The city of St. Paul has launched Rent Stabilization website. Beginning on May 1, 2022, the ordinance limits rent increases to 3% in any 12-month period even if there is a change of occupancy. It also directs the city to create a process for landlords to request an exception to the rent cap based on the right to a reasonable return on investment, and to consider seven factors when determining if an exception is justified. The city has created a process for landlords to request an exception to the limit on rent increases, offering two methods for landlords to make such requests. In either case, a landlord must demonstrate that an exception is needed to provide a reasonable return. The two methods, “self-certification” and “staff determination,” are described below.

• The self-certification process is intended only for requests for increases between 3% and 8%.
• Landlords may choose to use the staff-determination process for any request for an exception above the 3% cap. If they are seeking an increase for more than 8% , however, they must use this process. Staff will evaluate supporting documentation submitted using this process.
• All requests for an exception start with a landlord submitting the Rent Increase Exception Request form, which requires landlord and property information, the percent increase requested, for what specific portions of a building, and the factor(s) selected.
• All landlords are strongly encouraged to fill out the Maintenance of Net Operating Income worksheet before submitting an Exception Request to support the rationale for their request.
• When the Rent Increase Exception Request form is submitted, landlords are encouraged to send notice to any residential tenants who may be impacted.

REALTORS® are encouraged to become knowledgeable about the St. Paul Rent Stabilization ordinance to help drive compliance with the law and appropriately advise buyers, sellers, and renters.

More:

St. Paul Rent Stabilization

Text of the Ordinance

Review Final Rules

Form: Rent Increase Exception Request

Maintenance of Net Operating Income Worksheet

If you have further questions, please contact our Director of Government Affairs, Eric Myers: ericm@mplsrealtor.com