits

• Landlord can only deduct for physical damages beyond “ordinary wear and tear”– Landlord does not have to paint or

change carpets between tenants

• If debt still owed by tenant• Security Deposits covered in MN Stat.

§ 504B.178. Any contrary lease terms unenforceable.

If Landlord doesn’t comply with 21-day ruleTenant can sue for:

• Full amount of withheld deposit + interest

• An amount equal to withheld deposit + interest (“shall”)

• Punitive damages up to $500 (begins 8/1/2010) (“may”)

Sample Deposit Problem

• Withheld deposit $500

• + Interest (1 Year) 5

• Multiplied by 2 1010

• +500 Punitive 500

• Total $1,510

Abandoned Property• No Eviction

– Landlord must store property for 60 days (28 days after 8/1/2010), on or off premises

– Tenant can recover property by giving landlord 24-hour written demand (48 hours if stored off site)

– Covered by MN Stat. § 504B.271

• Following Eviction– Landlord must do inventory of property pursuant to MN Stat. 504B.365– Landlord must store property same as if by no eviction or store in

bonded warehouse (sheriff removes)

• After 60 days (28 days after 8/1/2010), landlord can dispose of property– If warehouse used, landlord & warehouse have a lien for storage costs

HOME Line wrote How to Be the Smartest Renter on Your Block to help renters find, get and keep rental housing. This book is based on the real-life concerns we hear from thousands of callers to our tenant hotline. It gives the best ways to handle and avoid the most common rental problems.A great resource for attorneys who occasionally hear questions about housing and tenant/landlord law.Cost: Paperback $20 (plus taxes and shipping)Also available as a digital e-book for $9.99

If you enjoyed today’s speech, you may find HOME Line’s book on Minnesota tenant/landlord law useful.

Tenant/Landlord Law Resource Book

200+ pages outlining practical advice:

•Shopping for an Apartment•Applying for an Apartment•Housing Discrimination•Understanding Leases•Neighbors & Roommates•Privacy Violations•Repairs•Retaliation•Ending a Lease•Rent Increases•Evictions•Lockouts & Utility Shutoffs•Security Deposits•Abandoned Property•Landlord Foreclosures•Manufactured (Mobile) Homes•Subsidized Housing•Caretakers & Other Employees of the Landlord•Renters Credit (CRP)•Tenant Organizing•Form letters & other resources

www.homelinemn.org/book