Deposits in Minnesota run on a few numbers: the maximum your landlord can charge, the return deadline that starts when you surrender the keys, and — when it applies — interest the law says the deposit earns while it sits in their account. All three are below, with the statute behind each.
| Max deposit | No statutory cap No statutory cap. |
|---|---|
| Return deadline | 21 days after you give up possession 21 days after move-out (5 days if the tenancy ended by property abatement). |
| Interest on deposit | Required Yes — 1% simple. The requirement applies after the first year of tenancy. Deposits held longer than one year earn 1% simple interest unless the lease says otherwise. Run your own tenancy through the calculator to turn the rule into dollars. |
| Statute | Minn. Stat. § 504B.178 |
No statutory cap. Whatever the cap, the deposit remains your money: the cap limits the request, and the sections below limit what can happen to it afterward.
Minnesota landlords have 21 days from when you give up possession — normally the day you return all keys — to either refund the deposit or send the written itemization that state law requires. 21 days after move-out (5 days if the tenancy ended by property abatement). Mark the date on your calendar the day you move; a deadline that passes without refund or statement is what converts an awkward wait into a legal claim.
Yes — 1% simple. The requirement applies after the first year of tenancy. Deposits held longer than one year earn 1% simple interest unless the lease says otherwise. Run your own tenancy through the calculator to turn the rule into dollars.
Like nearly every state, Minnesota lets landlords charge for real damage and unpaid costs — but not for normal wear and tear. Faded paint, worn carpet in a walkway, and small nail holes from picture hangers are the landlord's cost of doing business; broken fixtures, uncleaned appliances, and unpaid rent are chargeable. When deductions are taken, Minnesota requires them in writing — so photograph the unit at move-out and keep the timestamped set until the money arrives. Every line item can then be checked against how the unit actually looked, which is how inflated deductions get beaten.
Tenants can sue for the deposit plus penalties in housing court. The route is almost always the same: a written demand letter citing the deadline and Minn. Stat. § 504B.178, then small claims court in the county where the unit sits. Filings are cheap, lawyers aren't required, and landlords who ignored two letters usually settle the week a court date appears.
Three moves protect a Minnesota deposit: (1) compare the deposit you're being asked for against the cap above before you sign; (2) photograph the unit at move-in and again at move-out — documentation settles most disputes before they start (our interactive checklist walks you through it); (3) the day you return keys, write the deadline on your calendar and send your forwarding address in writing. If that date passes in silence, the demand letter template takes about ten minutes, and small claims court is the next stop.
Cap check, your personal deadline date, and the interest your deposit earned — in about twenty seconds.
This page summarizes Minn. Stat. § 504B.178 as last reviewed October 5, 2026. Laws and locally announced rates change — confirm current figures with the Minnesota housing authority or attorney general's consumer site before relying on them.