Minnesota Security Deposit Return Deadline & Penalty Calculator
Tuesday, November 3, 2026
Computed as 21 calendar days under Minn. Stat. § 504B.178.
Minnesota Small Claims Court cap: $15,000 — eligible for Small Claims Court filing.
Minnesota Security Deposit Rules at a Glance (Minn. Stat. § 504B.178)
21 calendar days after tenancy termination and the tenant providing a written forwarding address under Minn. Stat. § 504B.178. The landlord must mail the full deposit plus accrued 1% simple interest, or an itemized statement showing the specific reason for every deduction and the remaining balance. Reduced to 5 calendar days if the building is condemned.
| Deadline (No Deductions) | 21 calendar days |
|---|---|
| Deadline (With Itemized Deductions) | 21 calendar days |
| Maximum Deposit Cap | No statewide statutory cap under Minnesota state law; the deposit amount is governed by the written lease contract. |
| Bad-Faith / Late Penalty | Under Minn. Stat. § 504B.178, subd. 4 and subd. 7, failure to return the deposit within 21 days subjects the landlord to a penalty equal to the portion wrongfully withheld. If the court finds the withholding was in bad faith, the landlord is liable for punitive damages of up to $500 plus court costs and attorney's fees. |
| Deposit Interest Rule | Mandatory under Minn. Stat. § 504B.178, subd. 2: landlords must pay 1% non-compounded annual simple interest on all security deposits, calculated from the month following receipt to the date of refund. |
| Small Claims Court Limit | $15,000 |
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Key Minnesota Statutory Nuances & Documentation Rules
- 1% Mandatory Simple Interest: Minnesota statute explicitly requires landlords to pay 1% annual simple interest on residential deposits, regardless of the bank's actual rate or the size of the rental building.
- Written Forwarding Address Triggers the 21-Day Clock: The 21-day timeline does not begin until the tenant supplies a written forwarding address or delivery instructions.
- 5-Day Condemnation Rule (Subd. 3(a)(2)): If a tenant is forced to vacate because the property was legally condemned or deemed uninhabitable by code enforcement, the landlord must return the deposit within 5 days.
- Automatic Forfeiture of Deductions: Failing to mail the itemized statement within 21 days forfeits the landlord's right to withhold any part of the deposit for damages.
Minneapolis Rental Move-Out Past 21 Days
A tenant vacates a Minneapolis apartment on July 31, 2026 after paying a $1,800 deposit and provides a written forwarding address on move-out. Under Minn. Stat. § 504B.178, the 21-day deadline expires on Friday, August 21, 2026. If the landlord retains $800 without sending the itemized list by August 21, the landlord violates Minnesota law. In Minnesota Conciliation Court (Small Claims limit $15,000), under subd. 4 and subd. 7, the judge can award the $800 deposit, 1% statutory interest, an $800 statutory penalty (double recovery), and up to $500 in bad-faith punitive damages, totaling $2,100+.
Minnesota Security Deposit Return FAQs
How long does a Minnesota landlord have to return a security deposit?
Under Minnesota Statutes § 504B.178, subd. 3, the landlord must return the security deposit with accrued interest, or send an itemized written explanation of deductions and the balance, within 21 calendar days after tenancy termination and receipt of the tenant's mailing address.
Are Minnesota landlords required to pay interest on deposits?
Yes. Under Minn. Stat. § 504B.178, subd. 2, landlords are required by state law to pay 1% annual simple interest on all security deposits, calculated from the month after receipt until the deposit is refunded.
What is the penalty if a Minnesota landlord fails to return the deposit?
Under Minn. Stat. § 504B.178, subd. 4 and subd. 7, if a landlord fails to return the deposit within 21 days, they owe the unreturned sum plus an equal amount as a statutory penalty (double recovery), plus up to $500 in punitive damages if the withholding was in bad faith.
Does a tenant in Minnesota have to provide a forwarding address in writing?
Yes. Minn. Stat. § 504B.178, subd. 3 states that the 21-day clock begins only after the tenant provides a written statement of the tenant's forwarding address or delivery instructions.