Minnesota Rent Increases and Pass-Through Costs Explained

For renters across Minnesota, unexpected rent increases can create concern and confusion—especially if you’re told it’s due to new costs faced by your landlord. A common question involves when, and if, landlords are allowed to raise rent to cover certain expenses, sometimes called “pass-through costs.” Knowing your rights can help you respond calmly and confidently.

Understanding Pass-Through Costs in Minnesota Rentals

In rental housing, pass-through costs are expenses a landlord may try to transfer to tenants—like property taxes, repairs, or utility increases—by raising your rent. Minnesota does not have statewide rent control, but rent increases are still governed by specific rules and laws.

• No Statewide Rent Control: The State of Minnesota does not set caps or limits on rent increases for most private rentals.
• Local Ordinances May Apply: Some Minnesota cities, including St. Paul, have local rent stabilization rules. Be sure to check your city’s policies. For example, St. Paul’s Rent Stabilization Ordinance limits annual rent increases and sets conditions for justifying higher increases.
• Adequate Notice is Required: Regardless of the reason, landlords must give at least one rental period plus one day written notice before raising your rent in most situations, unless your lease provides longer notice.

When Can Landlords Raise Rent for Pass-Through Costs?

Minnesota law allows landlords freedom to increase rent when a lease ends or as specified in your rental agreement. However, if a landlord says the increase is due to a specific new cost—such as property tax hikes, large repairs, or new city fees—they must still follow notice rules and any applicable local laws.

• In cities with rent stabilization (like St. Paul), landlords may need to apply for an exception if pass-through costs push an increase above the allowed limit. This typically involves filing a petition with the city’s rent stabilization office.
• For cities without rent control, landlords are not legally required to justify rent increases due to pass-through costs, but they must provide proper written notice as described below.

Notice Requirements for Rent Increases

Under the Minnesota Statutes § 504B.141, landlords must provide reasonable written notice of any rent increase. Typically, this means:

• Month-to-month lease: At least one rental period plus one day written notice
• Fixed-term lease: Landlords may not increase rent during the lease unless the lease itself allows for increases

A notice of rent increase can be given in person or by mail. It must include:

• The new rent amount
• The date the increase takes effect

Official Notice Forms and Practical Example

• Notice of Rent Increase (Sample Letter)
  While Minnesota does not provide a mandatory government form, a written letter is required.
  Example: Your landlord mails you a letter stating, “Effective July 1, 2024, your monthly rent will increase from $1,000 to $1,050 due to increased property taxes.” This satisfies notice rules as long as you receive it at least one rental period plus one day prior.
  See Minnesota Attorney General's Guide for Landlords and Tenants (page 6) for details.
• St. Paul Fair Return Application (Form # RS-1)
  In St. Paul, if a landlord wants to raise rent above the 3% annual cap due to pass-through costs, they must submit the Fair Return Application (RS-1) to the St. Paul Department of Safety & Inspections.
  Example: If your landlord proposes a 7% increase and cites major improvement costs, they should notify you in writing, then file this form with the city for approval.

Summary of Your Rights and Options

• You have the right to advance written notice before a rent increase.
• Landlords in certain cities must follow local rent stabilization ordinances.
• If you believe a rent increase is illegal or improperly noticed, you can file a complaint or seek mediation.

How to File a Complaint About a Rent Increase

If you think your landlord violated notice rules or local rent stabilization laws:

• Contact your local city housing authority (for rent stabilized cities) or the Minnesota Attorney General's Office
• Include a copy of the rent increase notice and your rental agreement
• Request a review or investigation as appropriate

Frequently Asked Questions

1. Can my landlord raise rent any time for any reason in Minnesota?
   Most landlords must wait until your lease ends or provide at least one rental period plus one day written notice. If you live in a city with rent stabilization, additional limits and rules may apply.
2. Do I have to pay a rent increase if I didn't receive written notice?
   No. If your landlord did not provide proper written notice, you are not required to pay the higher rent until the necessary notice period has passed.
3. What can I do if I believe a rent increase is unfair or excessive?
   First, talk to your landlord. If you believe the increase violates local ordinances or notice laws, you can file a complaint with your city housing office or the Minnesota Attorney General.
4. Are pass-through cost increases different from regular rent increases?
   In most of Minnesota, there is no legal difference. In rent-controlled cities like St. Paul, landlords must justify higher increases due to pass-through costs using special city forms.
5. Which board or agency handles disputes for rental issues?
   There is no statewide board, but the Minnesota Judicial Branch Housing Court handles residential tenancy cases, including disputes about rent increases.

Need Help? Resources for Renters

• Minnesota Attorney General – Landlord and Tenant Information
• Minnesota Judicial Branch Housing Court Information
• St. Paul Rent Stabilization Program
• LawHelpMN: Your Rights as a Tenant
• For local support, contact your city’s housing office or legal aid society.

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1. Minnesota Statutes § 504B.141 – Notice of Rent Increase
2. City of St. Paul Rent Stabilization Ordinance
3. Minnesota Attorney General: Landlords and Tenants Handbook
4. Minnesota Judicial Branch – Housing Court

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