VERY HIGH RISK

Minnesota

Security deposit laws

Minnesota security deposit laws are detailed under the Minnesota Statutes, Chapter 504B. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under Minnesota law. Please note that rules and regulations may vary by municipality.

Collecting & Holding

Security Deposit Amount

Landlords may charge a security deposit that does not exceed the equivalent of one month's rent.

Options for Holding

Must be held for the tenant and shall bear simple non-compounded interest at the rate of one percent per annum.

Notification Requirements

Minnesota state law does not impose any notification requirements on landlords regarding where the security deposit is held.

Payment of Interest Earned

Interest earned at 1% per annum due within 3 weeks of the end of tenancy or within 5 days of the date when the tenant leaves the building or dwelling due to the legal condemnation of the building or dwelling.

Returning

Timeline for Returning

The security deposit must be returned to the tenant within 21 days after the end of the lease term or after the tenant vacates the property, whichever is later. If the landlord retains part of the deposit, they must provide an itemized statement detailing the reasons for any deductions.

Claims Process

If the landlord withholds any portion of the security deposit for damages or unpaid rent, they must provide an itemized statement of deductions along with the remaining deposit. The itemized statement must be sent to the tenant's last known address.

Permissible Deductions

Minnesota landlords may deduct amounts from the security deposit for:

  • Unpaid rent
  • Damage to the property beyond normal wear and tear
  • Cleaning costs required to return the property to its original condition (beyond normal wear and tear)
  • Any other charges specified in the lease agreement that are legally permissible

Penalties

If a landlord fails to comply with the requirements for returning the security deposit or providing an itemized statement, the tenant may sue for the amount of the deposit plus any damages caused by the landlord’s failure to comply. If the tenant prevails in court, they may be awarded the amount wrongfully withheld plus damages up to twice the amount of the deposit.

Special Circumstances

Abandoned Property: If a tenant abandons the property, the landlord is still required to follow the rules for returning the security deposit and providing an itemized statement. However, if the tenant does not provide a forwarding address, the landlord may send the deposit and the itemized statement to the last known address.

DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for
general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a
qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or
warranties regarding the accuracy, completeness, or reliability of the information presented.

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