St. Paul Landlords Raising Utility Costs To Circumvent Rent Control

“Some St. Paul landlords, facing soaring inflation and energy costs, are trying to get around the city’s new rent control law by charging tenants for utilities that used to be included in the rent,” writes Max Nesterak in the Minnesota Reformer. “It’s leading to rent increases of more than 10% for some renters in a city where landlords may only increase rent 3% a year following passage of a voter-approved ordinance that went into effect May 1,” which does not explicitly mention utilities. For some tenants, this has meant a rise in total housing costs of as much as 14 percent over the last year.

“However, the city’s rules don’t allow for landlords to circumvent the 3% cap on rent by shifting responsibility for utilities onto the tenant, according to St. Paul spokeswoman Suzanne Donovan. Nor can landlords rewrite a lease when it’s renewed to include these charges if they increase tenants’ costs by more than 3%.”

Tenant advocate and attorney Margaret Kaplan argues that “(Utilities) are part of the cost of living in the unit, and therefore, they should be included under what is considered a rent increase.” Organizations such as Kaplan’s Housing Justice Center are working with tenants and landlords to resolve disputes without going to court, but not all landlords have been receptive.