SF5307

Purpose

To ensure tenants pay only for the days they actually occupy a residential unit when a lease ends mid-month or begins after the start of the month. The bill establishes a clear rule for prorating rent so it reflects the real number of days of occupancy.

Main Provisions

• Prorated rent is required: When a lease ends on a date before the last day of the final month, or begins after the first day of the month, the rent for that first or final month must be prorated at the average daily rate for that month so the tenant pays only the actual days of occupancy.
• Applies to all leases: This prorated rent rule applies to all residential leases, including those that require the first or last month’s rent to be paid in advance.
• Waivers are not allowed: Any attempt by a landlord and tenant to waive this prorated rent requirement, by contract or otherwise, is void and unenforceable.
• Calculation method: Prorated rent must use the actual number of calendar days in the incomplete calendar month in which the lease expires.
• Remedies clause limitations barred: Any lease clause that limits tenant remedies for this section (for example, requiring arbitration or prohibiting a class action) is void and unenforceable.

Scope and Applicability

• Applies to Minnesota residential leases in general, including situations where the first or last month’s rent has been prepaid.

Changes to Existing Law

• Introduces a explicit prorated rent standard for incomplete first or last months.
• Expands tenant protections by making waivers of the rule void and voiding certain contractual restrictions on remedies.
• Aligns enforcement with the actual days of occupancy and the calendar month framework.

Summary of Impact

• Tenants will pay rent only for the days they can occupy, even if a lease ends mid-month or starts mid-month.
• Landlords cannot contract away this prorated rent rule or restrict how tenants can seek remedies if the rule is violated.

Relevant Terms prorated rent, average daily rate, calendar days, incomplete month, final month, first month, occupancy, lease, Minnesota Statutes 2024 section 504B.116, waiver, void and unenforceable, arbitration, class action, tenant remedies, residential lease, prepaid rent.