Security Deposit Law in Minnesota (Minn. Stat. § 504B.178): Deadline and Penalty
In Minnesota, a landlord has 21 calendar days (ordinary termination (three weeks = 21 days)) or 5 calendar days (the building was legally condemned) to return a security deposit. The deadline is measured from this trigger: 21 calendar days (ordinary termination (three weeks = 21 days)): after termination of the tenancy and after receipt of the tenant's mailing address or delivery instructions; 5 calendar days (the building was legally condemned): after tenant leaves due to legal condemnation of the building/dwelling for reasons not due to willful, malicious, or irresponsible conduct of the tenant, and after receipt of mailing address or delivery instructions. The verified penalty formula is failure to provide timely written statement (or other listed duties) = liability for the withheld portion plus interest as a penalty, in addition to the portion wrongfully withheld plus interest; separate bad-faith punitive damages up to $500 per deposit under Minn. Stat. § 504B.178.
Key facts
| Deadline | 21 calendar days (ordinary termination (three weeks = 21 days)); trigger: after termination of the tenancy and after receipt of the tenant's mailing address or delivery instructions |
|---|---|
| Deadline (branch 2) | 5 calendar days (the building was legally condemned); trigger: after tenant leaves due to legal condemnation of the building/dwelling for reasons not due to willful, malicious, or irresponsible conduct of the tenant, and after receipt of mailing address or delivery instructions |
| Penalty formula | failure to provide timely written statement (or other listed duties) = liability for the withheld portion plus interest as a penalty, in addition to the portion wrongfully withheld plus interest; separate bad-faith punitive damages up to $500 per deposit |
| Bad faith required | No |
| Statute citation | Minn. Stat. § 504B.178 |
Statute says
Every landlord shall: (1) within three weeks after termination of the tenancy; or (2) within five days of the date when the tenant leaves the building or dwelling due to the legal condemnation of the building or dwelling in which the tenant lives for reasons not due to willful, malicious, or irresponsible conduct of the tenant, and after receipt of the tenant's mailing address or delivery instructions, return the deposit to the tenant, with interest thereon as provided in subdivision 2, or furnish to the tenant a written statement showing the specific reason for the withholding of the deposit or any portion thereof.
What this means
Read the deadline, trigger, and penalty together. Match the date you can prove to the trigger above, then compare the landlord's response to the rule in Minn. Stat. § 504B.178.
Free Minnesota template, built from verified state data
I rented [rental property address] from [lease start date] to [move-out date]. I paid a security deposit of $[amount]. I returned the keys on [date] and gave you my forwarding address in writing on [date]. Under Minnesota law (Minn. Stat. § 504B.178), a landlord must return the deposit or respond in writing within [21 calendar days / 5 calendar days, see the note above] after [the event listed in the note above].
FAQ
Does Minneapolis have its own security deposit law?
Minneapolis caps most security deposits at one month's rent (half a month, payable in up to three installments, if the tenant must pay more than first-month rent plus deposit before the end of month one). Referral tenancies may go to 1.5 months. Minneapolis security deposit rules
What is the small claims limit in Minnesota?
See the applicable court limits and jurisdictions in the state court guide. Minnesota small claims courts and filing fees
What happens if a landlord misses the Minnesota deposit deadline?
The verified penalty formula is failure to provide timely written statement (or other listed duties) = liability for the withheld portion plus interest as a penalty, in addition to the portion wrongfully withheld plus interest; separate bad-faith punitive damages up to $500 per deposit under Minn. Stat. § 504B.178. Keep the move-out date, forwarding address records, and any itemized statement before you act.
Does a demand letter change the legal deadline?
No. The deadline is still 21 calendar days (ordinary termination (three weeks = 21 days)) or 5 calendar days (the building was legally condemned). The deadline trigger is 21 calendar days (ordinary termination (three weeks = 21 days)): after termination of the tenancy and after receipt of the tenant's mailing address or delivery instructions; 5 calendar days (the building was legally condemned): after tenant leaves due to legal condemnation of the building/dwelling for reasons not due to willful, malicious, or irresponsible conduct of the tenant, and after receipt of mailing address or delivery instructions. A letter documents the timeline and asks the landlord to resolve the deposit before the next step.
If the deadline passed
Send a letter that documents the demand and keeps your record tied to the verified Minnesota deadline.
build a Minnesota demand letter
If the landlord stays silent, review landlord ignoring the deadline before choosing the next step.