HF4443 (Legislative Session 94 (2025-2026))
Requirements for prorated rent to include an incomplete first month of rent modified.
AI Generated Summary
Purpose
This bill changes how rent is calculated when a residential lease does not cover a full month. It aims to ensure tenants only pay for the actual days they occupy a unit, and to reduce disputes over partial-month charges. It applies to all leases, including those that require the first or last month’s rent to be paid in advance.
Main Provisions
- Prorated rent for incomplete months: If a lease ends on a date before the last day of the final month, or if a lease begins after the first day of a 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 for the actual number of days of occupancy.
- Applies to all leases: This prorated rent requirement applies to all residential leases, including those that require paying the first or last month in advance.
- Prohibition on waivers: Any attempt by a landlord and tenant to contract around this requirement, or any clause that tries to waive it, is void and unenforceable.
- Calculation method: Prorated rent must be calculated using the actual number of calendar days in the incomplete month (the month in which the lease expires).
- Tenant remedies protection: Any contract clause that limits tenant remedies for this provision, including arbitration or prohibiting a class action, is void and unenforceable.
Significant Changes to Existing Law
- Establishes a clear, mandatory method for prorating rent for incomplete months based on actual occupancy days.
- Expands prorated rent rules to apply to all residential leases, even those that previously paid first or last month in advance.
- Invalidates any contract waivers of this provision and any lease terms that would limit tenants’ remedies (e.g., arbitration or class-action bans).
Practical Implications
- Tenants: Likely pay less or more accurately reflect partial-month occupancy, reducing disputes over partial-month charges.
- Landlords: Will need to adjust rent calculations for leases that end mid-month or begin mid-month and ensure lease language complies with the new requirements.
- Legal/Compliance: Leases and notices must avoid waivers or remedies restrictions related to this provision to remain enforceable.
Relevant terms prorated rent; average daily rate; calendar days; incomplete month; first month; final month; lease; Minnesota Statutes 504B.116; waiver; void and unenforceable; arbitration; class action; tenant remedies
Bill text versions
- Introduction PDF PDF file
Upcoming committee meetings
- Housing Finance and Policy on: March 25, 2026 15:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 18, 2026 | House | Action | Introduction and first reading, referred to | Housing Finance and Policy |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minnesota Statutes 2024 section 504B.116 to require prorated rent for an incomplete first month or final month of a residential lease. It mandates calculating prorated rent at the average daily rate for the month and applies to all leases, including those where the first or last month is paid in advance. The bill also voids any contract waivers of this section and prohibits contract clauses that limit tenant remedies for violations (e.g., arbitration or class actions).",
"modified": [
"Prorated rent must be calculated using the actual number of calendar days for the calendar month in which the lease expires that is incomplete.",
"Prorated rent for the final month or incomplete first month is calculated at the average daily rate for that month.",
"Any contract clause that attempts to waive this section is void and unenforceable.",
"Clauses limiting tenant remedies (such as arbitration or class actions) for violations of this section are void and unenforceable."
]
},
"citation": "504B.116",
"subdivision": ""
}
]Progress through the legislative process
In Committee