Minnesota security deposit law

Security Deposit Laws in Minnesota: What Your Landlord Can and Cannot Keep

Your landlord has 21 days under Minnesota law to return your security deposit, or you may be owed more than what they withheld. If they keep more than they're legally allowed, you can dispute it.

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Minnesota security deposit return timeline

Deadline to return

21 days

Statute

Minn. Stat. § 504B.178, subd. 3 (return), subd. 4 (damages), subd. 7 (bad faith); inspection duties at § 504B.182

The statutory words are 'within THREE WEEKS after termination of the tenancy', not '21 days' — equivalent in length, but quote the statute's phrasing. CRITICAL: the period runs only from three weeks after termination AND after receipt of the tenant's mailing address or delivery instructions; both conditions must be met, so a tenant who never supplied an address has not started the clock. DIFFERENT DEADLINE ON CONDEMNATION: where the tenant leaves because the building was legally condemned for reasons not due to the tenant's willful, malicious, or irresponsible conduct, the period is FIVE DAYS. Within the applicable period the landlord must return the deposit with interest or furnish a written statement showing the specific reason for withholding. Mailing rule: placing the deposit or statement in first-class mail, postage prepaid, properly addressed, within the period is sufficient compliance.

What can a landlord legally deduct in Minnesota?

Allowed

  • ✓Amounts reasonably necessary to remedy tenant defaults in payment of rent or other funds due under an agreement
  • ✓Amounts reasonably necessary to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted

Not allowed

  • ✗Ordinary wear and tear
  • ✗Any amount beyond what is reasonably necessary for the two permitted categories

What if your landlord keeps your deposit wrongfully in Minnesota?

Two stacking remedies. (1) Subd. 4: a landlord who fails to provide the written statement in time, fails to transfer/return under subd. 5, OR fails to provide notice for and complete the initial and move-out inspections required by § 504B.182 when requested by the tenant, is liable for damages equal to the portion of the deposit withheld and interest thereon AS A PENALTY, IN ADDITION TO the portion wrongfully withheld and interest — functionally a 2x recovery. (2) Subd. 7: BAD-FAITH retention additionally subjects the landlord to PUNITIVE DAMAGES NOT TO EXCEED $500 per deposit. Bad faith is PRESUMED where the landlord failed to comply with subd. 3 or 5, unless the landlord returns the deposit within two weeks after commencement of a recovery action — invoke this presumption expressly. In any action concerning the deposit the LANDLORD bears the burden of proving the reason for withholding by a fair preponderance of the evidence. Deposit interest is simple, non-compounded, at 1% per annum.

How TenantNex helps

  1. 1. Tell us your move-out date, deposit amount, and landlord's address — two minutes.
  2. 2. We generate a demand letter citing Minn. Stat. § 504B.178, subd. 3 (return), subd. 4 (damages), subd. 7 (bad faith); inspection duties at § 504B.182 and your exact deadline.
  3. 3. We mail it to your landlord via USPS Certified Mail with return receipt.
  4. 4. You track delivery on your case page, with day-7 and day-14 follow-up.

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Minnesota tenant rights resources

Every fact on this page is verified against Minnesota's official statutory text as of 2026-09-04. TenantNex prepares legal correspondence as a document preparation service, not as your attorney. For complex disputes, consult a licensed attorney in Minnesota.

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TenantNex is a document preparation and delivery service, not a law firm. We prepare and send correspondence using publicly available state statutes. We do not provide legal advice, legal representation, or guarantee any outcome. For complex legal matters, consult a licensed attorney in your state.