Minn. Stat. § 504B.161 requires residential landlords to maintain the tenant’s home up to local codes and in reasonable repair. While the statute does not allow the landlord to ultimately avoid these duties, subdivision 2 of the statute allows the landlord and tenant to agree that the tenant will perform specified duties in return for adequate consideration – sort of subcontracting these repairs back to the tenant in return for comparable compensation.
Some residential landlords have tried to use subdivision 2 to shift repair of appliances and even of sewer lines to the tenant. These landlords insert a clause in the lease requiring the tenant to purchase CenterPoint Energy’s Service Plus, a plan that allows the homeowner or renter to get “free” appliance repair – in return for the monthly Service Plus fee CenterPoint will repair broken appliances without further cost. One of the main examples is Steven Meldahl, a major landlord in north Minneapolis.
Meldahl is currently the defendant in a lawsuit filed by the Minnesota Attorney General. The lawsuit alleges that a variety of maneuvers by Meldahl, including his Service-Plus clause, are violations of the Minnesota’s Prevention of Consumer Fraud Act (“MPCFA”). This essay examines a slightly different question – whether Meldahl’s Service Plus clause is ultimately enforceable (as opposed to whether it violates the MPCFA by fooling tenants).
I conclude that is very unlikely that Meldahl’s clauses are enforceable. However it is possible for a careful, law-respectful landlord to incorporate an enforceable Service Plus clause in her lease.
The essay is available in PDF and in Word. The Word version includes links to cited materials. Some of the materials, including the original 1971 legislative history of Minn. Stat. § 504B.161, are also available here.
The three 6/5/21 updates are: [1] A few grammatical mistakes have been corrected. [2] I reviewed the last two items at the Gale Library and revised the compilation legislative history of 1971 Minn. Laws ch. 219 very slightly. Nothing new of material interest was found. See footnote 19 in the updated essay. [3] In response to a comment from a perceptive reader, I’ve revised the liberal-canon discussion. See pp. 8-9 of the updated essay.