Minnesota Security Deposit vs. Damage Deposit Rules Explained

Renters in Minnesota often face confusion about the difference between security and damage deposits, and what rules govern each. Understanding how deposits are collected, used, and returned can help you avoid issues with your landlord when moving in or out. This article explains Minnesota’s up-to-date rules so you can protect your rental rights.

Understanding Security and Damage Deposits in Minnesota

In Minnesota, the term “security deposit” is used in the law for all deposits made to a landlord as a condition of renting, regardless of what the landlord calls it. There is no separate legal definition of a "damage deposit"; all such deposits are treated as security deposits under Minnesota law.

• Security Deposit: Money paid to protect the landlord in case the tenant fails to pay rent or damages the property beyond normal wear and tear.
• Damage Deposit: Sometimes called this, but under the law, it’s still considered a security deposit.

What Does Minnesota Law Say?

According to Minnesota Statutes § 504B.178 – Security Deposits, any deposit held by a landlord as a condition of renting residential property is considered a security deposit, regardless of the label. This means all rules for security deposits apply to both types of deposits.

How Much Can a Landlord Charge?

There is no statewide limit in Minnesota on the amount a landlord can request for a security deposit. However, individual leases or local ordinances may set their own rules, so check your lease and city regulations.

When & How Should a Deposit Be Returned?

Landlords in Minnesota must return your security deposit, plus interest, within 21 days after the tenancy ends and the unit is vacated. If any amount is withheld, the landlord must provide a written statement explaining any deductions, such as unpaid rent or damages beyond normal wear and tear.

• If you do not receive your deposit or statement within 21 days, you have the right to take legal action.
• Interest owed will be calculated based on an amount set each year by law. Learn more on the Minnesota Attorney General's guide.

Official Forms and How to Use Them

Currently, Minnesota does not provide a standardized state form for requesting your security deposit back. However, renters can write a demand letter. If you need to take further action, use the following:

• Conciliation Court Claim (Small Claims Court)
  Form: Conciliation Court Statement of Claim and Summons (CCT102)
  Access the official Conciliation Court forms here.
  When to use: If your landlord fails to return your deposit or provide an explanation, file a claim in Conciliation (Small Claims) Court. For example, if 21 days have passed and you have not gotten your money or an itemized statement, fill out this form and submit it to your county court.

Who Handles Deposit Disputes?

Deposit disputes are handled by Minnesota Conciliation Court (Small Claims Court), part of Minnesota's Judicial Branch.

What Can Be Deducted from My Deposit?

• Unpaid rent
• Repair of damage to the unit (beyond normal wear and tear)
• Other reasons listed in your lease, as long as they comply with state law

Landlords cannot deduct for routine cleaning or wear that happens from normal living ("normal wear and tear").

Tips to Protect Your Deposit

• Complete a move-in checklist and take photos of your rental at move-in and move-out
• Keep all rent receipts and correspondence with your landlord

FAQ: Minnesota Deposit Rules

1. What is the difference between a security deposit and a damage deposit in Minnesota?
   Under Minnesota law, both are treated the same way. Any deposit intended to cover damages or unpaid rent is a security deposit, no matter what it’s called in the lease.
2. How long does my landlord have to return my deposit?
   Your landlord must return your security deposit and an itemized statement of any deductions within 21 days after you leave the property.
3. Can my landlord keep my deposit for cleaning?
   Minnesota law says landlords cannot keep deposits for cleaning or normal wear and tear. Only actual damages or unpaid rent can be deducted.
4. What if my landlord doesn’t return my deposit?
   You can file a claim in Conciliation (Small Claims) Court to recover your deposit. Use the official court forms and follow the instructions provided by the Minnesota Judicial Branch.
5. Is there any interest owed on my deposit?
   Yes, Minnesota law requires landlords to pay simple interest on your deposit at a rate set by law, calculated from the date you paid until the date it’s returned.

Need Help? Resources for Renters

• Minnesota Attorney General: Security Deposit Fact Sheet
• Minnesota Housing – Support and rental information
• LawHelpMN: Conciliation Court Security Deposit
• Minnesota Conciliation Court (Judicial Branch)

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1. Minnesota Statutes § 504B.178 – Security Deposits
2. Minnesota Judicial Branch – Conciliation (Small Claims) Court
3. Minnesota Attorney General – Landlord and Tenant Guide

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