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Renters' Rights · Security Deposit

Security Deposit Laws in Minnesota

The most a landlord can charge, how long they have to return it, and what it costs them to keep your money without cause in Minnesota.

Reviewed by PlainStatute EditorialLast reviewed July 2026Verified against §504B.178

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Security deposit at a glance · Minnesota
No cap
Minnesota sets no statutory maximum on a residential security deposit. Your lease sets the amount.
Maximum depositNo cap
Return deadline3 weeks (5 days if condemned)
Interest to tenant1% simple per year
Separate accountNot required
ItemizationRequired when withholding
PenaltyPenalty + up to $500 punitive
Statute§504B.178

What your landlord can hold, and when it's due back

Enter your rent for the Minnesota maximum, plus the return-deadline clock.

Deposit calculator · Minnesota
Most a landlord can hold
No legal maximum
Minnesota sets no statutory cap; the lease controls the amount.
Return clock: Three weeks (five days if the building is condemned)
The deadline runs after the tenancy ends and the tenant gives the landlord a mailing address or delivery instructions; a five-day rule applies when the tenant has to leave because the building is legally condemned. Give your landlord a written forwarding address at move-out so the clock starts.

Estimate only, based on Minnesota's statutory cap. Your lease may set a lower deposit, and local ordinances can be stricter. Not legal advice.

The full rules, with the statute

Every requirement and where it comes from in the code.

Maximum deposit
No statutory limit

Exceptions: Minn. Stat. §504B.178 does not cap the amount of a residential security deposit. The statute governs interest, the return deadline, and penalties, but it leaves the amount to the rental agreement.

Return deadline
Three weeks after the tenancy ends, counted from when you give the landlord your mailing address. If you had to move out because the building was legally condemned, the deadline is five days.
Interest to tenant
RequiredYes. Minnesota is one of the few states that requires interest on a security deposit. The deposit earns simple, noncompounded interest at one percent per year, running from the first day of the month after you pay it in full until the landlord returns it. Any interest under $1 is not owed.
Separate account
Not requiredNo. Minnesota law does not require the landlord to keep your deposit in a separate or escrow account. The statute is explicit that the deposit is not held in a fiduciary capacity, so the landlord may hold it however they choose while still owing you the required interest.
Itemization
Required whenever the landlord keeps any part of the deposit. Within the return deadline the landlord must either return the full deposit with interest or send a written statement giving the specific reason for withholding any portion. Money may only be withheld for unpaid rent or other funds owed, or to restore the unit to its move-in condition with ordinary wear and tear excepted. In court the landlord carries the burden of proving the reason for keeping any part of the deposit.

Penalties & recent changes

What happens if the landlord keeps your deposit wrongfully.

If the landlord withholds wrongfully
A landlord who misses the deadline or keeps money without a valid written reason owes the wrongfully withheld amount plus interest, and again the same withheld amount plus interest as a penalty. Bad-faith retention adds punitive damages of up to $500 per deposit. If the landlord did not follow the return rules, the withholding is presumed to be in bad faith unless the landlord returns the deposit within two weeks after the tenant files suit.

What Minnesota renters get wrong

Minnesota is one of the few states that requires a landlord to pay interest on your security deposit: one percent simple interest per year, set by Minn. Stat. §504B.178. The clock on getting your money back starts only after two things happen, the tenancy ends and you give the landlord a mailing address or delivery instructions. From that point the landlord has three weeks to return the deposit with interest or send a written statement explaining what was kept and why. A short five-day deadline applies instead if you had to move out because the building was legally condemned. Minnesota puts no cap on how large the deposit can be, so the amount is set by your lease. If the landlord keeps money in bad faith, you can recover the wrongfully withheld amount, a matching penalty, and punitive damages of up to $500 per deposit.

Common questions

Does my Minnesota landlord have to pay interest on my security deposit?

Yes. Minnesota law requires simple, noncompounded interest at one percent per year on a residential security deposit. It runs from the first day of the month after you pay the deposit in full until the landlord returns it. Interest amounts under $1 are not owed.

How long does a landlord have to return my deposit in Minnesota?

Three weeks after the tenancy ends, but the clock only starts once you give the landlord your mailing address or delivery instructions. Within that time the landlord must return the deposit with interest or send a written statement listing the specific reasons for keeping any part of it. If you had to leave because the building was legally condemned, the deadline is five days.

Is there a limit on how much a landlord can charge for a deposit in Minnesota?

No. Minnesota sets no statutory cap on the amount of a residential security deposit. The amount is set by your lease, though the landlord still owes you one percent annual interest on whatever you pay.

What can I do if my Minnesota landlord wrongfully keeps my deposit?

You can recover the amount wrongfully withheld plus interest, and the same amount again as a penalty. If the landlord acted in bad faith, you can also recover punitive damages of up to $500 per deposit. When the landlord did not follow the return rules, bad faith is presumed unless the deposit is returned within two weeks after you file suit. You can sue in conciliation (small claims) court in the county where the property sits or where the landlord lives.

Primary source
Minn. Stat. §504B.178
Minnesota Office of the Revisor of Statutes, §504B.178 (official 2025 publication) · revisor.mn.gov
PlainStatute Editorial
Every figure on this page is checked line-by-line against the current statute. Editorial standards →

Not legal advicePlainStatute provides plain-language summaries of public law for general information only. This is not legal advice. Statutes change; always confirm current requirements with the official source linked above before acting.

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