Rental Property Rules in Minneapolis, MN

If you live in Minneapolis or are thinking about moving there, rental property rules are one of those things you probably won't think about until they affect you directly. Minneapolis has 5 specific rules on the books covering different aspects of rental property rules, and some of them might surprise you.

Rent Control

MN Stat 471.9996 preempts local rent control absent voter approval. Minneapolis voters approved a 2021 charter amendment enabling rent rules, but no binding ordinance has been enacted.

Key details: State Law: MN Stat 471.9996 preempts without voter approval. Charter Amendment: Approved 2021. Binding Ordinance: Not yet enacted. Rent Caps: None currently. Retaliation Protection: MN Stat 504B.285.

Because there is no binding city rent cap, there are no direct penalties. Retaliatory rent increases after tenant complaints may violate MN Stat 504B.285 and give the tenant a defense in eviction.

Minneapolis is more permissive than most cities when it comes to rent control. That said, there are still limits.

Security Deposit Rules

Minnesota Statute Section 504B.178 caps rental security deposits and mandates return within 21 days after lease end, with itemized deductions and 1% monthly interest accrual on deposits held over a year.

Key details: Return deadline: 21 days post move-out. Interest rate: 1% simple, annual. State statute: Minn. Stat. §504B.178. Penalty: Double withheld amount.

Failing to return deposit within 21 days, withholding without itemized statement, or unreasonable damage deductions exposes landlords to small claims liability for double the wrongfully withheld amount plus interest.

Just Cause Eviction

Minneapolis requires 'cause' before a new owner can end an affordable-housing tenant's lease during the three-month protection period after a building sale, or else pay three months' rent in relocation assistance.

Key details: Scope: Affordable housing buildings only. Protection window: 3 months after ownership change. Relocation pay: 3 months' contract rent. Cause defined as: Material lease violation. Citywide reach: Not a general just-cause law.

Terminating without cause, or skipping the required sale/rights notices, draws an administrative fine equal to the owed relocation assistance plus $500, on top of possible criminal prosecution or adverse rental-license action under Chapter 244.

Rental Registration

Minneapolis owners must hold a valid rental dwelling license, administrative registration, or short-term rental registration before letting any dwelling unit for occupancy or collecting rent on it.

Key details: Licenses issued by: Director of Regulatory Services. Unlicensed rental: Misdemeanor (Code § 1.30). New rentals: Apply before initial occupancy. Pre-leasing exemption: Allowed before occupancy, not after.

Misdemeanor, punishable under Minneapolis Code § 1.30; license denial, suspension or revocation for noncompliant owners.

Compared to other cities, Minneapolis takes a harder line on rental registration. The enforcement and penalty structure reflects that.

Repairs & Habitability

Minneapolis landlords must maintain habitable rooms at 68F from October through April (65F in the May and September shoulder periods) and meet minimum light, ventilation, and electrical standards under Code of Ordinances Chapter 244, enforced through the rental dwelling license inspection program.

Key details: Winter heat minimum: 68F, Oct 1 to Apr 30. Shoulder-season minimum: 65F, May 1-15 and Sep 15-30. Natural light/ventilation minimum: 8% of floor area, min 8 sq ft. Furnace inspection: Every 2 years if over 10 years old. Enforcement: Regulatory Services rental license inspections.

Violating heating, light, or ventilation standards is a misdemeanor under section 1.30, punishable by the maximum fine or jail term Minnesota law allows; each day of noncompliance is a separate offense, and citations for these sections require no advance notice.

The Bottom Line

Minneapolis's rental property rules rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Minneapolis is broadly strict or permissive.

All of the above reflects Minneapolis's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.