Getting The Deposit Back
Minn. Stat. 504B.178 — back within three weeks with interest, or the amount withheld again as a penalty
Three weeks. A Minnesota landlord returns the deposit with interest, or gives the tenant a written statement of the specific reason for keeping any part of it, within three weeks after the tenancy ends and after receiving the tenant's mailing address or delivery instructions. When the tenant leaves because the building was condemned, not through the tenant's own conduct, the time is five days.
Mailing it first class, postage prepaid, to the address the tenant gave, within the time, is enough. The landlord may keep only amounts reasonably necessary for unpaid rent or other money due under an agreement, or to restore the premises to their condition at the start of the tenancy, ordinary wear and tear excepted, and carries the burden of proving the reason in any action over the deposit.
One percent interest. The deposit bears simple noncompounded interest at one percent a year, from the first day of the month after it was paid in full.
The amount withheld again, and up to $500 for bad faith. A landlord who misses the deadline, or does not give notice of and complete the initial and move-out inspections the tenant asks for, owes a penalty equal to the portion withheld, with interest, on top of that portion. Bad faith retention adds punitive damages up to $500 per deposit, and is presumed when the landlord missed the deadline and does not return the deposit within two weeks after an action for it begins.
A tenant may not withhold the last month's rent on the ground that the deposit should cover it, except on a month to month agreement where neither side has served a notice to quit. A waiver of the section is void, and an action for the deposit, including in conciliation court, may be brought where the rental is or, at the tenant's option, where the landlord lives.
Sources for this section (1)
- Minn. Stat. 504B.178 — Interest on security deposits; withholding security deposits; damages
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed Minnesota attorney.