Charging utilities on a new lease.

[Chintaka R.]

Hello, I own a duplex in Saint Paul. Does anyone know if there is a restriction for charging utilities on a new lease? I am planning to start charging a future tenant for trash.  There is a section in new control rules regarding the charging utilities to existing clients, but it does not specifically address new leases. Below is an excerpt from the rent control website. Your input is much appreciated. Thanks!

"How utilities are billed to Tenants depends on several factors including previous lease arrangement and how utilities are metered in a building. Utility costs paid by the Landlord and not passed through to the Tenant are captured in the Maintenance of Net Operating Income (MNOI) Worksheet.

1. When a meter is shared between multiple units in a building and a Landlord wishes for the Tenant to pay the Utilities, the Landlord must follow all conditions established in Minnesota Statutes section 504B.215, subdivision 2a.
   1. If the Landlord previously paid the Tenant’s Utilities and the Landlord changes the Rental Agreement to require the Tenant to pay Utilities as a Pass-Through Expense, the Landlord must decrease the Rent to account for the increase in the Tenant’s monthly payments.
2. If a separately metered building requires tenants to pay the utility service provider directly, then payments to the utility service provider are not considered Rent.
   1. A Landlord with a separately metered building who pays a utility provider directly may pass-through the costs to tenants for the utilities that are consumed by the unit.
   2. If the Landlord previously paid the Tenant’s Utilities and the Landlord changes the Rental Agreement to require the Tenant to pay Utilities as a pass-through expense, the Landlord must decrease the Rent to account for the increase in the monthly amount the Tenant will pay.
   3. If the Landlord previously paid the Tenant’s Utilities and the Landlord changes the Rental Agreement to require the Tenant to pay the utility service provider directly or the Landlord wishes to pass through the utility cost to Tenants, Rent must be reduced to account for the increase in the Tenant’s monthly payments." 

[James Hamling]

Ok @Chintaka R., look, when this whole insanity with Saint Paul started keep in mind it was known as the strictest rent controls in U.S.A.. Since then, it has become the most chopped, amended, twisted and contorted abortion of a rent control ever in history. 

To put this in terms, there is now an infographic for rent increase exception. Think about that, it's so damn complicated it requires a chart for just 1 function of the regulation. https://www.stpaul.gov/sites/d...

Here is the link on there rule making and implementation for '23'. If you can make sense of this, your a super-human. https://www.stpaul.gov/departm...

 And here is there newest new rules update implementation https://www.stpaul.gov/sites/d...

So here is the thing, call the city of Saint Paul and ask them to make sense of it. Your going to have to try hard to get a human on the phone because they already got so slammed that they refuse to talk to anyone, also because THEY don't know, it's such a mess they themselves can't follow or figure things out. 

My opinion is just wait a little bit, it will be changed more, and more yet. It's already crystal clear the whole thing is dead, but there refusing to let go because of the fear of the activist extremes. There struggling to implement and manage this to say the least. 

My direction, which I am so happy for doing, I got out when the getting was good. And holy-cow am I sooooo happy for having done that. If you gave me your property for $1.00 I would give it away, THAT's how much I wouldn't deal with it. 

Just get out. It's not getting any better. As this stupidity goes on more and more people are going to just dump properties to get out. Get out while you can, 1031 to a city that makes sense. The west metro is full of great markets, you know this. Stop the bleeding while you still have blood to bleed.