PowerPoint for Evictions & Tenant Screenings for 9/5/12

1. HOME Line
612-728-5767
Homelinemn.org

2. Tenant/Landlord Law Resource Book
If you enjoyed today’s speech, you may find HOME Line’s book on
Minnesota tenant/landlord law useful.
200+ pages outlining practical advice:
HOME Line wrote How to Be
the Smartest Renter on Your •Shopping for an Apartment
•Applying for an Apartment
Block to help renters find, get •Housing Discrimination
and keep rental housing. This •Understanding Leases
book is based on the real-life •Neighbors & Roommates
•Privacy Violations
concerns we hear from •Repairs
thousands of callers to our •Retaliation
tenant hotline. It gives the best •Ending a Lease
ways to handle and avoid the •Rent Increases
•Evictions
most common rental problems. •Lockouts & Utility Shutoffs
A great resource for attorneys •Security Deposits
who occasionally hear questions •Abandoned Property
•Landlord Foreclosures
about housing and •Manufactured (Mobile) Homes
tenant/landlord law. •Subsidized Housing
Cost: Paperback $20 (plus •Caretakers & Other Employees of the
Landlord
taxes and shipping) •Renters Credit (CRP)
Also available as a •Tenant Organizing
digital e-book for $9.99 •Form letters & other resources
www.homelinemn.org/book

3. Application
• Vacancy Rate
• Screening Purpose:
– Criminal
– Rental
– Credit History

4. Application Fees
Extra 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

5. 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

6. 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

7. 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)

8. 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

9. Late Fees
Rule 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)

10. Late Fees
Rule 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

11. 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

12. 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

13. 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.

14. 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

15. 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

16. 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

17. 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.”

18. 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)

19. 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)

20. 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

21. 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.

22. If Landlord doesn’t comply
with 21-day rule
Tenant 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”)

23. Sample Deposit Problem
• Withheld deposit $500
• + Interest (1 Year) 5
• Multiplied by 2 1010
• +500 Punitive 500
• Total $1,510

24. 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

25. Tenant/Landlord Law Resource Book
If you enjoyed today’s speech, you may find HOME Line’s book on
Minnesota tenant/landlord law useful.
200+ pages outlining practical advice:
HOME Line wrote How to Be
the Smartest Renter on Your •Shopping for an Apartment
•Applying for an Apartment
Block to help renters find, get •Housing Discrimination
and keep rental housing. This •Understanding Leases
book is based on the real-life •Neighbors & Roommates
•Privacy Violations
concerns we hear from •Repairs
thousands of callers to our •Retaliation
tenant hotline. It gives the best •Ending a Lease
ways to handle and avoid the •Rent Increases
•Evictions
most common rental problems. •Lockouts & Utility Shutoffs
A great resource for attorneys •Security Deposits
who occasionally hear questions •Abandoned Property
•Landlord Foreclosures
about housing and •Manufactured (Mobile) Homes
tenant/landlord law. •Subsidized Housing
Cost: Paperback $20 (plus •Caretakers & Other Employees of the
Landlord
taxes and shipping) •Renters Credit (CRP)
Also available as a •Tenant Organizing
digital e-book for $9.99 •Form letters & other resources
www.homelinemn.org/book