Rent control passes in Saint Paul, what moves to make now?

Question

Rent control for Saint Paul passed with a 3% cap on annual rent increases and no mechanism for adjustments based on improvements or resetting to market rates between tenants.

What are some thoughts on how to make the most of this situation if you have properties in Saint Paul?

Seth Borman · Answer

Flip your houses for owner occupants. Or get them vacant now and wait for rents to go up before you register with the city housing office.

If they haven't figured out that they need to register housing units and inspect them regularly, they will.

Jesse Thurston · Answer

Vince,

James had an excellent response to your question. I do a majority of my business in the Saint Paul market and most my clients that are staying in the market are taking advantage. There was supposed to be a vote this week, but have yet to read into it yet. A lot of the 3% cap has been ripped apart since the new rules allow owners to a right of a reasonable return. I have heard of many people being able to get self certified from attorneys and clients. I have also heard that people have got as much as a 15% raise approved by the city. Saint Paul is not dead in my opinion and gives an advantage with owners running for the hills.

James Gilson · Answer

Good afternoon,

I looked at the City of Saint Paul website, and read over the following page: Rent Stabilization Rules and Processes | Saint Paul Minnesota (stpaul.gov)

Based on what I see, landlords can raise rent 3% every year no questions asked. However, landlords also have the option to "Self-Certify" a rent increase greater than 3% but less than 8%. Self-certifications are subject to an audit by the city. Landlords who want to go this route have to fill out the following forms (the second is not mandatory but suggested):
Request for Rent Increase Greater Than 3% - Landlord Application (office.com)
Landlord MNOI - Cap Improvement Worksheet.pdf (stpaul.gov)

Additionally, landlords can raise rent by greater than 8% by submitting a request which is then reviewed by the city.

Has anyone successfully increased rent greater than 3% but less than 8% by using the self-certification process? Is inflation/CPI increases valid justification to increase the rent greater than 3%? On page 15 of this worksheet Landlord MNOI - Cap Improvement Worksheet.pdf (stpaul.gov) it gives a line for Percent Annual Increase CPI. I need to go through the whole worksheet for my property but am hoping someone already has experience with this process.

Thank you

Rent control passes in Saint Paul, what moves to make now?

Rent control passes in Saint Paul, what moves to make now?

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