| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent, utilities, late fees
Any other unpaid bills Costs of damage |
| Return Deadline | Usually 21 Days |
| Itemized Deductions | Required |
| Penalty for Late Return | 2x Amount Due + $500 |
For laws on security deposit collections and holdings in Minnesota, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in Minnesota
In Minnesota, the following can be deducted from security deposits:
- Unpaid rent, utilities, and late fees
- Any other unpaid bills
- Costs of damage excluding normal wear and tear
Most states, including Minnesota, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in Minnesota?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in Minnesota?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in Minnesota?
Minnesota landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in Minnesota?
Landlords in Minnesota can charge a cleaning fee except the landlord cannot charge for cleaning done as a result of normal wear and tear.
However, tenants are required to return the rental unit to the same condition as when they moved in. Landlords can make deductions from the security deposit if the tenant left without cleaning the rental unit.
Can the Landlord Charge for Painting in Minnesota?
Minnesota landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in Minnesota
Landlords must return any remaining portion of a security deposit plus interest within 21 days (with some exceptions) after conditions have been met. If deductions are to be made from the security deposit, an itemized statement of deductions must be provided.
How Long Do Landlords Have to Return Security Deposits in Minnesota?
Minnesota landlords have 21 days after the lease term ends and the tenant provides a mailing address (or other delivery instructions) to return any remaining portion of the security deposit plus interest.
However, if the lease ends because of condemnation, the landlord must return the security deposit within 5 days after the tenant vacates the rental unit.
Do Landlords Owe Interest on Security Deposits in Minnesota?
Minnesota law does require landlords to provide interest on held security deposits. The minimum interest rate is 1% per year, except landlords are not required to provide interest if the accrued amount at the end of the lease term is less than $1.
Interest accrues starting on the first day of the next month following the payment of the security deposit. The accrual of interest ends on the earlier of either:
- The last day of the month in which the landlord returns any remaining portion of the security deposit
- The exact date of the entry of a judgment for the security deposit
If a landlord collects a security deposit on January 15th and returns it on December 10th, interest accrues from February 1st to December 31st.
How Do Landlords Give Notice in Minnesota?
If deductions are to be made from the security deposit, an itemized statement of deductions must be sent by U.S. first-class mail to the tenant’s last known address, unless otherwise instructed by the tenant. The notice must have a valid return address and prepaid postage.
Can a Security Deposit Be Used for Last Month’s Rent in Minnesota?
Minnesota law does not forbid the security deposit from being used for any outstanding rent when the landlord makes deductions. However, tenants cannot withhold their last rental payment because they paid a security deposit (unless otherwise stated in the lease agreement).
If a tenant withholds the last rent payment, the landlord is entitled to double their allowable deductions from the security deposit (except unpaid rent) and withhold the interest. However, the landlord must first send a written demand to the tenant to pay rent.
Security Deposit Disputes in Minnesota
If landlords do not return the security deposit or provide an itemized statement of deductions, if any, within the required time period, tenants can file for damages in court up to twice the amount of the deposit due to the tenant (plus $500 for bad faith retention).
If the lease agreement states that the landlord can recover attorneys’ fees in a lawsuit, the tenant can recover attorneys’ fees if they win.
Tenants can also take legal action against a landlord for:
- Unreasonable deductions
- Failure to provide interest
How Can Tenants File a Dispute for a Security Deposit in Minnesota?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $20,000. If the amount is greater, the tenant must file a civil case in District Court.
A small claims case regarding the return of a security deposit must be filed within 2 years.
Cases are filed in the Small Claims Court where the rental property is located or where the defendant lives or has a place of business. An attorney is not required but permitted.
Sources
- 1 Minn. Stat. § 504B.178(3)(b)
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It shall be sufficient compliance with the time requirement of this subdivision if the deposit or written statement required by this subdivision is placed in the United States mail as first class mail, postage prepaid, in an envelope with a proper return address, correctly addressed according to the mailing address or delivery instructions furnished by the tenant, within the time required by this subdivision. The landlord may withhold from the deposit only amounts reasonably necessary:
(1) to remedy tenant defaults in the payment of rent or of other funds due to the landlord pursuant to an agreement; or
(2) to restore the premises to their condition at the commencement of the tenancy, ordinary wear and tear excepted.
Source Link - 2 Minn. Stat. § 504B.178(8)
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No tenant may withhold payment of all or any portion of rent for the last payment period of a residential rental agreement, except an oral or written month to month residential rental agreement concerning which neither the tenant nor landlord has served a notice to quit, or for the last month of a contract for deed cancellation period under section 559.21 or a mortgage foreclosure redemption period under chapter 580, 581, or 582, on the grounds that the deposit should serve as payment for the rent. Withholding all or any portion of rent for the last payment period of the residential rental agreement creates a rebuttable presumption that the tenant withheld the last payment on the grounds that the deposit should serve as payment for the rent. Any tenant who remains in violation of this subdivision after written demand and notice of this subdivision shall be liable to the landlord for the following:
(1) a penalty in an amount equal to the portion of the deposit which the landlord is entitled to withhold under subdivision 3 other than to remedy the tenant’s default in the payment of rent; and
(2) interest on the whole deposit as provided in subdivision 2, in addition to the amount of rent withheld by the tenant in violation of this subdivision.
Source Link - 3 Minn. Stat. § 504B.178(3)(a)
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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.
Source Link - 4 Minn. Stat. § 504B.178(2)
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Any deposit of money shall not be considered received in a fiduciary capacity within the meaning of section 82.55, subdivision 26, but shall be held by the landlord for the tenant who is party to the agreement and shall bear simple noncompounded interest at the rate of one percent per annum, computed from the first day of the next month following the full payment of the deposit to the last day of the month in which the landlord, in good faith, complies with the requirements of subdivision 3 or to the date upon which judgment is entered in any civil action involving the landlord’s liability for the deposit, whichever date is earlier. Any interest amount less than $1 shall be excluded from the provisions of this section.
Source Link - 5 Minn. Stat. § 504B.178(4)
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Any landlord who fails to:
(1) provide a written statement within three weeks of termination of the tenancy;
(2) provide a written statement 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;
(3) transfer or return a deposit as required by subdivision 5; or
(4) provide the tenant with notice for an initial inspection and move-out inspection as required by section 504B.182, and complete an initial inspection and move-out inspection when requested by the tenant,
after receipt of the tenant’s mailing address or delivery instructions, as required in subdivision 3, is liable to the tenant for damages in an amount equal to the portion of the deposit withheld by the landlord and interest thereon as provided in subdivision 2, as a penalty, in addition to the portion of the deposit wrongfully withheld by the landlord and interest thereon.
Source Link - 6 Minn. Stat. § 504B.178(7)
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The bad faith retention by a landlord of a deposit, the interest thereon, or any portion thereof, in violation of this section shall subject the landlord to punitive damages not to exceed $500 for each deposit in addition to the damages provided in subdivision 4. If the landlord has failed to comply with the provisions of subdivision 3 or 5, retention of a deposit shall be presumed to be in bad faith unless the landlord returns the deposit within two weeks after the commencement of any action for the recovery of the deposit.
Source Link - 7 Minn. Stat. § 504B.172
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If a residential lease specifies an action, circumstances, or an extent to which a landlord, directly, or through additional rent, may recover attorney fees in an action between the landlord and tenant, the tenant is entitled to attorney fees if the tenant prevails in the same type of action, under the same circumstances, or is entitled to costs under section 549.02, and to the same extent as specified in the lease for the landlord.
Source Link
- 8 Minn. Stat. § 491A.01(3a)(a)
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Except as provided in subdivisions 4 and 5, the conciliation court has jurisdiction to hear, conciliate, try, and determine civil claims if the amount of money or property that is the subject matter of the claim does not exceed:
(1) $20,000; or
(2) $4,000, if the claim involves a consumer credit transaction.
Source Link
- 9 Minn. Stat. § 541.07(2)
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Except where the Uniform Commercial Code, this section, section 541.05, 541.073, 541.076, or 604.205 otherwise prescribes, the following actions shall be commenced within two years:
…
(2) upon a statute for a penalty or forfeiture, except as provided in sections 541.074 and 541.075.
Source Link
