Minnesota rental property owners and property managers have another round of landlord-tenant law changes to be aware of. Effective August 1, 2026, new state requirements address how rent can be paid when an online payment system fails, how final utility charges can be handled when a tenant moves out, who may be named in an eviction action, and certain situations involving expedited evictions.

For Minnesota landlords—particularly those who manage their own rental properties—these changes are a good reminder of how quickly rental regulations continue to evolve.

Online Rent Payment Systems Need a Backup

Online rent payment portals have become standard for many rental properties, but technology does not always cooperate.

Under the new Minnesota law, when a landlord requires or allows tenants to use a digital payment platform and that system is not functioning, the landlord must provide the tenant with an alternative way to make the payment. Importantly, the landlord cannot charge the tenant a fee for using that alternative method.

If the landlord knows that the payment system is down, access must be restored or another payment method offered as soon as practicable.

The law also restricts landlords from taking adverse action—including assessing late fees or filing an eviction—when a tenant cannot make payment because both the digital payment platform and the alternative provided by the landlord are unavailable.

The practical takeaway: Property owners should have a clearly established backup payment process before a problem occurs. Depending on the property and management system, that could mean accepting a check, certified funds or another reliable payment method.

Final Utility Bills Can Now Be Estimated in Certain Situations

Utility billing can become complicated when a tenant moves out before the property's actual utility bill arrives.

The new law allows landlords using certain submetered or apportioned utility billing arrangements to estimate a tenant's final utility charge when the actual utility bill has not yet been received.

The calculation must be based on the immediately preceding billing period and prorated for the number of applicable days through the tenant's move-out date. There are also limitations on additional fees that can be included.

This can make closing out a tenancy somewhat more manageable while still providing a defined method for calculating the tenant's responsibility.

Minor Children Generally Cannot Be Named in Eviction Actions

Beginning August 1, Minnesota residential landlords generally may not list a tenant's minor child as a defendant in an eviction complaint.

The primary exception is an unusual situation in which the minor is actually the sole person renting the unit. The law also provides potential damages for violations, making it particularly important that owners and managers filing eviction actions use updated procedures and forms.

Expedited Eviction Procedures Were Also Modified

Minnesota law already provides expedited eviction procedures for certain serious circumstances. The new legislation expands qualifying circumstances to include assaults against a landlord or the landlord's employees or contractors.

At the same time, the penalty for improperly seeking an expedited hearing has increased to as much as $750, reinforcing the importance of documenting the facts and determining whether a situation actually meets the statutory requirements before using the expedited process.

What Minnesota Rental Property Owners Should Do Now

Changes like these illustrate why property management increasingly involves more than collecting rent and coordinating maintenance. Lease administration, payment procedures, notices, documentation and compliance all need to evolve as state and local requirements change.

Owners should review their rent-payment procedures, move-out and utility-billing practices, and eviction documentation to make sure they reflect current Minnesota law. Owners of rental property in Minneapolis and other individual municipalities should also remember that local rental ordinances can create additional requirements beyond Minnesota state law.

For owners who would rather not continually track changing regulations, professional property management can provide an additional layer of oversight while also handling leasing, tenant communication, maintenance coordination and the day-to-day operation of the property.

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