Minnesota tenant screening laws protect both landlords and renters. They set limits on fees and require clear consent for checks. Landlords must follow strict steps to avoid disputes. Tenants gain fair treatment and the right to know why they are denied. Each rule improves trust in the rental process. LeaserRunner’s guide explains the basics in simple terms. Use it to stay compliant and manage tenant screening in Minnesota with confidence.
Overview of Tenant Screening Laws in Minnesota
Tenant screening in Minnesota is shaped by both state and federal rules. Together, these laws set the ground for how landlords collect information and how renters are protected. They explain what can be checked, how records may be reported, and what rights applicants have when seeking housing. Understanding Minnesota tenant screening laws helps landlords and tenants navigate the rental process with greater clarity.
Fair Credit Reporting Act (FCRA)
The FCRA is a federal law that governs tenant background screening nationwide. Landlords in Minnesota must:
- Get written consent before running any background check.
- Provide an adverse action notice if they deny or change lease terms based on a report.
- Allow applicants to see and dispute errors in a tenant screening report.
These rules keep rental application laws in Minnesota fair and transparent to all applicants.
HUD Fair Housing Guidance on Criminal Records
HUD guidance explains how criminal history should be reviewed in the rental process. It highlights:
- Blanket bans on applicants with criminal records are not allowed.
- Landlords must apply HUD criminal background check requirements consistently.
- Each applicant must be judged on their individual circumstances, not just past arrests.
This policy supports fair housing and reduces the risk of hidden bias in tenant screening in Minnesota.
Minnesota Human Rights Act (MHRA)
The MHRA expands protections found in federal law. It makes it illegal to deny housing based on:
- Marital status
- Sexual orientation
- Source of public assistance
These safeguards strengthen lease laws in Minnesota and ensure equal access to housing.
Minnesota Statutes Chapter 504B — Landlord and Tenant
Minnesota Statutes Chapter 504B defines core rental rules. Important sections include:
- § 504B.173 — Applicant Screening Fee: Landlords must disclose the screening service and criteria before collecting fees.
- § 504B.241 — Residential Tenant Reports: Tenants have the right to access and correct their records
- § 504B.117 — ITIN Use: Applicants cannot be denied for using an ITIN instead of a Social Security Number.
These provisions align Minnesota background check rules with federal standards. They ensure fairness in both screening and daily rental practices.
Allowable Tenant Screening Criteria in Minnesota
Minnesota is known for having a flexible tenant screening system compared to many other states. The law sets limits on fees and requires landlords to share screening details before charging an applicant. Even so, landlords still have room to set their own standards. Under Minnesota tenant screening laws, those standards must be fair and free from discrimination.
To stay compliant, landlords should apply the same criteria to every applicant. A written policy helps protect both the property owner and the renter.
Written Screening Policy Requirements for Landlords
Minnesota law is clear. If landlords charge an application fee, they must first give the applicant:
- The name and contact details of the screening service.
- The screening criteria used for approval or denial.
- A written note stating that the fee is non-refundable.
This must happen before the fee is collected. If the landlord rejects the application, they must notify the applicant within 14 days and explain why. These rules are part of Minnesota tenant screening laws and ensure that the process is transparent.
Under tenant screening laws in Minnesota, applicants can submit a portable tenant screening report (PTSR). This allows them to reuse the reports for multiple landlords. However, landlords are not required to accept a PTSR. If you do, you won’t need to charge the applicant's tenant screening fees.
Credit & Rental History
Credit reports are a common part of screening. Landlords may check:
- Credit score.
- Unpaid debts or bankruptcies.
- Late accounts.
Rental history is just as important. Through rental verification, landlords can see if a tenant paid rent on time or broke a lease. Written consent is required before running a credit check. This rule follows both federal law and tenant screening laws.
Eviction Records
Landlords may review court records for past evictions. This is part of a standard background check for renters in Minnesota. Records are available through the Minnesota Public Access (MPA) Remote system. Many tenant screening services in Minnesota include this step. Any denial based on eviction history must match the criteria listed in the landlord’s written policy.
Criminal History
Minnesota allows landlords to check criminal history, but bans blanket rules. They must weigh:
- The type of crime.
- How long ago did it happen?
- Whether it affects housing safety.
Both state law and federal law in the U.S. require an individual review. A rule that unfairly blocks people with certain records can be seen as discrimination.
Income Requirement
Minnesota law does not set an income rule. Still, most landlords add it to their criteria. A common standard is the “3x rent rule.” This means tenants should earn three times the monthly rent. It is one of the common requirements to rent a house in Minnesota. It helps landlords verify tenant income and ensures that rent is affordable.
Minneapolis Local Ordinances in Tenant Screening Criteria
The City of Minneapolis has extra rules that add to Minnesota tenant screening laws. These are part of the Renter Protection Ordinance. Landlords must follow one of two ordinances: inclusive screening criteria or individualized assessment.
Inclusive Screening Criteria
If a landlord chooses this option, they cannot use stricter rules than what the city allows.
Key limits include:
- No use of misdemeanor convictions older than 3 years.
- No use of felony convictions older than 7 years.
- Even serious felonies, like robbery or sexual crimes, cannot be used if more than 10 years old.
- Eviction judgments 3 years or older may not be considered.
- Settlements more than one year old cannot be used.
- Dismissed evictions or judgments in favor of the renter are off-limits.
- Lack of credit history alone is not grounds for denial.
- A credit score alone cannot decide approval or rejection.
Individualized Assessment
Landlords who want stricter checks must use this path. They must give written screening criteria and review any extra documents from the renter. These can include letters of reference or explanations of past issues.
When reviewing, landlords must weigh:
- Type and severity of the incident.
- Number of incidents.
- How long ago the issue happened
- Age of the applicant at the time.
If they deny an applicant, they must send a written notice within 14 days. The notice must list the reasons and confirm that they reviewed the extra evidence.
Income and Payment History
Minneapolis allows landlords to set an income rule, such as requiring rent not to exceed one-third of income. But applicants can give proof of on-time rent payments even if they do not meet the income level. Landlords must accept this proof.
How Much Landlords Can Charge Tenant Screening Fees
Minnesota sets clear rules on how much landlords can ask for during the screening stage. The details below outline the limits, refund rules, deposit regulations, and the associated legal risks of violating these laws.
Application Tenant Screening Fees
Under Minnesota tenant screening laws, landlords can charge a screening fee. The fee must match the actual cost of running a background check. There is no set limit, but landlords cannot charge more than the screening costs.
Minnesota law requires landlords to:
- Tell applicants the name and contact details of the screening company before taking payment.
- Not charge any fee if no rental unit is available.
- Refund any amount that is higher than the real cost.
When asking what landlords look for in a background check, the answer often includes credit history, rental history, and eviction history. These checks are part of the cost that the screening fee covers.
Refund Policy
The law states that the part of the fee equal to the screening cost is nonrefundable. However, landlords must return any extra money collected above that amount. In addition, they must inform applicants of their decision within 14 days. If an application is denied, the reasons must be provided in writing.
Additional Regulations on Security Deposits
Under Minnesota rental laws, there is no cap on the security deposit that landlords may require. After the lease ends, the deposit must be returned within 21 days, minus any lawful deductions. Landlords must also give a written itemization of those deductions. For prelease deposits, the agreement must be in writing and must state the conditions for refund.
Legal Consequences of Violating the Rules
Failing to comply with Minnesota tenant screening laws can result in serious penalties:
- Charging improper fees may lead to civil fines up to $100 plus repayment of the fee.
- Wrongfully keeping a security deposit can result in double damages, interest, and attorney fees.
- Ignoring the 14-day rule or failing to provide written denial reasons can trigger fair housing or consumer protection claims.
To avoid mistakes, landlords often rely on a tenant screening checklist. This ensures that all applicants are reviewed fairly and consistently, while reducing the risk of costly disputes.
A Practical Guide to the Minnesota Tenant Screening Process
Screening tenants in Minnesota requires careful steps to follow the law and protect your rental business. The process is simple when broken into clear stages. By following Minnesota tenant screening laws, landlords can avoid mistakes, stay compliant, and choose the right renter. Below are the key steps every landlord should take.
Step 1: Collect Applications and Screening Fees
Landlords must collect applications before charging any fee. Under tenant screening laws, the fee cannot be higher than the actual service cost. Many new landlords ask, “How much is a background check for an apartment?” The rule is clear: you can only charge what the screening service charges.
If you take more, you must return the balance. Application fees are non-refundable and must not be treated as a security deposit. A written receipt is required.
Step 2: Process Applications
Applications should include:
- Contact information
- Rental and work history
- Signed consent for a credit report
All applications must be judged with the same rules. Minnesota tenant screening laws forbid discrimination against protected classes. Clear rental requirements in Minnesota help landlords stay consistent and avoid legal risk.
Step 3: Run a Minnesota Tenant Screening Report
Landlords may run reports only with written consent. These may cover:
- Credit history
- Criminal record
- Eviction cases
- Past rental details
Always check the tenant screening report data for accuracy. Minnesota allows the use of third-party services or public court records. This step is also called tenant background screening, and it confirms if an applicant is reliable.
Step 4: Evaluate & Make the Final Decision
Decisions must be based on the same standards for every applicant. If you deny someone, you must explain why in writing within 14 days. This protects you from lawsuits and gives tenants clear reasons. Approved tenants can then move forward to sign a lease.
Step 5: Issue Decision Notice
Landlords must inform every applicant of the result. If the action is negative—denial, higher rent, extra deposit, or request for a co-signer - an adverse action notice is required. The notice must state:
- What action was taken
- The name of the reporting agency
- The agency did not make the decision
- The tenant’s right to dispute the report within 60 days
Tenant Rights During the Tenant Screening Process
When applying for a rental, Minnesota renters are protected by state and federal law. Minnesota tenant screening laws ensure fairness and keep the process transparent.
Privacy Rights & Access to Screening Report
Landlords must disclose which screening service they plan to use before taking any fee. If the application is denied, the tenant can request a free copy of the screening report within 60 days. This gives the applicant the chance to check what data was used in the decision.
In some cases, tenants may also request a portable tenant screening report, which allows them to reuse one verified report across multiple rental applications.
Dispute of Inaccurate Information
Errors in a rental house background check can cause wrongful rejections. Federal law allows tenants to dispute incorrect items, and the screening agency must review and correct them within 30 days. This prevents applicants from being judged based on outdated or false records.
Adverse Action Notice
If a landlord takes negative action, they must issue an adverse action notice. This applies if they:
- Denies the application.
- Requires a co-signer.
- Raises the rent or deposit.
The notice must explain the reason, give the name of the screening service, and tell the tenant how to dispute the report. Under Minnesota tenant screening laws, landlords also must provide written reasons for denial within 14 days. This ensures transparency and gives tenants a fair notice period to respond.
Protection from Discrimination
The Fair Housing Act and Minnesota Human Rights Act ban discrimination in the screening process. A landlord cannot reject someone because of race, religion, gender, disability, marital status, or use of public assistance. Screening must focus on valid factors such as income verification and cash flow report, rental history, or credit standing.
Fair Screening Criteria Disclosure
Before charging any fee, landlords must provide applicants with their written screening standards. This may include:
- Minimum income-to-rent ratio.
- Credit score threshold.
- Eviction history rules.
- Background check requirements.
Having these rules upfront ensures fairness and helps landlords stay consistent. For property owners asking “how much rent should I charge”, clear criteria also help align rental pricing with tenant qualifications under Minnesota tenant screening laws.
Best Practices for Minnesota Landlords to Stay Compliant
Following Minnesota tenant screening laws is not optional. Landlords must protect both their rental business and their tenants. Clear steps and consistent actions keep you compliant and reduce legal risks.
1. Disclose Screening Standards in Writing
Minnesota requires landlords to share their screening criteria in advance. Put your rules in writing before collecting any fees. List credit score minimums, rental history checks, and how you will verify tenant income. This avoids confusion and sets clear expectations.
2. Limit Application Fees to Actual Costs
Application fees must reflect the true cost of the screening service. You cannot charge extra or keep more than what the service costs. Always give a receipt to the applicant and keep a record for your files.
3. Obtain Signed Consent Before Running Checks
You must get written permission before running a background or credit check. Consent is required before you check tenant screening report details such as credit, criminal, or rental history. Without signed consent, you cannot legally access this information.
4. Provide Timely Decisions Within 14 Days
Under Minnesota tenant screening laws, you must tell applicants if they are approved or denied within 14 days. If you reject them, you must give reasons tied to your screening criteria. For example, low credit scores or past eviction history must be explained in writing.
5. Accept Portable Tenant Screening Reports (PTSR)
Although Minnesota doesn’t require landlords to accept a PTSR, it will bring you many positive outcomes during your tenant screening process. That applicants use the PTSRs will help you save time, widen your pool of applicants, and meet Minnesota tenant screening laws.
To make the process easier for both sides, choosing a reliable screening service is really important. Landlords and tenants can use LeaseRunner’s safe and state-compliant PTSRs. It generates instant and accurate reports in one digital platform, including credit, eviction, criminal, and income verification reports. Meanwhile, its strong security system protects the applicants’ private data.
6. Maintain Consistency to Avoid Discrimination
Apply the same screening rules to every applicant. Do not make exceptions on a case-by-case basis. Minnesota adds protections beyond federal law, such as marital status and public assistance. Consistency helps avoid discrimination claims and keeps your process fair.
Conclusions
By following Minnesota tenant screening laws, landlords stay compliant and tenants feel protected. The rules keep fees fair, require clear consent, and set limits on reports. Landlords reduce legal risks and build trust with renters. Tenants gain clear rights during the rental process. Applying these laws creates a system that is safe, fair, and consistent for everyone in Minnesota.
FAQs
1. What background checks can landlords run in Minnesota?
Landlords in Minnesota can review credit reports, criminal records, rental history, and eviction history. They must get written consent from the applicant before running any checks. All reports must follow the Fair Credit Reporting Act (FCRA). This law gives tenants the right to see and dispute errors in their report.
2. What are the rent control laws in Minnesota?
Minnesota has no statewide rent control. Cities may set their own rules. In 2021, St. Paul passed a rent control ordinance with limits on rent increases. Minneapolis has also studied rent stabilization, but rules vary by city. Landlords should confirm local laws before setting rent.
3. What do Minnesota tenant screening laws require?
Minnesota tenant screening laws set clear rules for application fees and decisions. Fees cannot be more than the actual screening cost. Before charging, landlords must give applicants written criteria and the name of the screening service. Applicants must be told within 14 days if they are approved or denied. If denied, the landlord must explain which criteria were not met.
4. Is there a limit on tenant screening fees in Minnesota?
Yes. Under Minnesota law, landlords may charge an application or screening fee, but it must reflect the actual cost of screening. They cannot charge more than what is needed for the report. The fee must be listed in writing before collecting payment. If a landlord does not complete the screening or rent the unit to another applicant, they must refund the fee within seven days.
5. Are landlords in Minnesota required to accept Portable Tenant Screening Reports (PTSR)?
No. Minnesota landlords are not required to accept a PTSR, but they may choose to. Accepting a PTSR helps save time, reduce costs, and promote fairness for tenants. A PTSR contains verified information such as: credit, criminal, and eviction history. Landlords who accept these reports can still verify details independently, as long as they follow Minnesota privacy and fair housing laws.
