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.
If you have further questions, please contact our Director of Government Affairs, Eric Myers: firstname.lastname@example.org