The cap is No statewide cap. The return deadline is 21 days after termination of the tenancy / surrender of possession (or within 5 days of receipt of the tenant’s new address if later), with itemization. Interest: Yes — landlords must pay 1% simple interest (or the amount actually earned on a required escrow, depending on the posture) on deposits. That is what separates Minnesota getting a security deposit back from a generic national summary. Read Minn. Stat. § 504B.178 before the background sections below. Wrongful withholding can support damages of up to twice the amount of the deposit withheld plus interest and a penalty.
When the deposit must be returned
21 days after termination of the tenancy / surrender of possession (or within 5 days of receipt of the tenant’s new address if later), with itemization
Interest and accounting
Yes — landlords must pay 1% simple interest (or the amount actually earned on a required escrow, depending on the posture) on deposits.
Penalties for wrongful withholding
Wrongful withholding can support damages of up to twice the amount of the deposit withheld plus interest and a penalty.
A concrete Minnesota scenario
Here is one way the Minnesota pieces fit together. Change any fact and the statute may point somewhere else.
A residential tenant moves out of a Minnesota rental and the landlord has not returned the deposit.
- Check the cap that applied when the deposit was collected: No statewide cap.
- Calendar the return deadline: 21 days after termination of the tenancy / surrender of possession (or within 5 days of receipt of the tenant’s new address if later), with itemization
- Interest, if any: Yes — landlords must pay 1% simple interest (or the amount actually earned on a required escrow, depending on the posture) on deposits.
- If the landlord keeps money without the required accounting: Wrongful withholding can support damages of up to twice the amount of the deposit withheld plus interest and a penalty.
Minnesota requires timely return with itemization within 21 days and payment of interest on deposits. There is no statewide maximum. Housing court / conciliation court handles many disputes.
Practical process for tenants and landlords
Minnesota requires timely return with itemization within 21 days and payment of interest on deposits. There is no statewide maximum. Housing court / conciliation court handles many disputes.
Document the unit with dated photos or video at move-in and move-out, keep the lease and any inspection checklist, and send a dated written demand if the deadline passes without a lawful accounting.
Related Minnesota guides
- How to file for divorce in Minnesota
- Child custody and parenting time in Minnesota
- DUI penalties in Minnesota
Case law: security deposits in Minnesota
Mary COCCHIARELLA, Appellant, v. Donald DRIGGS, Respondent
Mary COCCHIARELLA, Appellant, v. Donald DRIGGS, Respondent, 2016 Minn. LEXIS 572 (2016)
…Driggs requested and received the first month’s rent and a security deposit, and agreed to rent the residential premises to Cocchiarella. He later refused to deliver physical possession of the premises to her. The housing referee recommended granting Driggs’s motion to dismiss, concluding that Cocchiarella did not qualify as a “residential tenant” under the unlawful exclusion…
Mary COCCHIARELLA, Appellant, v. Donald DRIGGS, Respondent is worth reading on Minnesota security deposits because the court put the point in its own words: "Driggs requested and received the first month’s rent and a security deposit, and agreed to rent the residential premises to Cocchiarella. He later refused to deliver physical possession of the premises to her." Use that passage as the starting point, then read the facts that precede it.
STATE of Minnesota, Respondent, v. Frank Donald LARSON, Petitioner, Appellant
…unds. 3 Larson appealed his convictions, arguing that lease security deposit funds are not the “property of another” under the theft statute 4 and that Minn.Stat. § 609.445 (1996), failure to pay over state funds, should not apply to automobile dealers. The court of appeals affirmed appellant’s convictions. We granted appellant’s petition for review and now reverse the decision…
Practitioners open STATE of Minnesota, Respondent, v. Frank Donald LARSON, Petitioner, Appellant when Minnesota security deposits turns on the distinction in this sentence: "Larson appealed his convictions, arguing that lease security deposit funds are not the “property of another” under the theft statute 4 and that Minn.Stat. § 609.445 (1996), failure to pay over state funds, should not apply to automobile dealers." Do not lift it out of the facts the court was deciding.
Randy L. OSBORNE, Et Al., Petitioners, Appellants, v. Richard CHAPMAN, Respondent
…t MSI, plus interest but less $200, the amount of Chapman’s security deposit. The district court also denied Chapman’s motion for a new trial or judgment notwithstanding the verdict. The court of appeals reversed as to both items of damage. Osborne v. Chapman, 562 N.W.2d 1, 4 (Minn.App.1997). First, the court determined that Coverage D of the Osbornes’ homeowner’s policy, the l…
Minnesota opinions such as Randy L. OSBORNE, Et Al., Petitioners, Appellants, v. Richard CHAPMAN, Respondent are cited where security deposits is disputed. The court stated: "MSI, plus interest but less $200, the amount of Chapman’s security deposit. The district court also denied Chapman’s motion for a new trial or judgment notwithstanding the verdict. The court of appeals reversed as to both items of damage. Osborne v. Chapman, 562 N.W.2d 1, 4 (Minn." That is the language to brief; the rest of the decision supplies the procedural posture.
MELROSE GATES, LLC, Respondent, v. CHOR MOUA, Et Al., Appellants
MELROSE GATES, LLC, Respondent, v. CHOR MOUA, Et Al., Appellants, 2016 Minn. LEXIS 57 (2016)
…re required to pay rent of $800 per month, and to provide.a security deposit of $759. The lease included blank lines that the parties filled in for the street address of the premises and the apartment number. The lease covered a variety of topics, in-*817eluding liability for damage to the leased property. On June 2, 2012, Tenants’ apartment and a neighboring apartment were dam…
Minnesota opinions such as MELROSE GATES, LLC, Respondent, v. CHOR MOUA, Et Al., Appellants are cited where security deposits is disputed. The court stated: "The lease included blank lines that the parties filled in for the street address of the premises and the apartment number. The lease covered a variety of topics, in-*817eluding liability for damage to the leased property." That is the language to brief; the rest of the decision supplies the procedural posture.
Marsha LOVE, Respondent, v. Boyd AMSLER, Sr., Appellant
Marsha LOVE, Respondent, v. Boyd AMSLER, Sr., Appellant, 1989 Minn. App. LEXIS 694 (1989)
…Mich.App. 108, 338 N.W.2d 892 (1983) (improper retention of security deposits violates state consumer protection statute); 49 Prospect Street v. Sheva Gardens, 227 N.J.Super. 449, 547 A.2d 1134 (1988) (state consumer fraud act applies to rental of residential real estate); Commonwealth v. Monumental Properties, Inc., 459 Pa. 450, 329 A.2d 812 (1974) (leasing of residential prop…
Practitioners open Marsha LOVE, Respondent, v. Boyd AMSLER, Sr., Appellant when Minnesota security deposits turns on the distinction in this sentence: "Mich.App. 108, 338 N.W.2d 892 (1983) (improper retention of security deposits violates state consumer protection statute); 49 Prospect Street v. Sheva Gardens, 227 N.J.Super. 449, 547 A." Do not lift it out of the facts the court was deciding.
Key takeaways
- Maximum deposit: No statewide cap
- Return deadline: 21 days after termination of the tenancy / surrender of possession (or within 5 days of receipt of the tenant’s new address if later), with itemization
- Interest: Yes — landlords must pay 1% simple interest (or the amount actually earned on a required escrow, depending on the posture) on deposits.
- Penalties: Wrongful withholding can support damages of up to twice the amount of the deposit withheld plus interest and a penalty.
- Primary authority: Minn. Stat. § 504B.178.
Deposit limits in Minnesota
No statewide cap
Frequently asked questions
How much can a landlord charge for a security deposit in Minnesota?
No statewide cap
How long does a landlord have to return my deposit?
21 days after termination of the tenancy / surrender of possession (or within 5 days of receipt of the tenant’s new address if later), with itemization
What if my landlord keeps the deposit without an itemized list?
Wrongful withholding can support damages of up to twice the amount of the deposit withheld plus interest and a penalty.
This guide covers Minnesota residential security-deposit law as of 2026. Commercial leases and local ordinances can differ — verify the statute that applies to your unit.