New Years in Minnesota usually brings us that first frosty blast of cold air across the region. This year like last we see a frosty blast from the Department of Commerce with new laws for landlords to be aware of. These new laws are aimed at strengthening tenant protections and clarifying landlord responsibilities. Effective January 1, 2025, these changes add to the growing list of regulations passed in recent years that have significantly increased the complexity of being a compliant landlord in Minnesota.
For DIY landlords, these updates are especially important. When I’m pulling comps for new rental properties to market I’ve seen that over half include non-compliant language—whether unintended or not from both mom and pop landlords and other property managers.
To help you stay informed and avoid compliance pitfalls, here’s a breakdown of the most significant changes taking effect in 2025:
1. Tenant Associations
Tenants have a right to form associations aimed at improving housing conditions, amenities, or overall community life. Landlords are prohibited from interfering with these activities in any way. Violating this law can result in penalties of up to $1,000 per occurrence.I see this mostly affecting landlords of larger multifamily buildings. The odds of tenants creating an association at a duplex or fourplex are much less but I think we’ll need to see over time how this new law impacts landlords.
2. Shared Utility Billing Protections
The state has made it increasingly difficult for landlords to spread the cost of utilities between tenants. Better known to landlords as RUBS(Ratio Utility Billing System) is the practice of breaking up a shared utility bill and having your tenants reimburse the landlord for that cost. As of 2025, if your property has only 1 electrical meter, that bill can no longer be divided amongst your tenants. Gas and water bills can still utilize RUBS but for properties with a shared electric meter, that cost must be paid by the landlord.
Additionally, Landlords must now be the named customer on utility accounts for properties with shared meters. Minnesota’s Cold Weather Rule has been extended to cover shared-meter utility billing, protecting tenants from utility shut offs between October 1 and April 30.
Lastly, landlords are required to inform tenants annually about energy assistance programs to ensure transparency and support for low-income households. We’ll be working on creating a handout and list of resources for all of our clients' tenants.
3. Early Lease Renewal Restrictions
Under the new law, landlords are prohibited from requiring tenants to renew a lease earlier than six months before the current lease ends. This rule helps tenants from feeling pressured into early decisions about their housing situation.Why would a landlord ask their tenants to renew 6 months early? This law is going to impact college housing landlords the most. Many of the college housing landlords I’ve met want to start marketing a few weeks into the spring semester while students are still physically together and can check out a new rental at the same time. This is going to be a hard pill for many landlords to swallow out the gate.
4. Application and Screening Processes
Tenant screening practices have new requirements for 2025. If an applicant doesn’t have a social security number but has an ITIN (Individual Taxpayer Identification Number) the landlord must accept that as a valid form of identification. Landlords will encounter ITINS on many individuals who are new to our country. The biggest change is that landlords cannot consider items on background checks that are pending, expunged, confidential or didn’t result in a writ of recovery. This is going to affect items such as an eviction or criminal charges. These changes are to promote fairness and ensure equal opportunity for housing.
5. Move-In Date Delays Due to New Construction
Delays in new construction can no longer leave tenants stranded without recourse. Landlords are required to notify prospective tenants of any delays as soon as possible.And if there are delays, provide solutions such as alternative housing, financial compensation or the option to terminate the lease with a full refund of any payments made.
6. Service and Emotional Support Animals
Landlords must clearly disclose that pet deposits, pet rent, and related fees cannot be charged for service animals or emotional support animals. This update ensures compliance with federal fair housing laws and protects tenants who rely on these animals for their health and well-being.
What This Means for Landlords
These legislative updates reflect Minnesota’s ongoing vocal and legislative commitment to fair and transparent rental practices. For landlords, the rules present more and new hurdles to compliance. Being informed and adjusting your best practices is critical to avoid costly legal issues and fines.
If you’re a landlord feeling overwhelmed by the complexity of new and existing regulations, now may be the time to consider professional property management. With NorthPath Property Management, we help you navigate Minnesota’s ever-changing rental laws, ensuring your properties remain compliant and your tenants and properties well cared for.
