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Deposits

Security deposit law in Minnesota

Minnesota's cap, return deadline, itemization rule, and wrongful-withholding penalty, with the controlling statute linked.

4 min read

Short answer

Minnesota sets no statutory limit on the security deposit a landlord may collect, and the deposit must be returned within 21 days. Wrongful withholding exposure is punitive $500 plus amount (bad faith). The controlling text is Minn. Stat. § 504B.178, verified July 2026; confirm the current statute before acting, since legislatures amend deposit law and cities layer stricter rules on top.

No statutory limit. The return rule is 21 days. The controlling text is Minn. Stat. § 504B.178.

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Minnesota's return deadline

21 days.

You have 21 days after the tenancy ends and the tenant gives a forwarding address to return the deposit with interest and a written statement of any deductions. The clock runs from the later of the tenancy ending or receiving the address.

The itemized statement rule

A written statement of the reasons for withholding any part of the deposit is required within 21 days. Withholding for ordinary wear is not permitted.

Account and interest rules

Minnesota sets no separate-account requirement but does require you to pay the tenant simple interest on the deposit at the statutory rate.

Exposure for wrongful withholding

Punitive $500 plus amount (bad faith).

A landlord who withholds in bad faith is liable for the amount wrongfully withheld plus punitive damages of up to $500. Bad faith is the trigger, so a timely, documented statement holds the exposure to the disputed lines.

Minnesota has no statutory deposit maximum

No statutory limit.

Compare Minnesota with neighboring states

  • Wisconsin: no statutory limit; return rule: 21 days.
  • Iowa: two months' rent; return rule: 30 days.
  • South Dakota: one month's rent; return rule: 14 days.
  • North Dakota: one month's rent; return rule: 30 days.

Verified against Minn. Stat. § 504B.178 and official state sources in July 2026. Before withholding money, check the current statute text or ask a local landlord-tenant attorney. General information, not legal advice.

Questions landlords actually ask

Does Minnesota cap residential security deposits?
No statutory limit
What is the security deposit return deadline in Minnesota?
21 days. You have 21 days after the tenancy ends and the tenant gives a forwarding address to return the deposit with interest and a written statement of any deductions. The clock runs from the later of the tenancy ending or receiving the address.
What itemization does Minnesota require?
A written statement of the reasons for withholding any part of the deposit is required within 21 days. Withholding for ordinary wear is not permitted.
What is the wrongful-withholding exposure in Minnesota?
Punitive $500 plus amount (bad faith). A landlord who withholds in bad faith is liable for the amount wrongfully withheld plus punitive damages of up to $500. Bad faith is the trigger, so a timely, documented statement holds the exposure to the disputed lines.