Minnesota Landlord to Pay $5M Over Illegal Charges

Minnesota Landlord to Pay $5M Over Illegal Charges

Introduction

More than 4,000 renters across Minnesota are set to receive financial relief following a $5 million settlement with Investment Property Group (IPG).

The agreement, announced by Attorney General Keith Ellison, resolves allegations that the property management company overcharged tenants and unlawfully withheld security deposits.

Direct Payments and Debt Forgiveness

As part of the settlement, nearly $2 million will be returned directly to tenants who were impacted by IPG’s practices. In addition, the company is required to forgive more than $3 million in unpaid rent and utility debts. IPG must also notify credit reporting agencies and tenant screening companies that these debts have been satisfied, ensuring tenants’ records are cleared.

Allegations of Overcharging and Eviction Threats

The lawsuit accused IPG of imposing unexpected and inflated utility fees, sometimes exceeding $200 per month. While Minnesota law allows landlords to bill tenants for certain utilities separately from rent, IPG allegedly failed to follow regulations. The company was also accused of threatening or initiating evictions over unpaid utility bills.

Restrictions on Future Practices

Under the terms of the settlement, IPG can no longer charge tenants separately for gas or gas-related utilities. The company is also prohibited from filing or threatening eviction cases tied to unpaid utility charges.

Rent Credits for Current Residents

In addition to direct payments, approximately 650 current tenants will receive a $350 rent credit. This credit applies to residents at specific properties, including Aldrich Avenue Apartments, Bolero Flats, Cambridge Towers, Central Park Manor, Creek Point, Greenway, Knollwood Towers East and West, Lyndy Apartments, Maven Apartments, and Wayzata Woods.

Next Steps for Tenants

The attorney general’s office confirmed it will contact eligible tenants in the coming months with details about their compensation or rent credits.