Rent Escrow
A legal process that allows tenants to pay rent to the court instead of the landlord when the landlord fails to make necessary repairs to the rental property.
Rent escrow is a legal remedy available to Minnesota tenants when their landlord fails to maintain the rental property in livable condition. Instead of paying rent to the landlord, the tenant deposits their rent with the court. The court then decides whether to reduce the rent, order repairs, or release the money back to the landlord or tenant.
To use rent escrow, you must first notify your landlord in writing about the problems and give them a reasonable time to fix them. If the landlord does not make repairs, you can file a rent escrow petition with the court under Minn. Stat. section 504B.385. You must be current on your rent or deposit it with the court when filing.
Why it matters: Rent escrow is a powerful tool for tenants facing serious habitability problems like broken heat, plumbing issues, or pest infestations. It is much safer than simply withholding rent, which can lead to an eviction filing against you.
Example: A tenant’s apartment has a persistent leak causing mold growth. The tenant notifies the landlord in writing and waits three weeks with no response. The tenant files a rent escrow petition and deposits the next month’s rent with the court. The judge orders the landlord to fix the leak within 10 days and reduces the tenant’s rent by 20% until repairs are made.
Uninhabitable rental conditions, landlord refusing to make repairs, housing court