Minnesota Landlords: New Utility Billing Laws Took Effect Jan. 1, 2025
Avoid fines, lawsuits, and tenant disputes by updating your utility billing practices now.
Minnesota has passed major reforms to how landlords in shared-metered buildings may bill tenants for utilities. Starting January 1, 2025, the new laws require strict compliance and carry steep penalties for violations.
What’s Changed:
Electricity billing: Landlords can no longer apportion electric bills. If units don’t have individual meters, electricity must be included in rent or sub metered.
Gas and water billing: If you apportion charges, you must use the state-mandated formulas (gas by square footage, water/sewer by occupants). No more “creative” billing methods.
Fee limits: Administrative billing charges are capped at $8 per billing period and late fees at $5 per month total. Sub-meter installation or maintenance costs cannot be passed on to tenants.
Billing frequency: Bills must match the utility’s billing cycle (typically monthly) with itemized statements that show readings, rates, credits, and charges.
Tenant protections: Tenants have the right to payment plans, to see actual utility bills, and to file complaints with the Public Utilities Commission (PUC). Landlords cannot disconnect utility service for nonpayment.
Penalties: The PUC can fine landlords $100–$1,000 per violation. Each illegal bill could count separately, and past cases have cost landlords millions.
Why This Matters
Failure to comply can mean fines, legal actions, or blocked evictions. The Attorney General’s office has already pursued large landlords for illegal billing, with judgments exceeding $5 million. Don’t risk being next.
What You Should Do Now
Audit your billing practices and stop electricity apportionment.
Verify sub-meter accuracy and compliance.
Update lease forms with the required utility disclosure language.
Train staff and billing agents on the new requirements so you aren’t liable and don’t face fines.