The biggest reason why every state has extensive laws regarding renting a property is because entering into a lease agreement with someone you have never known, carries all kinds of risks. These laws exist to protect not only the tenant, but also the landlord from being exploited in anyway. The act of letting someone stay in a property you own in exchange of money seems like a profitable venture, but in the absence of a lease, this can end up costing you significantly. Every landlord is advised to follow the rules and regulations regarding the landlord tenant relation in order to ensure that they have a mutually beneficial relationship with anyone they lease their property to.
1. Always make sure that a thorough inspection of the property is done, in the presence of the tenant, before the two of you sign the lease. This ensures that both of you are witness to the condition of the property, and are completely satisfied with the deal.
2. If you want to employ a manager to take care of the properties that you own and wish to put out on lease, the Minnesota law mandates that you get a background check done before you appoint anyone.
3. A landlord is allowed to charge a screening or an application fee from a prospective tenant. However, you cannot charge these fees if you do not have any current vacancies.
4. You can demand that the tenant pay a damage deposit as a form of security in case your rental unit suffers any undue damage while they reside in it. There is no limit on the amount of money you can demand as security from the tenant, and in case of a lease that does not have a fixed deadline, the landlord is allowed to increase this deposit on a periodic basis, just like the rent.
5. Tenants are required to pay the rent that is mentioned in the lease agreement.. This payment can be made via cheque or cash, although in case of cash payment of rent, the landlord must provide a written receipt.
6. You can charge a late fee from your tenant if they do not pay the rent on time. This can only be done if the clause of late fees is included in the lease agreement. The agreement must be in written form and should clearly specify the terms of late fees like dates and amount.
7. The tenant has the right to privacy and the landlord cannot enter the rental unit. There are exceptions to this rule which allow you to enter the property for the purposes of a business visit, after you have given the tenant prior notice. Emergency entries are excluded from this rule, if the rental unit or the tenant may be in some sort of immediate danger.
The notice must be given to the tenant in case you want to terminate the lease earlier than what was mentioned in the lease agreement