What to do When a Tenant Stops Paying Rent?
What to Do When a Tenant Stops Paying Rent in Minnesota
As a landlord, facing a tenant who stops paying rent can be frustrating and stressful. It’s essential to handle the situation carefully to avoid legal missteps and protect your rights under Minnesota law. This article outlines the steps Minnesota landlords should take when dealing with nonpayment of rent, from communicating with tenants to pursuing legal remedies such as eviction.
Step 1: Review the Lease Agreement
The first step in addressing nonpayment is to review the lease agreement. This document governs the rental relationship and provides crucial details about payment terms, due dates, late fees, and notice requirements.
Late Fees: Check if your lease includes a late fee clause and ensure it complies with Minnesota law, which mandates that late fees must be reasonable and clearly outlined in the lease. Further, late fees may not be higher than 8% of the late monthly rent.
Grace Periods: Some leases provide a grace period for rent payments. Confirm whether your lease includes this provision before proceeding.
By understanding your lease, you’ll know exactly what terms the tenant has violated and how to address the issue legally.
Step 2: Communicate with the Tenant
Before taking formal legal action, try to resolve the issue through communication. Many tenants may have legitimate reasons for late or missed payments, such as temporary financial hardship. These reasons may be likely to end soon, or they may be ongoing for an extended period of time. It is common for landlords to hear a wide variety of excuses, so it is also important to exercise judgment as to whether a provided reason for a late payment is legitimate.
It is best practice for a landlord to provide a warning to a tenant prior to moving forward with eviction, as this may alleviate the need to engage in a costly and potentially lengthy eviction process.
Send a Written Reminder: It can be effective to politely remind the tenant about the overdue rent. Many landlords include this in a letter, email, or text message.
Offer a Payment Plan: If the tenant is struggling financially, offering a payment plan may help them catch up on rent without requiring formal legal action.
Document Everything: It is wise to keep records of all communications with the tenant, including emails, texts, and phone calls, to protect yourself if the matter escalates.
Open communication can often resolve the issue without the need for further action.
Step 3: Serve a Notice to Pay or Vacate
If communication fails, the next step is to serve the tenant with a Notice to Pay or Vacate. This formal notice informs the tenant that they must pay the overdue rent or move out of the property.
Notice Requirements: Minnesota law specifies a mandatory notice period for nonpayment of rent, and requires that a minimum of 14 days be provided before commencing an eviction.
Delivery Method: Minnesota has a statewide requirement that this notice either be provided via first class mail or be served personally. However, some localities have different requirements, so it is important to carefully review both state and local law to determine how the notice must be sent.
Content: The notice should include the total amount owed, the payment deadline, and the consequences of failing to comply. Minnesota has a list of specific requirements that must be contained in the notice, and it is important to consult with an eviction attorney with any questions on these details.
This notice is an essential precursor to filing an eviction action. Failing to provide a proper notice or failing to include the requisite details will likely result in any eviction action being dismissed.
Step 4: File an Eviction Action (Unlawful Detainer)
If the tenant does not pay the rent or vacate the property by the deadline specified in the notice, you can proceed with filing an eviction action, also known as an Unlawful Detainer action, in Minnesota court.
How to File an Eviction Action
Prepare the Complaint: Include details about the lease agreement, the amount of unpaid rent, and prior notices served.
File with the Court: Submit the complaint in the district court of the county where the property is located.
Serve the Tenant: The court documents must be served to the tenant. The service requirements are somewhat complicated, and failure to properly serve the tenant will result in an eviction being dismissed.
In most Minnesota counties, if the landlord for the property is an entity (such as an LLC), it is required that it be represented by an attorney. It is not required for landlords who own their properties personally to be represented by an attorney, but it is always wise for them to have representation to avoid common pitfalls.
The Court Hearing
Minnesota courts typically schedule eviction hearings relatively soon after the filing of the complaint. At the hearing the landlord must:
Present evidence of nonpayment, such as the lease agreement, payment history, and the Notice to Pay or Vacate.
Be prepared for the tenant to raise defenses, such as claims of uninhabitable conditions or improper notice.
Follow the Minnesota rules of evidence and all applicable civil procedure rules.
If the court rules in your favor, you will receive a Writ of Recovery, allowing you to reclaim possession of the property.
Step 5: Enforce the Court Order
If the tenant does not vacate voluntarily after the court issues a Writ of Recovery, you can work with the sheriff’s office to enforce the order. It’s important to follow the legal process carefully:
Avoid Self-Help Evictions: Minnesota law prohibits landlords from taking actions such as changing locks, removing belongings, or shutting off utilities without a court order.
Schedule the Removal: Coordinate with the sheriff to ensure the removal of the tenant and their belongings is done lawfully.
Step 6: Recover Unpaid Rent
After regaining possession of the property, you may still need to address unpaid rent. Options for recovering the owed amount include:
Security Deposit: Apply the tenant’s security deposit to the unpaid rent, if applicable.
Small Claims Court: File a claim to recover the remaining balance, up to the jurisdictional limit.
Debt Collection: Consider hiring a debt collection agency to pursue the owed rent on your behalf.
Weigh the costs and benefits of pursuing unpaid rent to determine the most appropriate course of action.
Legal Considerations for Landlords
When dealing with nonpayment of rent, it’s vital to comply with Minnesota’s landlord-tenant laws to avoid penalties or counterclaims from the tenant:
Prohibited Actions: Do not engage in self-help measures, such as locking the tenant out or shutting off utilities.
Habitability Requirements: Ensure the rental property meets all health and safety standards, as tenants may raise uninhabitable conditions as a defense.
Retaliation: Avoid retaliatory actions against tenants who have exercised their legal rights, such as reporting code violations.
For detailed information, consult the Minnesota Attorney General’s Landlord and Tenant Handbook.
How Roach Law PLLC Can Help
Navigating the eviction process can be legally complex and time-sensitive. At Roach Law PLLC, attorney John E. Roach specializes in assisting landlords with nonpayment issues and eviction proceedings. Our services include:
Drafting and serving notices.
Representing landlords in eviction hearings.
Advising on compliance with Minnesota landlord-tenant laws.
Preparing strong lease agreements to avoid legal pitfalls.
We are committed to protecting your rights as a landlord and helping you resolve tenant disputes efficiently and effectively.
Contact Roach Law PLLC Today
If you’re dealing with a tenant who has stopped paying rent, don’t wait to take action. Contact Roach Law PLLC for a consultation to discuss your options and learn how we can assist with your case.