Minnesota security deposit rules
Minnesota sets no statutory limit on the size of a security deposit. The deposit must be returned within three weeks (21 days) after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions; 5 days if the tenant leaves because the building is condemned, with an itemised list of any deductions. Minnesota is one of the states that requires interest on the deposit.
What the law requires
No statutory limit. Returned Within three weeks (21 days) after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions; 5 days if the tenant leaves because the building is condemned. Read on the official Minnesota Revisor site. Interest: simple noncompounded 1% per annum from the first day of the month after full payment. Return: 'within three weeks after termination of the tenancy' with interest, or a written statement of specific reasons for withholding. Bad-faith retention exposes landlord to punitive damages (subd. 7). History shows 2023 c 52 art 19 s 85 and 2024 c 85 s 105 amendments (2024 change to subd. 2 interest wording; 1% rate and three-week deadline unchanged). Pre-lease deposit rules (§ 504B.175) not re-read this session. § 504B.144 (2023, amended 2024) bars requiring lease renewal more than 6 months before expiration on leases longer than 10 months.
- Deductions: unpaid rent and damage beyond normal wear and tear, itemised in writing. Cleaning and repainting after ordinary use are normal wear in most states.
- Deadline: the 21-day clock usually starts when the tenant moves out and, in many states, when a forwarding address is provided. Missing it typically forfeits the landlord’s right to keep any of the deposit and can add statutory damages.
- Pets: No cap on pet deposits. Leases must state that fees, charges, or deposits for service or support animals are prohibited (2024 c 118, eff. Jan 1, 2025; secondary source).
- Interest: Minnesota requires interest on the deposit. The deposit interest calculator applies the rate and thresholds.
Move-out checklist
- Give written notice of the move-out date and a forwarding address; many deadlines only start when the landlord has the address.
- Photograph every room after cleaning, with a timestamp. Request a joint inspection where the state allows one.
- If the deadline passes, send a written demand citing Minn. Stat. § 504B.178 subd. 2 (interest), subd. 3 (return). Small-claims court handles deposit disputes in every state and most cap the claim well above a typical deposit.
Related Minnesota rules
- Late fees: Late fee may not exceed 8% of the overdue rent payment and only if the written lease specifies when it is imposed; no statutory grace period. For housing-assistance tenancies the fee is computed only on the tenant's share (para. (c), added 2024 c 118 s 13). Late fee calculator.
- Notice to end a tenancy: Tenancy at will: written notice at least as long as the interval between rent due dates, but never more than 3 months (so one month for monthly rent). Amended by 2023 c 52 art 19 s 97 (eff. Jan 1, 2024); applies equally to landlord and tenant. § 504B.147: a landlord's notice to quit or of rent increase may not be shorter than the notice the lease requires the tenant to give. Notice calculator.
- All rules on one page: Minnesota landlord and tenant law.
Frequently asked questions
How much can a landlord charge for a security deposit in Minnesota?
There is no statutory cap in Minnesota; the market and the lease decide. Read on the official Minnesota Revisor site. Interest: simple noncompounded 1% per annum from the first day of the month after full payment. Return: 'within three weeks after termination of the tenancy' with interest, or a written statement of specific reasons for withholding. Bad-faith retention exposes landlord to punitive damages (subd. 7). History shows 2023 c 52 art 19 s 85 and 2024 c 85 s 105 amendments (2024 change to subd. 2 interest wording; 1% rate and three-week deadline unchanged). Pre-lease deposit rules (§ 504B.175) not re-read this session. § 504B.144 (2023, amended 2024) bars requiring lease renewal more than 6 months before expiration on leases longer than 10 months.
How long does a landlord have to return a security deposit in Minnesota?
Within three weeks (21 days) after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions; 5 days if the tenant leaves because the building is condemned. The statute is Minn. Stat. § 504B.178 subd. 2 (interest), subd. 3 (return).
Does a Minnesota landlord have to pay interest on the security deposit?
Yes, in the circumstances set out in Minn. Stat. § 504B.178 subd. 2 (interest), subd. 3 (return). See the Minnesota deposit interest calculator for the rate and the rules.
Are pet deposits limited in Minnesota?
No cap on pet deposits. Leases must state that fees, charges, or deposits for service or support animals are prohibited (2024 c 118, eff. Jan 1, 2025; secondary source).