Minnesota Security Deposit Law
Minnesota rules on security deposits for renters and landlords, with the statute or official page behind each answer. Last verified: 2026-10-23.
Short answer: No statewide cap on the amount of a security deposit. Minn. Stat. § 504B.178
The rules in Minnesota
| Security deposit limit | No statewide cap on the amount of a security deposit. The Minnesota AG handbook (rev. July 2025) states 'Minnesota law does not set a limit for the amount a landlord may require for a security deposit,' but notes some cities (e.g., Minneapolis, Code of Ord. § 244.2040) limit deposit amounts and allow installment payments. § 504B.178 (https://www.revisor.mn.gov/statutes/cite/504B.178) regulates deposits but sets no maximum. Per the AG, a landlord may raise the deposit in a periodic tenancy only with proper advance written notice (generally one rental period plus a day). Source: Minn. Stat. § 504B.178 |
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| Deposit return deadline | Within three weeks after the tenancy ends (and after the landlord receives the tenant's mailing address or delivery instructions), return the deposit with interest or give a written statement of reasons for withholding. Within 5 days if the tenant must leave because the building is legally condemned (unless the tenant's own willful, malicious, or irresponsible conduct caused it). Mailing by first-class mail within the deadline counts as compliance. If the landlord's interest in the property ends (sale/transfer), the landlord must transfer the deposit to the successor or return it within 60 days. The Minnesota Judicial Branch landlord FAQ describes the deadline as 21 days (https://mncourts.gov/help-topics/landlords/faqs). Official history shows subd. 2 amended 2024 c 85 and subd. 4 amended 2023 c 52 art 19; no 2026 amendment listed. Source: Minn. Stat. § 504B.178, subd. 3 |
| Itemized deductions | If any amount is withheld, the landlord must give a written statement showing the specific reason for the withholding. Deductions are limited to amounts reasonably necessary to cover rent or other payment defaults by the tenant, or to restore the unit to its move-in condition, ordinary wear and tear excepted. The landlord bears the burden of proving the reason for withholding by a fair preponderance of the evidence. Since 2023, landlords must tell tenants of the right to request a move-in inspection (at the start of the tenancy or within 14 days after move-in) and must offer a move-out inspection, at the tenant's request, no earlier than 5 days before the tenancy ends (§ 504B.182, new in 2023 c 52 art 19; https://www.revisor.mn.gov/statutes/cite/504B.182). Source: Minn. Stat. § 504B.178, subd. 3 |
| Interest on deposits | Yes. 1% per year simple, noncompounded interest, from the first day of the month after full payment of the deposit until the last day of the month the landlord complies with the return/statement requirement. Interest amounts under $1 are excluded. Confirmed by the AG handbook (rev. July 2025). Source: Minn. Stat. § 504B.178, subd. 2 |
| Penalty for withholding | If the landlord fails to provide the written statement on time (or fails to do the required inspections when requested), the landlord owes the amount withheld plus interest as a penalty, in addition to returning the wrongfully withheld amount with interest (effectively double). Bad-faith retention adds punitive damages of up to $500 per deposit. Bad faith is presumed if the landlord did not comply with subd. 3 or 5, unless the deposit is returned within two weeks after the tenant starts a court action. A tenant who withholds the last rent payment claiming the deposit covers it can owe a penalty too (subd. 8). Any waiver of § 504B.178 is void. |
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Related questions
- How long does a landlord have to return a security deposit?
- How much can a landlord charge for a security deposit?
- What can a landlord charge for at move-out (cleaning, painting, carpet)?
Minnesota vs. neighboring states
| State | Security deposit limit | Deposit return deadline | Itemized deductions |
|---|---|---|---|
| Minnesota | No statewide cap on the amount of a security deposit. Minn. Stat. § 504B.178 | Within three weeks after the tenancy ends (and after the landlord receives the tenant's mailing address or delivery instructions), return the deposit with interest or give a written statement of reasons for withholding. Within 5 days if the tenant must leave because the building is legally condemned (unless the tenant's own willful, malicious, or irresponsible conduct caused it). Minn. Stat. § 504B.178, subd. 3 | If any amount is withheld, the landlord must give a written statement showing the specific reason for the withholding. Deductions are limited to amounts reasonably necessary to cover rent or other payment defaults by the tenant, or to restore the unit to its move-in condition, ordinary wear and tear excepted. Minn. Stat. § 504B.178, subd. 3 |
| Iowa | Two months' rent. Iowa Code § 562A.12(1) | Within 30 days after termination of the tenancy and receipt of the tenant's mailing address or delivery instructions, return the deposit or give a written statement of the specific reasons for withholding. If no address is provided within one year, the deposit reverts to the landlord. Iowa Code § 562A.12(3)-(4) | Written statement showing the specific reason for withholding any portion; if withheld for restoration, it must specify the nature of the damages. Allowed deductions: unpaid rent or other funds due under the lease, restoring the unit to move-in condition (ordinary wear and tear excepted), and costs of recovering possession from a tenant who fails in bad faith to vacate. Landlord bears the burden of proof. Iowa Code § 562A.12(3) |
| North Dakota | One month's rent. Up to two months' rent allowed from a tenant with a felony conviction (as an incentive to rent) or with a prior judgment for violating a rental agreement. A separate pet deposit (not for service/assistance animals) may not exceed the greater of $2,500 or two months' rent. N.D.C.C. § 47-16-07.1(1)-(2) | Within 30 days after the lease ends and the tenant delivers possession N.D.C.C. § 47-16-07.1(3) | Any portion not returned must be itemized; the itemization, the amount due, and a written notice stating any amount still owed or refund due must be delivered or mailed within 30 days. Allowed deductions: damage from the tenant's pet or negligence of the tenant/guests, unpaid rent, and cleaning/repairs needed to restore the unit to move-in condition, reasonable wear and tear excepted. N.D.C.C. § 47-16-07.1(3) |
| South Dakota | One month's rent, unless landlord and tenant agree to a larger deposit where special conditions pose a danger to maintenance of the premises. SDCL 43-32-6.1 | 21 days after the tenancy ends and the landlord receives the tenant's mailing address or delivery instructions: return the deposit or give a written statement of the specific reasons for withholding. SDCL 43-32-24 | Written statement of the specific reason for any withholding within 21 days; if the tenant requests it, an itemized accounting of any amount withheld within 45 days after the tenancy ends. Deductions are limited to unpaid rent, other money owed under an agreement, and restoring the premises to move-in condition (ordinary wear and tear excepted). SDCL 43-32-24 |
| Wisconsin | No statutory cap on the amount of a security deposit. Wis. Admin. Code ATCP 134.06; Wis. Stat. § 704.28 | 21 days. If the tenant leaves on the termination date, the clock starts on that date. If the tenant leaves or is evicted early, it starts on the termination date, or when a new tenancy begins if the landlord re-rents first. If the tenant leaves after the termination date, it starts when the landlord learns the tenant has left or been removed. Wis. Stat. § 704.28(4); Wis. Admin. Code ATCP 134.06(2) | If anything is withheld, the landlord must give a written statement describing each item of damage or claim and the amount withheld for it, within the same 21-day deadline and by the same delivery method as the deposit. Normal wear and tear may never be deducted. Deductions not listed in § 704.28(1) are allowed only through a separate 'NONSTANDARD RENTAL PROVISIONS' document. Wis. Admin. Code ATCP 134.06(3)-(4); Wis. Stat. § 704.28(1)-(2) |
City rules that may add to state law
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Minnesota Security Deposit Law FAQ
How much can a landlord charge for a security deposit in Minnesota?
No statewide cap on the amount of a security deposit. (Minn. Stat. § 504B.178)
How long does a landlord have to return a security deposit in Minnesota?
Within three weeks after the tenancy ends (and after the landlord receives the tenant's mailing address or delivery instructions), return the deposit with interest or give a written statement of reasons for withholding. Within 5 days if the tenant must leave because the building is legally condemned (unless the tenant's own willful, malicious, or irresponsible conduct caused it). (Minn. Stat. § 504B.178, subd. 3)
Does a landlord in Minnesota have to give an itemized list of deposit deductions?
If any amount is withheld, the landlord must give a written statement showing the specific reason for the withholding. Deductions are limited to amounts reasonably necessary to cover rent or other payment defaults by the tenant, or to restore the unit to its move-in condition, ordinary wear and tear excepted. (Minn. Stat. § 504B.178, subd. 3)
Does a landlord have to pay interest on a security deposit in Minnesota?
Yes. 1% per year simple, noncompounded interest, from the first day of the month after full payment of the deposit until the last day of the month the landlord complies with the return/statement requirement. Interest amounts under $1 are excluded. (Minn. Stat. § 504B.178, subd. 2)
What happens if a landlord in Minnesota wrongfully keeps a security deposit?
If the landlord fails to provide the written statement on time (or fails to do the required inspections when requested), the landlord owes the amount withheld plus interest as a penalty, in addition to returning the wrongfully withheld amount with interest (effectively double). Bad-faith retention adds punitive damages of up to $500 per deposit. (Minn. Stat. § 504B.178, subds. 4 and 7)
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.