Minnesota Security Deposit Law: Deadlines & Penalties
Minnesota landlords must return a security deposit, with interest, within three weeks after the tenancy ends and they receive the tenant's mailing address or delivery instructions. Instead of a full refund, the landlord may send a written statement giving the specific reasons for keeping part of it. Deductions are limited to unpaid rent or other money owed under the lease and the cost of restoring the unit beyond ordinary wear and tear.
The clock doesn't start until the landlord has your mailing address, so this letter includes it. If you had to leave because the building was condemned, and not through your own fault, the deadline is just five days. The landlord carries the burden of proving the reason for any amount withheld. Deposits earn simple interest at 1% a year.
A landlord who misses the deadline or fails to give a proper statement owes the withheld amount plus interest, and an equal amount as a penalty. Keeping a deposit in bad faith can add up to $500 in punitive damages. Minnesota tenants also generally can't withhold the last month's rent on the theory that the deposit will cover it.
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Minnesota: common questions
How long does a Minnesota landlord have to return a deposit?
Three weeks, or 21 days, after the tenancy ends and the landlord receives your mailing address or delivery instructions. If you left because the building was condemned through no fault of your own, the deadline is five days.
Does my Minnesota deposit earn interest?
Yes. Minnesota deposits earn simple, noncompounded interest at 1% a year, which must be paid along with the deposit or applied to lawful deductions. Interest amounts of less than $1 do not have to be paid.
What penalty applies if a Minnesota landlord breaks the rules?
The landlord can owe the amount wrongfully withheld plus interest, and an additional equal amount as a penalty. If the deposit was kept in bad faith, a court may add up to $500 in punitive damages. Missing the deadline creates a presumption of bad faith unless the deposit is returned within two weeks after you sue.
Where do I file a deposit claim in Minnesota?
Conciliation court, Minnesota's version of small claims court, hears most claims up to $20,000. It is designed for people representing themselves, so bring your lease, photos, this letter and your proof of mailing to the hearing.
Compare nearby states
| State | Return deadline | Itemized list | Small claims limit |
|---|---|---|---|
| Minnesota | 21 days | Required | $20,000 (conciliation court) |
| Iowa | 30 days | Required | $6,500 |
| North Dakota | 30 days | Required | $15,000 |
| South Dakota | 21 days | Required | $12,000 |
| Wisconsin | 21 days | Required | $10,000, rising to $15,000 on January 1, 2027 |
| Alabama | 60 days | Required | $6,000 |
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