Minnesota security deposit law

• Within 3 weeks after the tenancy ends, return the deposit with interest or give a written statement of the specific reasons for keeping any of it.
• Return the deposit with interest or give the written statement within 5 days after the tenant leaves.

The deadlines run only after the landlord receives the tenant's mailing address or delivery instructions.

Required: Yes. Written statement giving the specific reason for withholding any part of the deposit.

The landlord may withhold only what is reasonably needed to cover unpaid rent or other money owed, or to restore the unit to its condition at the start of the tenancy, excluding ordinary wear and tear. The statute does not define ordinary wear and tear.

The statute does not address nonrefundable fees.

• Interest required: Yes. 1% a year, simple and noncompounded, from the first day of the month after the full deposit is paid; amounts under $1 are excluded.
• Separate account required: No. No separate account required; the deposit is not a fiduciary fund.
• Move-in inspection required: No. At the start of the tenancy or within 14 days of move-in, the landlord must tell the tenant they may request an initial inspection. The landlord must also give written notice that the tenant may request a move-out inspection, no earlier than 5 days before move-out (§ 504B.182).

Missing the deadline or required inspections: the withheld amount plus interest as a penalty, on top of the amount wrongfully withheld plus interest. Bad-faith retention adds punitive damages up to $500 (§ 504B.178 subds. 4, 7).

Retention is presumed to be in bad faith if the landlord missed the return/statement deadline or the transfer rule, unless the deposit is returned within 2 weeks after the tenant starts a lawsuit.

Conciliation court hears claims up to $20,000 (Minn. Stat. § 491A.01). Court information

Before filing, many tenants send a written demand first. Write a Minnesota demand letter →

• Saint Paul: Deposit and prepaid rent each capped at 1 month's rent, with one more month allowed for an applicant who could otherwise be denied (Tenant Protections Ordinance, Legislative Code ch. 193, effective May 14, 2026).
• Minneapolis: Deposit capped at 1 month's rent. If other upfront payments are required, the deposit is capped at half a month's rent payable over 3 months. Up to 1½ months' rent when a government agency or nonprofit refers the renter (Code § 244.2040). A returned deposit must come with copies of Minn. Stat. § 504B.178 and Minneapolis Code § 244.2040.

• In any lawsuit, the landlord must prove the reason for withholding by a fair preponderance of the evidence.
• A tenant generally may not withhold the last rent payment on the theory that the deposit covers it; doing so can make the tenant liable for a penalty (§ 504B.178 subd. 8).
• The landlord must transfer or return the deposit within 60 days after selling or otherwise losing their interest in the property.
• A lease cannot waive these rules.

• Minn. Stat. § 504B.178 Retrieved October 11, 2026.
• Minn. Stat. § 504B.182 Retrieved October 11, 2026.
• Minn. Stat. § 491A.01 Retrieved October 11, 2026.
• City of Minneapolis: Rental security deposits Retrieved October 11, 2026.
• City of Saint Paul: Tenant Protections Ordinance Retrieved October 11, 2026.

Laws change. This page was checked against the sources above on October 11, 2026. It is legal information, not legal advice; see our methodology.