✓ Law Verified June 2026
This guide explains minnesota security deposit law in plain English — how much your landlord can charge, when they must return it, what they can and cannot deduct, and what to do if they do not give it back. All figures are from Minnesota law, verified as of June 2026.
In This Minnesota Guide:
Minnesota Security Deposit Rules at a Glance
| Maximum deposit | No state limit. Minnesota law does not cap the amount a landlord may charge as a security deposit. However, some cities (such as Minneapolis) impose local limits of one month’s rent. There is no statewide maximum in months or dollars. |
| Return deadline | 21 days after the tenant vacates and the landlord receives the tenant’s forwarding address. If the tenant must leave due to building condemnation, the deadline is 5 days. |
| Itemized deductions required | YES. The landlord must provide a written itemized statement listing each deduction and the amount withheld within the same 21-day period. Failure to provide the itemized statement means the landlord forfeits the right to withhold any portion of the deposit. |
| Interest on deposit required | YES. Landlords must pay simple noncompounded interest at 1% per year on the security deposit. Interest is computed from the first day of the month following full payment of the deposit to the last day of the month in which the landlord returns the deposit. Any accrued interest must be returned with the deposit at move-out. (Minn. Stat. 504B.178, subd. 2) |
| Penalty for late/bad-faith return | If the landlord fails to return the deposit and itemized statement within 21 days, the tenant may recover the full deposit regardless of whether legitimate deductions existed. Bad faith retention subjects the landlord to punitive damages up to 500 per deposit on top of actual damages. If the landlord failed to offer move-in and move-out inspections as required under 504B.182, the landlord is liable for a penalty equal to the amount wrongfully withheld plus interest (effectively doubling the damages). Many tenants can recover the deposit amount plus an equal penalty plus up to 500 in punitive damages in conciliation court. |
Move-in/move-out walkthrough: YES — the landlord must notify the tenant. At the start of tenancy (or within 14 days of occupancy), the landlord must notify the tenant of their right to request an initial move-in inspection to document pre-existing conditions.
Before move-out (no earlier than 5 days before the lease ends), the landlord must notify the tenant in writing of their right to request a move-out inspection and to be present during it.
The purpose is to give the tenant a chance to remedy deficiencies and avoid deductions. If the tenant does not request the inspection, the landlord’s duty is discharged. Alternatively, the parties may agree to use photos or video to document conditions instead of an in-person inspection. (Minn. Stat. 504B.182)
Separate deposit account: NO. Minnesota does not require landlords to hold security deposits in a separate or dedicated bank account. However, the deposit must bear 1% simple annual interest, which effectively requires the landlord to track the funds.
What Your Landlord Can and Cannot Deduct in Minnesota
Unpaid rent; damage to the rental unit beyond normal wear and tear caused by the tenant, their guests, or unauthorized occupants; breach of the lease agreement; and costs to restore the unit to its condition at move-in (minus normal wear). Cleaning may only be deducted if the unit is left in a condition worse than when the tenant moved in, beyond normal use.
Normal wear and tear vs damage: Normal wear and tear is the natural deterioration that occurs from ordinary, everyday use of the rental unit over time. Examples include minor scuff marks on floors, small nail holes from typical picture hanging, faded paint, and worn carpet in high-traffic areas.
Damage from neglect, misuse, or abuse — such as large holes in walls, broken fixtures, large stains, or pet damage — is NOT normal wear and tear and may be deducted.
How to Get Your Deposit Back in Minnesota
Step 1: Send a written demand letter to the landlord requesting return of the deposit and citing Minn. Stat. 504B.178. Step 2: If the landlord does not comply within a reasonable time, file a claim in conciliation court (Minnesota’s small claims court) in the county where the rental unit is located. Conciliation court handles claims up to 15000 (some counties allow online filing).
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You may recover the wrongfully withheld amount, a penalty equal to that amount, up to 500 in punitive damages for bad faith, plus court costs and interest. You do not need an attorney for conciliation court. Many tenants also contact the Minnesota Attorney General’s office or local tenant rights organizations for guidance.
Other Minnesota deposit rules: (1) If a landlord fails to return the deposit within 21 days, retention is PRESUMED to be in bad faith unless the landlord returns it within 2 weeks after the tenant files a lawsuit.
(2) Any lease clause attempting to waive the tenant’s rights under 504B.178 is void and unenforceable. (3) Tenants may not withhold the last month’s rent as a substitute for the security deposit unless the landlord agrees in writing.
(4) The 504B.182 inspection notice requirement (move-in and move-out) was added effective January 1, 2024 — landlords who fail to comply face the doubled penalty described above. (5) Some Minnesota cities (Minneapolis, St. Paul) have additional local ordinances imposing stricter deposit limits or prepaid rent restrictions — tenants should check local rules in addition to state law.
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Renters insurance protects your belongings for a few dollars a month.
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Official Minnesota Sources & Resources
- Minnesota Attorney General: https://www.ag.state.mn.us/Consumer/Handbooks/LT/CH3.asp
- Minnesota Security Deposit Statute: https://www.revisor.mn.gov/statutes/cite/504B.178
- U.S. Department of Housing and Urban Development: hud.gov
- Cornell Legal Information Institute: law.cornell.edu/wex
Understanding Minnesota Security Deposit Law
Your Minnesota security deposit is your money until the landlord proves a lawful deduction. Minnesota security deposit law sets clear limits on how much can be charged, what can be deducted, and when the balance must be returned. If your landlord misses the Minnesota security deposit return deadline or takes deductions that are not allowed, you may be entitled to penalties.
Document the condition of your unit at move-in and move-out — photos are the best protection for your Minnesota security deposit.
This Minnesota security deposit guide was last verified against official sources in June 2026. Laws change — verify with your state or a local legal-aid office.
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Disclaimer: This guide is informational only and is not legal advice. Landlord-tenant laws change and vary by city and county within a state. Verify current rules with your state, your local court, or a free legal-aid office before acting. If you are facing eviction, contact a local tenant attorney or legal-aid organization right away.