Q: I found out that my landlord has been renting to me without a rental license, as the city requires. We had agreed upon my moving out by Jan. 1, and I was out ahead of schedule. However, we disagree on the amount withheld from my security deposit. My landlord returned part of my deposit, but with no itemized list of repairs needed, money spent or receipts, as I requested. The landlord is now asking for partial payment of rent for December. Can my landlord legally ask for and collect rent without a rental license?
A: Many cities in Minnesota require landlords to be licensed. Licensing rules vary, depending on the city, as do the consequences of not having a license. In some cities, it is considered a criminal act to rent an unlicensed rental unit, and may require a complete refund of any rent collected. Since your landlord was not licensed to collect rent, you are in a good position to demand your entire security deposit back and not be responsible for partial rent for December. You may even have a great case for suing your landlord and collecting all the rent you paid him, depending on the city ordinances where you live. However, your landlord has an argument that you received the value of living in the unit, and that you should pay something for the time you occupied the property. Many city ordinances require landlords who operate without a rental license to pay a penalty and fees.
You should contact your landlord and negotiate a deal that releases you from paying partial rent for December and that refunds some of your security deposit. You should tell your landlord that it's illegal to collect rent without a license, and ask for a written agreement confirming your release from outstanding rental fees and repair costs. Make sure you get the agreement in writing and signed by both parties. If the landlord refuses, then consider taking him to small claims court.
Lease terms
Q: I have lived outside the United States for many years. The leases where I rented were always redone every year after they expired. I'm moving back to Minnesota and wondering whether a lease term of 12 months is common.
A: The most common leases in Minnesota are one-year leases and month-to-month leases. A one-year lease lasts until its end date, which is typically stated in the lease. Once the lease expires, if there is no renewal, then the lease ends or reverts to a month-to-month lease. Month-to-month leases are also called oral leases or periodic leases and can go on forever unless either the tenant or landlord gives proper notice to terminate. Sometimes there is a carry-over provision, stating that once the one-year lease ends and neither party gives notice, then the terms of the lease carry over, and the one-year lease reverts to a month-to-month lease with all other lease terms carrying over, including the notice provision. Some courts have upheld 60-day-notice requirements in expired leases, even though there is a provision in state law prohibiting automatic renewal of leases for periods of two months or more.
If you sign a month-to-month lease, or your one-year lease reverts to a month-to-month lease, then you or your landlord can end the lease by giving the other party written notice to vacate one full rental period or three months before the desired termination date, whichever is less. Be aware that if you sign a month-to-month lease, you can terminate only by giving the landlord proper notice. Since notice needs to be a full rental period or one month's notice, which can range from 28 to 31 days, depending on the month, then you must give at least one full lease period of notice. For example, notice for March 31 would have to be in writing and received by Feb. 28 at the latest.
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, or write to Kelly Klein c/o Star Tribune, 650 3rd Av. S., Minneapolis, MN 55488. Information provided by readers is not confidential.
