MINNESOTA RESIDENTIAL LEASE – LATE FEE ADDENDUM

(Governing Law: Minnesota)

[// GUIDANCE: This Addendum is intended for use with a pre-existing Minnesota residential lease agreement (“Master Lease”). It may be attached at execution of the Master Lease or added by written amendment. Replace all bracketed placeholders before execution.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Default & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

1. Title. Late Fee Addendum to Residential Lease Agreement (“Addendum”).
2. Parties.
   a. Landlord: [LEGAL NAME], [state of organization], with principal address at [ADDRESS] (“Landlord”).
   b. Tenant: [LEGAL NAME(S)] residing at the Premises defined below (“Tenant”).
3. Master Lease. Landlord and Tenant are parties to that certain Residential Lease Agreement dated [EFFECTIVE DATE OF MASTER LEASE] (the “Master Lease”) covering the residential real property located at [STREET ADDRESS, CITY, MN ZIP] (the “Premises”).
4. Consideration. In consideration of the mutual covenants herein and in the Master Lease, and other good and valuable consideration, the sufficiency of which is acknowledged, the parties agree as follows.
5. Effective Date. This Addendum is effective as of [EFFECTIVE DATE] (“Effective Date”).
6. Jurisdiction Specification. This Addendum is governed by the laws of the State of Minnesota, including but not limited to Minn. Stat. § 504B.177.

II. DEFINITIONS

For purposes of this Addendum (capitalized terms not defined herein have the meanings given in the Master Lease):

1. “Base Rent” – The monthly rent due under the Master Lease, exclusive of utilities and other charges.
2. “Due Date” – The calendar date each calendar month on which Base Rent is contractually due under the Master Lease.
3. “Grace Period” – The number of consecutive calendar days after the Due Date during which Tenant may pay Base Rent without incurring a Late Fee, as set forth in Section III.3.
4. “Late Fee” – The fee assessed by Landlord for Tenant’s failure to deliver Base Rent in full on or before expiration of the Grace Period.
5. “Overdue Rent” – The unpaid portion of Base Rent outstanding after the Grace Period expires.

III. OPERATIVE PROVISIONS

1. Incorporation. This Addendum is incorporated into and made part of the Master Lease. In the event of a conflict, this Addendum controls as to Late Fees.
2. Written Requirement. Pursuant to Minn. Stat. § 504B.177, no Late Fee is enforceable unless it is in a written lease signed by the Tenant. This Addendum satisfies that requirement.
3. Grace Period. Tenant shall be entitled to a Grace Period of [NUMBER] days following each Due Date. The Grace Period commences the day after the Due Date and ends at 11:59 p.m. Central Time on the last day of the Grace Period.
   [// GUIDANCE: Minnesota statewide law does not mandate a specific grace period, but many Minnesota municipalities (e.g., Minneapolis, St. Paul) impose local grace-period ordinances. Insert a number that meets or exceeds any applicable local requirement.]
4. Imposition of Late Fee. If any portion of Base Rent remains unpaid after the Grace Period, Landlord may assess a Late Fee on the unpaid amount.
5. Calculation. The Late Fee shall be the lesser of:
   a. [FIXED DOLLAR AMOUNT]; or
   b. Eight percent (8%) of Overdue Rent.
   In no event shall the Late Fee exceed the maximum permitted by Minn. Stat. § 504B.177.
6. Non-Cumulative; Single Assessment. The Late Fee is assessed once per rental period and does not compound. Interest on Late Fees is prohibited unless expressly permitted by Minnesota law.
7. Application of Payments. Unless prohibited by law, payments received shall be applied first to outstanding Late Fees, then to Overdue Rent, and finally to current Base Rent.
8. Notice of Assessment. Landlord shall provide Tenant written notice of any Late Fee assessment specifying (i) the amount of Overdue Rent, (ii) the Late Fee amount, and (iii) the date assessed. Notice may be delivered in any manner allowed under the Master Lease.
   [// GUIDANCE: Minnesota law now requires 14-day written pre-eviction notice for non-payment. While not a prerequisite to charging a Late Fee, align timing of notices to avoid procedural disputes.]

IV. REPRESENTATIONS & WARRANTIES

1. Mutual Authority. Each party represents it has full right, power, and authority to execute this Addendum and perform hereunder.
2. Compliance Representation. Landlord represents that the Late Fee structure complies with Minn. Stat. § 504B.177 and all applicable municipal ordinances as of the Effective Date.
3. No Conflict. Tenant represents that execution of this Addendum does not violate any other agreement to which Tenant is a party.
4. Survival. The representations and warranties in this Section survive termination of the Master Lease to the extent relating to unpaid Late Fees.

V. COVENANTS & RESTRICTIONS

1. Tenant Covenant. Tenant shall timely pay Base Rent in accordance with the Master Lease and this Addendum.
2. Landlord Covenant. Landlord shall not assess or collect Late Fees in excess of the statutory cap or prior to expiration of the Grace Period.
3. Records. Landlord shall maintain accurate records of all Late Fees assessed and paid and provide Tenant an accounting upon written request not more than once per calendar year.

VI. DEFAULT & REMEDIES

1. Events of Default. Tenant’s failure to pay (i) Base Rent or (ii) any Late Fee within [NUMBER] days after written notice of non-payment constitutes a “Monetary Default.”
2. Cure. Tenant may cure a Monetary Default by paying all outstanding sums within the cure period.
3. Graduated Remedies. Upon a Monetary Default:
   a. Acceleration. Landlord may declare all unpaid Base Rent for the remainder of the lease term immediately due and payable to the extent permitted by law.
   b. Statutory Remedies. Landlord may pursue eviction and recover possession in Minnesota Housing Court after satisfying any statutory pre-eviction notice requirement.
   c. Attorneys’ Fees. The prevailing party in any action to enforce this Addendum is entitled to reasonable attorneys’ fees and costs as allowed by Minn. Stat. § 504B.172.

VII. RISK ALLOCATION

Indemnification. The parties agree no separate indemnification obligations arise under this Addendum. Liability is limited to the extent—and only to the extent—explicitly permitted by applicable Minnesota statutory limits.

VIII. DISPUTE RESOLUTION

1. Governing Law. This Addendum is governed by Minnesota law without regard to conflict-of-law rules.
2. Forum Selection. Any action arising out of this Addendum shall be commenced exclusively in the state district court housing division having jurisdiction over the Premises.
3. Arbitration. Arbitration is expressly excluded.
4. Jury Trial. The parties acknowledge the constitutional right to a jury trial and do not waive that right.
5. Injunctive Relief. Nothing herein limits Landlord’s statutory right to seek eviction or other equitable relief.

IX. GENERAL PROVISIONS

1. Amendment & Waiver. No amendment or waiver is effective unless in writing and signed by both parties.
2. Assignment. Tenant may not assign rights or delegate obligations under this Addendum without Landlord’s prior written consent, except as otherwise required by law.
3. Successors & Assigns. This Addendum binds and benefits the parties and their respective successors and permitted assigns.
4. Severability. If any provision is held invalid, the remaining provisions remain enforceable, and the invalid provision will be reformed to the minimum extent necessary to render it valid and enforceable.
5. Integration. This Addendum and the Master Lease constitute the entire agreement on Late Fees, superseding all prior negotiations or agreements on that subject.
6. Counterparts; Electronic Signatures. This Addendum may be executed in counterparts, each of which is deemed an original, and signatures transmitted electronically shall be deemed originals.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties have executed this Addendum as of the Effective Date.

[Notary Acknowledgment, if required]

[// GUIDANCE:
1. Confirm local grace-period ordinances and insert an appropriate number in Section III.3.
2. Insert concrete cure-period length in Section VI.1 consistent with the Master Lease.
3. Review attorneys’ fee clause against Minn. Stat. § 504B.172 and any municipal or court restrictions.
4. Attach this Addendum to the Master Lease and have all existing parties sign.
]