Check the notice and your state's rule first; in Minnesota eviction actions, prior-period rent claimed in the complaint is paid before current-period rent.
Key takeaways
- In Minnesota eviction actions, apply payments under the quoted subdivision to prior-period rent claimed in the complaint before current-period rent claimed in the complaint, unless a court finds the prior claim waived, according to Minnesota Legislature Office of the Revisor of Statutes.
- In Maine, payment or written assurance through the general assistance program has the same effect as cash, according to Maine Legislature.
- A Wisconsin annotation reports that after a landlord accepted a holdover tenant's monthly rent, both parties were bound to a one-year tenancy on the expired lease's terms, according to Wisconsin State Legislature.
- Virginia allows a lease to set holdover damages up to 150 percent of the daily rent, according to Virginia Law.
- In Minnesota, a business record showing nonpayment rebuts the presumption of payment, according to Minnesota Legislature Office of the Revisor of Statutes.
Rent payment after notice: the short answer
When a tenant pays after a notice has been served, check which state's rule governs before you record the money. In Minnesota eviction actions, rental payments must first be applied to rent claimed as due in the complaint from prior rental periods before applying any payment toward rent claimed in the complaint for the current rental period, unless the court finds that under the circumstances the claim for rent from prior rental periods has been waived, according to Minnesota Legislature Office of the Revisor of Statutes. This rule concerns how a payment is allocated between rental periods. For prior-period rent claimed in the complaint under that subdivision, you should not credit the current month first. If a court later finds the prior-period claim waived, the application order changes, but until that finding is made, your record must show the reduction of the prior-period balance.
Do not assume this application order applies to every jurisdiction. The rule quoted here is specific to Minnesota eviction actions under the cited statute. Other states may have different rules for how payments are applied or whether acceptance of rent affects the notice. Check your local statutes before finalizing the entry. If you are managing properties in multiple states, maintain a separate posting rule for each jurisdiction. The Minnesota rule is a clear model for prioritizing prior-period rent claimed in a complaint, but it is not a universal standard. Your posting record must reflect the law governing the specific property and the specific legal action.
Step one: check the notice status and what was owed
Before posting any money, confirm the specific type of notice served and the exact date it was delivered. The posting rules depend on whether the tenancy is at will and the specific stage of the eviction process. For help with notice dates, see our guide to lease termination notice timing. In Maine, the legal framework for a tenancy at will is defined in Title 14, §6002: Tenancy at will; buildings on land of another. This statute provides the baseline for how money received during a notice period interacts with the termination of the lease.
Under Maine law, a termination based on a 30-day notice is not affected by receiving money, whether previously owed or for current use and occupation, until the date a writ of possession is issued against the tenant during the period of actual occupancy after the notice, according to Maine Legislature. So a payment taken while the 30-day notice is active does not by itself cancel the notice or stop the clock on the termination. The same statute provides for reinstatement in residential tenancies at will when the tenant pays all required amounts before the writ issues; see the Maine reinstatement entry in the reference table below. You must still track the notice date and the issuance of the writ of possession.
Steps two and three: apply the payment and log assistance
Step two: apply payment to prior-period rent first. When a payment arrives after a notice, the entry must reflect the order required by your jurisdiction. In Minnesota, that order covers rent claimed in the complaint: prior-period rent claimed comes before current-period rent claimed, subject to the court-waiver exception. If your property is in a different state, verify whether a similar ordering rule exists in your local statutes, as the Minnesota provision does not automatically apply elsewhere. When posting the entry, create separate line items for each prior period covered by the complaint. If the total payment exceeds the sum of prior-period arrears, the remainder applies to the current period. If the payment is less than the prior-period total, the current period remains unpaid. Do not assume that a partial payment clears the entire notice; the record must show exactly which periods are now satisfied and which remain outstanding.
Step three: record assistance payments. Some jurisdictions treat government assistance as equivalent to cash when calculating whether a tenant has cured a default. In Maine, payment or written assurance of payment through the general assistance program, as authorized by the State or a municipality pursuant to Title 22, chapter 1161, has the same effect as payment in cash, according to Maine Legislature. If a tenant provides a written assurance from such a program, log it with the same weight as a cash deposit. The entry should note the source of the funds and the date of the assurance. If actual payment follows, update the entry to reflect the cash received. Assistance can also bear on reinstatement; see the Maine reinstatement entry in the reference table below.
Illustrative example: one payment, two periods
This example uses round numbers for illustration only and applies the Minnesota order to rent claimed in a complaint. Suppose the complaint claims 60 dollars of rent from prior rental periods and 30 dollars for the current rental period. The tenant pays 70 dollars. The first 60 dollars goes to the prior periods, so they are fully satisfied. The remaining 10 dollars goes toward the current period, which leaves 20 dollars still owed for it. If the court instead found the prior-period claim waived, the allocation could differ, so record the court's finding before changing any entry.
Steps four and five: rent after termination and holdover charges
Step four: log rent after termination. When a tenant remains in the unit after the lease ends, the legal status changes. Under Wisconsin law, the effect of holding over after expiration of a lease is governed by specific statutory provisions, as noted in the Wisconsin State Legislature's section on "Effect of holding over after expiration of lease; removal of tenant" ( Wisconsin State Legislature). A Wisconsin annotation reports that, upon the landlord's acceptance of a holdover tenant's monthly rent payment, both parties were bound to a one-year tenancy on the same terms and conditions as set forth in the expired lease, according to Wisconsin State Legislature. The statute also addresses the "Creation of periodic tenancy by holding over" ( Wisconsin State Legislature). The terms of that tenancy are covered in the section titled "Terms of tenancy created by holding over" ( Wisconsin State Legislature). When posting this rent, note that acceptance of payment may carry that reported consequence. If you intend to end the tenancy rather than continue it, do not accept the payment without consulting your legal counsel.
Step five: set holdover charges. If the tenant stays without the landlord's consent, the landlord may be entitled to damages. In Virginia, the landlord may include in the rental agreement a reasonable liquidated damage penalty, not to exceed an amount equal to 150 percent of the daily rent, for each day the tenant remains in the dwelling unit after the termination date specified in the landlord's notice, according to Virginia Law. This cap applies specifically to the liquidated damage penalty included in the rental agreement, so check your lease clause checklist for that clause. If the landlord consents to the tenant's continued occupancy, § 55.1-1204 applies, according to Virginia Law. Therefore, before posting a holdover charge, determine whether the landlord consented to the continued occupancy. If no consent was given, use the reasonable penalty actually agreed in the lease, within the applicable ceiling. The same statute also limits a penalty in certain Department of Housing and Urban Development situations to an amount equal to the daily rent in the lease agreement, not 150 percent of it.
Rent payment after notice reference table
The table below lists the specific rules each publisher states regarding rent payments, holdover situations, and reinstatement procedures. Use this reference to verify which jurisdiction's rule applies to your current entry.
| Publisher | Rule on Payment After Notice | Source |
|---|---|---|
| Wisconsin State Legislature | Upon the landlord's acceptance of a holdover tenant's monthly rent payment, both parties were bound to a one-year tenancy, on the same terms and conditions as set forth in the expired lease. | Wisconsin State Legislature |
| Virginia Law | The landlord may include in the rental agreement a reasonable liquidated damage penalty, not to exceed an amount equal to 150 percent of the daily rent, for each day the tenant remains in the dwelling unit after the termination date specified in the landlord's notice. | Virginia Law |
| Maine Legislature | A termination based on a 30-day notice is not affected by receiving money, whether previously owed or for current use and occupation, until the date a writ of possession is issued against the tenant during the period of actual occupancy after the notice. | Maine Legislature |
| Maine Legislature | In all residential tenancies at will, if the tenant pays all rental arrears, all rent due as of the date of payment and any filing fees and service of process fees actually expended by the landlord before the issuance of the writ of possession, then the tenancy must be reinstated and no writ of possession may issue. | Maine Legislature |
| Maine Legislature | Payment or written assurance of payment through the general assistance program, as authorized by the State or a municipality pursuant to Title 22, chapter 1161, has the same effect as payment in cash. | Maine Legislature |
| Minnesota Legislature Office of the Revisor of Statutes | Rental payments under this subdivision must first be applied to rent claimed as due in the complaint from prior rental periods before applying any payment toward rent claimed in the complaint for the current rental period, unless the court finds that under the circumstances the claim for rent from prior rental periods has been waived. | Minnesota Legislature Office of the Revisor of Statutes |
| Minnesota Legislature Office of the Revisor of Statutes | A business record showing nonpayment rebuts the presumption of payment. | Minnesota Legislature Office of the Revisor of Statutes |
Check the jurisdiction of your property before applying these rules to your entries.
What to keep on file as the business record
Under Minnesota law, a presumption of payment is rebutted if the landlord produces a business record that shows that the tenant has not paid the rent, according to Minnesota Legislature Office of the Revisor of Statutes. Your payment entry should therefore document the specific transaction.
To satisfy this requirement, your business record should clearly show the date, amount, and status of the rent payment. If a notice has been served and a payment arrives, record the payment against the specific period it covers. If the payment does not cover the full amount due, note the remaining balance. This documentation serves as the evidence that rebuts the presumption of payment.
Next step you can take today
Action step: Review your current holdover tenants and check whether your rental agreements include the 150 percent liquidated damage penalty allowed in Virginia, then update your posting forms to reflect the specific statutory basis for each holdover charge.
FAQ: rent paid after a notice
How do I post a rent payment after a notice has been served?
In Minnesota eviction actions, apply the payment to prior-period rent claimed in the complaint before current-period rent, unless the court finds the prior claim waived. This rule concerns payments under the quoted Minnesota subdivision, so check your own state's statutes first.
Does accepting rent from a holdover tenant change the tenancy?
A Wisconsin annotation reports that after a landlord accepted a holdover tenant's monthly rent payment, both parties were bound to a one-year tenancy on the same terms and conditions as set forth in the expired lease, according to Wisconsin State Legislature. That is the outcome reported for the holdover situation described in that source.
Does government assistance count as rent paid after a notice?
In Maine, payment or written assurance of payment through the general assistance program has the same effect as payment in cash, according to Maine Legislature. This rule applies to programs authorized by the State or a municipality pursuant to Title 22, chapter 1161.
Does the Minnesota payment order apply to my property in another state?
No, the Minnesota rule applies to eviction actions in that jurisdiction. Other states may have different rules for applying payments, and you should not treat one jurisdiction's rule as the rule everywhere. Check the specific statutes for your property's location before posting the entry.
What can a Virginia landlord charge for holdover days?
A Virginia landlord may include a reasonable liquidated damage penalty in the rental agreement, capped at 150 percent of the daily rent for each holdover day, according to Virginia Law. This cap is specific to lease-based damages in Virginia, and the statute sets a lower limit in certain Department of Housing and Urban Development situations.