Requirements of prorated rent modification to include an incomplete first month of rent

2025-2026 Regular Session Introduced by Doron Clark

Prorated rent must be based on actual days of occupancy for incomplete months, and waivers limiting tenant remedies for prorated rent violations are void.

Referred to Housing and Homelessness Prevention

#housingandhousingfinanceagency #landlordsandtenants

Summary of SF 5307 (2025-2026) – Prorated Rent Modification for Incomplete First Month

Purpose and intent

SF 5307 seeks to modify Minnesota’s prorated rent requirements to ensure tenants are charged only for the actual days of occupancy in the first or final month of a residential lease when those months are incomplete. The bill aims to strengthen protections for tenants by clarifying how prorated rent is calculated and by voiding lease clauses that attempt to limit tenant remedies for prorated rent violations.

Key provisions and changes

Prorated rent calculation (new focus):
The bill maintains that when a lease ends before the last day of the final month, or begins after the first day of the month, the rent for the applicable month must be prorated at the average daily rate for that month. Tenants should pay only for the actual days they are allowed occupancy.

Effective scope of calculation (clarified):
Proration is based on the actual number of calendar days in the month in which occupancy is incomplete (i.e., the month that is not fully used).

Prohibition on waivers and restricted remedies (new protections):
Any contract clause that limits tenant remedies for prorated rent violations is void and unenforceable. This includes clauses that would require arbitration or prohibit class actions for such violations.

Effective date and applicability:
The measure becomes effective the day after final enactment and applies to leases entered into on or after that date.

Who is affected

Tenants in residential leases:
Tenants will benefit from a clearer, standardized method to compute prorated rent for incomplete first or final months, ensuring they are not overcharged.

Landlords and property managers:
Landlords must adopt prorated rent calculations using the actual days in the relevant month and ensure lease terms do not improperly restrict tenant remedies for prorated rent issues.

Legal enforcement landscape:
Lease provisions that attempt to waive or limit tenant recourse for prorated rent violations are rendered unenforceable.

Procedural and timeline aspects

Status: Introduced and referred to the Housing and Homelessness Prevention committee (May 17, 2026).

Sponsor: Co-sponsor Doron Clark.

Effective date: The day after enactment, with applicability to leases entered into on or after that date.

Practical implications

Tenants will have a consistent, fair method for calculating prorated rent tied to the actual number of days of occupancy.

Landlords must review and revise lease language to remove unenforceable waiver provisions and to align with the new calculation standard.

Practically, this may reduce disputes over first/final month rent and provide a clearer path for remedies in case of noncompliance.