Q: My landlord sent me an e-mail saying that our rent is going up $100 each in September. My two roommates and I had signed a six-month lease through August. A friend told me that my landlord can only raise the rent a certain percentage each year. Is this true? Is there a way to respond to his e-mail so I might be able to keep my rent from going up?
A: In Minnesota, landlords cannot raise the rent while your lease is still running. However, once your lease term ends, which is August in your case, then your landlord can raise the rent to whatever amount they choose.
There is no law requiring them to limit their increase in rent to a certain percentage or dollar amount, unless you live in subsidized housing. It is legal for your landlord to raise you and your roommates' rent by $100 each in September since your current lease term ends in August. You should respond to his e-mail by stating that you enjoy living there, but cannot afford an increase in rent.
If you and your roommates are good tenants, your landlord may not raise the rent for September or he may lower the increase if he doesn't want to lose strong tenants. The problem landlords run into by raising the rent is losing good tenants and the possibility of having the apartment open for a few months and not generating any rental income.
You can negotiate with your landlord to lower the amount of the increase or work out another arrangement that's favorable to both parties. Make sure to get any agreement in writing and signed by both parties.
Q: I rent a single lot at a resort in Alexandria, Minn., and the owners just announced a 50 to 70% increase in the rent for next year. The amount depends on where the lot is located within the resort. Is it legal to be assessed such a dramatic increase from one year to the next?
A: Minnesota law requires that an increase in rent may only occur after the lease runs.
Once your current lease term ends, it is legal for the property owner or landlord to raise the rent as high as they would like and to charge higher rent for some based on a larger size or location of the lot, but it cannot be raised for discriminatory reasons. There is no law or limit on what owners or landlords can charge in rent once your current lease is up, unless it's subsidized housing or property, such as Section 8.
However, they run the risk of raising it above what their current good tenants want to pay. You should speak to the owner and let them know the new rent amounts may be too pricey for you to keep renting there, but that you'd like to stay on at that resort so would they be willing to negotiate a smaller increase for your lot. It doesn't hurt to ask and keep an open line of communication with your landlord so there are no surprises.
If you do work out an agreement with your landlord, get it in writing and signed by both parties.
Kelly Klein is a Minneapolis attorney. Participation in this column does not create an attorney/client relationship with Klein. Do not rely on advice in this column for legal opinions. Consult an attorney regarding your particular issues. E-mail renting questions to kklein@kleinpa.com. Information provided by readers is not confidential.
