Updated 2026 · Minnesota Law

Security Deposit Laws in Minneapolis, Minnesota (2026)

Under Minn. Stat. § 504B.178, landlords in Minneapolis must return your security deposit within 21 days after you vacate the unit. Failure to comply entitles you to the deposit plus statutory penalties. This page is a plain-language reference to Minnesota's security deposit statute as it applies to Minneapolis renters. Minneapolis has additional tenant protections under local ordinance, including restrictions on criminal background screening in housing applications.

21

Days to Return

Up to 2× deposit

Penalty

$15,000

Small Claims Limit

Minnesota Security Deposit Statute — Quick Reference

Return Deadline

21 days after tenancy ends — 3 weeks after termination or receipt of forwarding address, whichever is later; must pay interest on all deposits

Penalty

Liable for double the amount wrongfully withheld plus interest; bad faith adds punitive damages up to $500

Interest Required

Yes — 1% simple interest (All deposits (interest under $1 excluded))

Small Claims Limit

$15,000

Filing Fee

$35–$75

The 21-Day Return Deadline in Detail

Under Minn. Stat. § 504B.178, a Minneapolis landlord has 21 calendar days after the tenancy ends to return your security deposit. If the landlord makes deductions, they must provide a written, itemized statement of each deduction along with copies of receipts, invoices, or estimates supporting each charge.

Important: 3 weeks after termination or receipt of forwarding address, whichever is later; must pay interest on all deposits. The clock starts when the tenancy legally terminates — typically your move-out date or lease end date, whichever is later. To protect your rights, provide your forwarding address in writing on or before your move-out date.

Penalty for Violation

Minnesota Statutory Penalty

Liable for double the amount wrongfully withheld plus interest; bad faith adds punitive damages up to $500

Cite: Minn. Stat. § 504B.178

Double the amount wrongfully withheld plus interest; bad faith adds punitive damages up to $500. To recover these penalties, file in small claims court in Minneapolis's jurisdiction. You may also send a formal demand letter first — many landlords return deposits once they receive a written legal demand citing the applicable statute.

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Small Claims Court — Minnesota

Maximum claim$15,000
Filing fee$35–$75
Attorneys allowedNo — self-represented
Typical hearing3060 days after filing
Recover filing feeYes, if you win

How to find your court

File at the District Court (Conciliation Court division) in the county where the property is located.

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Minneapolis Security Deposit FAQ

How long does a Minneapolis landlord have to return my security deposit?

21 days after you vacate the unit and provide your forwarding address, under Minn. Stat. § 504B.178(3). The landlord must return the deposit with a written statement explaining any deductions. If no deductions are made, the full deposit must arrive within 21 days. Minnesota's 21-day timeline is among the shorter deadlines in the country.

What is the penalty if my Minneapolis landlord wrongfully withholds my deposit?

Under Minn. Stat. § 504B.178(3)-(4), a landlord who fails to return the deposit within 3 weeks is liable for the amount wrongfully withheld plus a penalty equal to that amount (effectively double), plus interest. Under Subd. 7, bad faith retention adds punitive damages up to $500. Retention is presumed bad faith if the landlord missed the deadline, unless the deposit is returned within 2 weeks of the tenant filing suit.

Does my Minneapolis landlord have to pay interest on my security deposit?

Yes, on all deposits, under Minn. Stat. § 504B.178(2). The interest rate is 1% simple, non-compounding interest per year (interest under $1 is excluded). Interest accrues from the first day of the next month following full payment of the deposit. Landlords must either pay this interest annually or deduct it from the final month's rent. Failure to pay required interest entitles the tenant to the deposit amount plus interest in a legal action.

What must a Minnesota landlord include in the deposit deduction statement?

Minnesota requires the landlord to send a written statement that specifies the reason for each deduction and the dollar amount. The statement must be sent to the tenant's last known address or forwarding address. Landlords who fail to provide this itemized statement within 21 days lose the right to retain any portion of the deposit.

How do I sue my Minneapolis landlord in small claims court for my deposit?

File at Hennepin County District Court, Conciliation Court division. Minnesota calls small claims 'Conciliation Court.' The limit is $15,000 — the highest of any state covered here. Filing fees are $35–$75. Attorneys are not permitted to represent parties in Conciliation Court. If you prevail, you can recover the deposit plus interest plus up to $500 in punitive damages.

Related Resources

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This page is a general legal reference for informational purposes only and does not constitute legal advice. Security deposit laws may change; always verify the current statute before taking action. Full disclaimer →