Minnesota security deposit rules
How Minnesota deposit returns generally work
Minnesota Statutes § 504B.178 generally requires a landlord to return a residential security deposit with 1% simple interest, or give a written statement showing the specific reason for withholding any portion, within three weeks after the tenancy ends and after receiving the tenant’s mailing address or delivery instructions. Deductions are limited to unpaid rent or other amounts due and to restoring the unit to its move-in condition, ordinary wear and tear excepted, and the statute describes a penalty equal to the amount withheld plus interest, and up to $500 in punitive damages for bad-faith retention, that a court may consider.
Minn. Stat. § 504B.178, subd. 3 generally requires return of the deposit with interest, or a written statement of the specific reason for withholding, within three weeks after the tenancy ends and after the landlord receives the tenant’s mailing address (five days after a condemnation-related move-out).
Withholding is limited to amounts reasonably necessary for unpaid rent or other funds due and to restore the unit to its move-in condition, ordinary wear and tear excepted; the landlord bears the burden of proof, and deposits earn 1% simple annual interest.
Subdivisions 4 and 7 describe a penalty equal to the portion withheld plus interest and up to $500 in punitive damages for bad-faith retention, which a court decides.
Watch your own deadline: The landlord’s three-week period is tied to receipt of your mailing address or delivery instructions, so give the landlord a written mailing address promptly and keep proof of when it was received. Separately, § 504B.178, subd. 8 generally bars withholding the last rent payment on the theory that the deposit covers it, except in limited cases, and a tenant who does so may owe a penalty.
Check coverage: Section 504B.178 governs money deposited to secure a residential rental agreement, but not a deposit that is exclusively an advance payment of rent. If the landlord’s interest ended, for example through a sale, subdivisions 5 and 6 address transfer of the deposit to a successor. Local ordinances may add requirements.
These are general summaries, not conclusions about your situation. Review the linked official text and obtain legal advice when needed.
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