SF 1671: The End of the “No-Cause” Era in Minnesota

Minnesota is flipping the script on rental properties. Senate File 1671 (and HF 997) effectively ends “no-cause” evictions and non-renewals. If passed into law as expected in late 2026, landlords will be required to prove one of ten specific “just causes” to terminate a tenancy or refuse a lease renewal under the Minnesota Just Cause Eviction Law 2026.

As a Realtor who started in the trenches—literally, as a drain cleaner and plumber—I know that a property’s value isn’t just in its walls; it’s in the stability of its systems and its occupants. This law directly impacts the Zwack Metabolic Score of your investment. Whether you are Investing in Rochester MN or managing a multi-family in Anoka, the rules of the game are changing.

This significant legislation, known as the Minnesota Just Cause Eviction Law 2026, fundamentally changes the landscape for landlords and tenants alike.

1. What is SF 1671 and Why Now?

Senate File 1671 aims to add a new section to Minnesota Statutes Chapter 504B. The goal is simple: to prevent arbitrary displacement by requiring landlords to provide a valid, legal reason for ending a tenancy.

This isn’t happening in a vacuum. It is a direct response to the economic fallout of Operation Metro Surge—the federal enforcement action that hit the Twin Cities in late 2025. With rent debt spiking, lawmakers are moving to ensure that the “Fiscal Reset” we are seeing in places like Anoka doesn’t lead to a mass wave of homelessness.

2. The 10 “Just Cause” Grounds for Termination

Under the proposed Minnesota Just Cause Eviction Law 2026, you can no longer simply wait for a lease to end and say “no thanks” to a renewal. You need one of these grounds:

Fault-Based Grounds

Nonpayment of Rent: Still a valid reason, but requires specific notice periods.
Repeated Late Rent: Defined as 5+ times in 12 months, provided a written warning was given each time.
Material Breach of Lease: Requires a “Right to Cure” period where the tenant can fix the issue.
Illegal Activity: Documented criminal behavior on the premises.

No-Fault Grounds

Owner Occupancy: You or a family member intend to move in as a primary residence.
Major Rehabilitation: Extensive renovations that make the unit uninhabitable.
Compliance with Gov Orders: Condemnation or safety orders.

3. The Relocation Fee: The High Cost of Market Withdrawal

This is the “sting” in the tail for investors. If you want to withdraw a property from the rental market—to sell it as a single-family home or convert it to a condo—SF 1671 imposes heavy requirements:

180 Days’ Written Notice: No more quick exits.
Relocation Fee: You must pay the tenant one month’s rent as a relocation fee 30 days before they move.
5-Year Re-rent Ban: If you pull the unit, you generally cannot re-rent it for five years without facing severe penalties.

If you are currently looking at North Metro Starter Homes with plans to “fix and flip” tenanted properties, your Mortgage Approval In Minnesota needs to factor in these potential holding costs.

4. Operation Metro Surge: The Economic Catalyst

To understand the political momentum, you have to understand the numbers. Between December 2025 and February 2026, Operation Metro Surge created a “protection crisis” in Minnesota.

$203 Million Monthly Hit: The economic impact on Minneapolis alone.
Rent Debt Spike: An additional $27–$51 million in rent debt was created in just two months.
Advocacy Push: Tenant advocates argue that without just-cause, landlords would use non-renewals to clear out families struggling with “Surge-related” lost wages.

5. St. Paul vs. Minneapolis: A Tale of Two Cities

Cities are already reacting to the void of state-wide law.

St. Paul: Passed Ordinance 26-18, extending pre-eviction notice to 60 days through the end of 2026.
Minneapolis: Mayor Frey vetoed a similar measure, preferring a $6.8 million emergency rental aid injection.

This inconsistency is exactly why the state-wide Minnesota Just Cause Eviction Law 2026 is likely to pass—the industry and advocates both want a “unified playbook.”

6. Impact on the Zwack Metabolic Score (ZMS)

Every property I evaluate gets a Zwack Metabolic Score. Here is how SF 1671 changes the math:

Stable Tenancy (+Score): If a property has a 5-year tenant with a clean history, the property scores higher. Predictability is the new gold.
Short-Term “Flip” Potential (-Score): If the property requires the removal of tenants for a value-add renovation, the ZMS drops because of the 180-day delay and relocation fee risk.
Infrastructure Risk: I’ve seen 1970s ramblers where one bad tenant let pipes freeze. Under just-cause, if you can’t quickly remove a “negligent” tenant, the infrastructure risk (and ZMS) suffers.

7. Strategy for Buyers, Sellers, and Landlords

Navigating the Minnesota Just Cause Eviction Law 2026 requires a fundamental shift in how you manage your real estate portfolio. The “old way” of managing by intuition or handshake deals is a legal liability in this new environment.

Sellers: You need to treat your rent rolls like a verified asset. Highlight long-term, stable tenancies in your marketing materials. In 2026, a “turn-key” investment isn’t just about fresh paint; it’s about having a tenant base that won’t trigger a 180-day market withdrawal delay or relocation fees.
Buyers: Your due diligence must extend beyond the physical structure. You need to screen potential tenants—and review existing leases—like your retirement depends on it. Don’t inherit a “no-fault” eviction problem that you can’t legally solve without a massive payout. Check our Checklist For Inspecting Homes In Minnesota to ensure the physical side matches the financial.
The 1% Advantage: As a specialist in Expert Real Estate Representation, I offer a full Zwack Metabolic Score audit for every rental property I represent. Plus, when you buy with me, I provide a 1% listing fee to help you retain more of your equity. This is critical as new compliance costs like relocation fees eat into your margins.

The bottom line is that while SF 1671 creates new hurdles, it also rewards “Realist” investors who prioritize structural health and tenant stability. If you’re feeling the pinch of rising Interest Rates vs. Buying Power in Anoka County, these regulatory shifts make it even more important to have a partner who understands the “Metabolic” health of your property. For a wider view of how these policies fit into the current year, dive into our Minnesota Real Estate Market Trends 2026 or start your journey with our MN First Time Home Buyer Loan Guide to see how to start building your portfolio the right way.

8. Reputable Resources for Minnesota Landlords

Stay ahead of the curve with these official resources:

MN Legislature: Track SF 1671 progress at revisor.mn.gov.
Minnesota Multi Housing Association (MMHA): Get the landlord’s perspective at mmha.com.
HOME Line: Tenant rights and legal advice at homelinemn.org.
MN Dept of Commerce: Real estate license and policy updates at mn.gov/commerce.
Minnesota Housing Finance Agency: Relocation filing data at mnhousing.gov.

Ready to Audit Your Investment?

The era of “blind date” investing is over. I’m Jacob Zwack, and as part of The Agent Referral Network – The Minnesota Real Estate Team, I’ve helped clients navigate everything from Coon Rapids Infrastructure to St. Augusta history.

Mention my 1% listing fee and let’s run a full Zwack Metabolic Score on your next rental project.

Contact Jacob Zwack:

Cell: 763-250-3146
Email: jacob@mnrealestateteam.com
Web: mnbyjz.com

Disclaimer: Jacob Zwack is a licensed REALTOR® with The Agent Referral Network – The Minnesota Real Estate Team. This article is for educational purposes and does not constitute legal advice. SF 1671 is proposed legislation as of early 2026.

7 Vital Truths: Minnesota Just Cause Eviction Law 2026 (SF 1671)