No cap, but 1% interest
Minnesota does not limit the amount of a deposit. It does require the landlord to pay simple, non-compounded interest of 1% a year on the deposit. Interest of less than $1 does not have to be paid (§ 504B.178 subd. 2).
Three weeks after your address
Within three weeks after the tenancy ends, and after receiving your mailing address or delivery instructions, the landlord must return the deposit with interest or give you a written statement of why it withheld any part. If the unit was condemned, the deadline is five days. Sending the refund by first-class mail meets the requirement (subd. 3). The landlord may withhold only what is reasonably necessary to cover unpaid rent or other money owed under the lease, and to repair damage beyond ordinary wear and tear.
Inspections under § 504B.182
Section 504B.182 sets out an initial inspection, offered within 14 days of move-in, and a move-out inspection held no earlier than 5 days before the tenancy ends. The landlord must give you notice so you can attend. Under § 504B.178 subd. 4, failing to follow the inspection rules can lead to the same penalty as wrongful withholding.
Do not skip the last month's rent
Under subd. 8, you may not withhold your last month's rent on the grounds that the landlord already holds your deposit. Doing so can expose you to liability. Cases can be brought in conciliation court (subd. 9), and the lease cannot waive these rights. Our calculator counts the 21 days.
Steps to recover a Minnesota deposit
- Attend the initial and move-out inspections.
- Pay your last month's rent.
- Send your forwarding address in writing.
- After three weeks, demand the deposit plus 1% interest, citing § 504B.178.
- If that fails, file a claim in conciliation court.
Neighboring states
Wisconsin uses 21 days and doubles losses. Iowa caps deposits at two months and gives 30 days. Michigan has its own inventory checklist system.
Frequently asked questions
Is there a cap on security deposits in Minnesota?
No. Minn. Stat. § 504B.178 sets no maximum.
Do Minnesota landlords pay interest on deposits?
Yes: 1% simple, non-compounded interest a year. Amounts under $1 are excluded.
How long does a Minnesota landlord have to return a deposit?
Three weeks after the tenancy ends and the landlord receives your address, or five days after a condemnation.
What is the penalty in Minnesota?
A penalty equal to the amount withheld plus interest, and up to $500 more for bad faith.
Sources
- Minn. Stat. § 504B.178 (Minnesota Revisor of Statutes)
- Minn. Stat. § 504B.182 — initial and move-out inspections (Minnesota Revisor of Statutes)
Last reviewed Oct 17, 2026. Read how we verify. Found an error? Tell us.