Short answer: Minnesota late fee laws cap a late fee at 8% of the overdue rent payment, and a landlord can charge one only if you agreed in writing and the agreement says when the fee kicks in, under Minn. Stat. § 504B.177(a). If your rent is partly paid by a government housing program, the 8% is figured only on your share.
Section 504B.177 packs more into three paragraphs than most states’ late-fee laws. It closes the “early payment discount” loophole, refuses to treat a late fee as interest, and protects voucher holders from fees calculated on rent they do not pay. It also connects to Minnesota’s 14-day pre-filing notice, which must break out late fees separately from rent.
Minnesota late fee laws: the key rules
| Rule | Minnesota | Statute |
|---|---|---|
| Maximum late fee | 8% of the overdue rent payment | § 504B.177(a) |
| Written agreement required | Yes, and it must say when the fee is imposed | § 504B.177(a) |
| Statutory grace period | None; no fee before the due date | § 504B.177(a) |
| “Discount” due dates | Do not count as the due date | § 504B.177(a) |
| Rent assistance (HAP contract) | Fee only on the tenant’s portion | § 504B.177(c) |
| Pre-filing notice | 14 days; must itemize rent, late fees and other charges | § 504B.321, subd. 1a |
| Redemption after filing | Rent in arrears, interest, costs, attorney’s fee up to $5 | § 504B.291, subd. 1 |
The 8% cap and the written agreement
Under § 504B.177(a), a landlord of a residential building “may not charge a late fee if the rent is paid after the due date, unless the tenant and landlord have agreed in writing that a late fee may be imposed.” The agreement “must specify when the late fee will be imposed,” and “in no case may the late fee exceed eight percent of the overdue rent payment.”
Three takeaways:
- No writing, no fee. An oral lease, or a written lease that never mentions a late fee, leaves the landlord with no right to charge one.
- The trigger must be stated. A clause that says only “late fees apply” without saying when does not meet the requirement that the agreement specify when the fee is imposed.
- 8% of what’s overdue. The base is “the overdue rent payment,” so if you paid part of the rent on time, the cap applies to the unpaid remainder.
The statute says “in no case” may the fee exceed 8%, so a daily fee that keeps adding up must stop at 8% of the overdue payment. Minnesota does not set a waiting period, so if the lease makes rent late on the 2nd, a capped fee can apply then.
The discount-date loophole is closed
Some landlords set a high “rent” and offer a discount for paying by the 1st, which works like a disguised late fee. Section 504B.177(a) says the “due date” does not include a date, earlier than the date in the lease, by which the tenant earns a discount if rent is paid. Your due date for late-fee purposes is the real lease due date, not the discount deadline.
A late fee is not interest
The statute adds a sentence that matters later: “Any late fee charged or collected is not considered to be either interest or liquidated damages.” Keep that in mind for the eviction section below.
Voucher holders and subsidized housing
Minnesota gives specific protection to tenants whose rent is partly paid by a government program. Under § 504B.177(c), a landlord who has a housing assistance payments contract with a federal, state or local government must calculate and assess any late fee “only on the portion of rent payable by the tenant.” The definition includes the federal programs at 42 U.S.C. 1437f (which includes Housing Choice Vouchers) and 1485, plus any program where the landlord receives rent from both the tenant and the government.
A separate rule in § 504B.177(b) lets a landlord follow a federal late-fee schedule if a federal statute, regulation or handbook for a federally subsidized tenancy conflicts with paragraph (a). If you live in federally assisted housing and your fee schedule differs from the 8% rule, ask the landlord which federal provision it relies on.
Worked example: a Mankato voucher holder
Teresa rents a two-bedroom in Mankato. The contract rent is $1,300; her voucher pays $850, and her share is $450, due on the 1st. Her written lease says a late fee of 10% of monthly rent applies after the 3rd. In October her paycheck is delayed and she pays her $450 on the 7th.
The landlord bills $130, which is 10% of the full $1,300. Under § 504B.177(c), the fee may be calculated only on Teresa’s $450 portion, and § 504B.177(a) caps it at 8%, so the most she can owe is $36. She pays the $450 plus $36 and sends a note citing both paragraphs. If her landlord later serves a 14-day notice, it must itemize late fees separately under § 504B.321, subd. 1a, which makes an overcharge easy to spot.
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Late fees and the eviction timeline
Minnesota’s eviction rules treat late fees differently at two stages.
Before filing: the 14-day notice
Before suing for nonpayment of rent “or other unpaid financial obligation,” a landlord must give written notice under § 504B.321, subd. 1a. It must state the total amount due and “a specific accounting of the amount of the total due from unpaid rent, late fees, and other charges under the lease,” and tell you the landlord can file “if you do not pay the total amount due or move out within 14 days.” The court must dismiss a case filed without this notice. Because the notice lists late fees in the total, check that figure against the 8% cap before you pay it.
After filing: redemption
Once a nonpayment case is filed, § 504B.291, subd. 1(a) lets you redeem the tenancy “at any time before possession has been delivered” by paying or bringing to court “the amount of the rent that is in arrears, with interest, costs of the action, and an attorney’s fee not to exceed $5,” and performing the lease’s other covenants. Late fees are not on that list, and § 504B.177(a) says a late fee is not interest. A written guarantee from a government agency or a qualifying nonprofit rental-assistance program also counts.
If you can pay the back rent but not the interest, costs and fees, subd. 1(b) lets the court allow you to pay those into court during any stay of the order to vacate.
Frequently Asked Questions
Can a Minnesota landlord charge a flat $100 late fee?
Only if $100 is no more than 8% of the overdue rent and your written lease says when it applies. On $1,000 of overdue rent, the cap is $80, so a $100 flat fee would exceed § 504B.177(a).
My lease offers a discount for paying early. Is the higher rent a late fee?
Section 504B.177(a) says an earlier discount date is not the “due date.” Late fees can only start after the actual lease due date, and the 8% cap still applies.
I have a Section 8 voucher. How is my late fee calculated?
Under § 504B.177(c), only on your share of the rent, not the housing authority’s payment. A fee figured on the full contract rent is improper.
Do I have to pay late fees to stop an eviction after it’s filed?
The redemption statute, § 504B.291, lists rent in arrears, interest, costs of the action and an attorney’s fee up to $5. Late fees are not listed, and § 504B.177 says they are not interest. Before filing, the 14-day notice does include late fees in the total amount due.
Can a landlord add a late fee to a lease that never had one?
Not without your written agreement. Section 504B.177(a) bars a late fee unless both of you agreed in writing, and the writing states when it applies.
What to do about an overcharge
Run the numbers through our late fee checker, then send your landlord a written request citing § 504B.177 to correct the ledger. If you receive a 14-day notice, compare its itemized late fees to the cap before paying. For deposit questions, see Minnesota security deposit law; Minneapolis renters can also check Minneapolis tenant rights. Compare other states on the late fee laws by state hub.
This guide is general information, not legal advice. LawHelpMN, the site named in Minnesota’s required eviction notice, and LSC’s get legal help finder can connect you with free legal aid.