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Updated almost 2 years ago, 01/30/2023

User Stats

14
Posts
1
Votes
Chintaka R.
  • Shakopee, MN
1
Votes |
14
Posts

Charging utilities on a new lease.

Chintaka R.
  • Shakopee, MN
Posted

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.

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