Minn. Stat. § 504B § 504B.173
APPLICANT SCREENING FEE.
Operative Text
Subdivision 1.Limitations. A landlord may not: (1) charge an applicant a screening fee when the landlord knows or should have known that no rental unit is available at that time or will be available within a reasonable future time; (2) collect or hold an applicant screening fee without giving the applicant a written receipt for the fee, which may be incorporated into the application form, upon request of the applicant; or (3) use, cash, or deposit an applicant screening fee until all prior applicants have either been screened and rejected, or offered the unit and declined to enter into a rental agreement. Subd. 2.Return of applicant screening fee. (a) The landlord must return the applicant screening fee if: (1) the applicant is rejected for any reason not listed in the disclosure required under subdivision 3; or (2) a prior applicant is offered the unit and agrees to enter into a rental agreement. (b) If the landlord does not perform a personal reference check or does not obtain a consumer credit report or tenant screening report, the landlord must return any amount of the applicant screening fee that is not used for those purposes. (c) The applicant screening fee may be returned by mail, may be destroyed upon the applicant's request if paid by check, or may be made available for the applicant to retrieve. Subd. 3.Disclosures to applicant. If a landlord accepts an applicant screening fee from a prospective tenant, the landlord must: (1) disclose in writing prior to accepting the applicant screening fee: (i) the name, address, and telephone number of the tenant screening service the landlord will use, unless the landlord does not use a tenant screening service; and (ii) the criteria on which the decision to rent to the prospective tenant will be based; and (2) notify the applicant within 14 days of rejecting a rental application, identifying the criteria the applicant failed to meet. Subd. 3a.Denial based on pending cases. No landlord may deny a rental application based on any of the following: (1) a pending eviction action; (2) any court file that is not public, has been expunged, or has been destroyed; or (3) any eviction action that has not resulted in a writ of recovery of premises and order to vacate, as that term is defined in section 504B.001, subdivision 15. Subd. 4.Remedies. (a) In addition to any other remedies, a landlord who violates this section is liable to the applicant for the applicant screening fee plus a civil penalty of up to $100, civil court filing costs, and reasonable attorney fees incurred to enforce this remedy. (b) A prospective tenant who provides materially false information on the application or omits material information requested is liable to the landlord for damages, plus a civil penalty of up to $500, civil court filing costs, and reasonable attorney fees.
Minn. Stat. § 504B.173 governs how landlords in Minnesota may collect and use applicant screening fees. The law restricts when a fee can be charged, requires written receipts on request, mandates specific written disclosures before the fee is accepted, and sets rules for when unused or inapplicable fees must be returned. It also prohibits landlords from denying applications based on pending eviction actions or non-public court records, and establishes civil penalties for violations by either landlords or applicants who provide false information.
Plain English — not legal advice.
Under Minn. Stat. § 504B.173, compliant landlords generally collect screening fees only when a unit is actually available or will be available within a reasonable time, and they provide written receipts upon request. Before accepting any fee, operators typically furnish written disclosures identifying the screening service used and the criteria on which rental decisions will be based, and they notify rejected applicants within 14 days of the specific criteria not met. Landlords also track application order carefully, holding fees unused until prior applicants have been screened or have declined, and promptly returning fees when a prior applicant accepts the unit or when a rejection is based on criteria not listed in the required disclosure.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Minn. Stat. § 504B.173 gives prospective tenants in Minnesota the right to a written receipt for any screening fee paid, written disclosure of the screening criteria and service used before the fee is collected, and a refund of the fee in certain circumstances—such as when a prior applicant takes the unit or when rejection is based on undisclosed criteria. The law also prohibits a landlord from denying an application solely because of a pending eviction action or a court record that is non-public or expunged. If a landlord violates these requirements, a tenant may be entitled to recover the screening fee plus a civil penalty of up to $100, court filing costs, and reasonable attorney fees; tenant-rights organizations and legal aid offices can help explain the general process for pursuing these remedies.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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