## Security deposits in Minnesota Most rental disputes end up being about security deposits. Minnesota regulates how much landlords can collect, where they hold it, and when they must return it. ### Minnesota rules - **Maximum amount:** No statutory limit - **Return deadline after move-out:** 21 days (3 weeks) ## What landlord can deduct Generally allowed: - **Past-due rent** - **Damage beyond ordinary wear and tear** - **Cleaning costs** (if specified in lease + reasonable) - **Lease-violation costs** - **Late fees** (if in lease + reasonable) Generally NOT allowed: - **Normal wear and tear** (carpet wear, paint fading, minor scuffs) - **Pre-existing damage** documented at move-in - **Routine cleaning** in absence of lease provision - **Repairs the landlord should have done as part of normal maintenance** - **Improvements / upgrades** - **Out-of-state tenant pursuit costs** ## Where landlord must hold the deposit Many states require: - **Separate escrow / trust account** (CT, DC, FL, GA, IA, KY, MD, MA, MI, MN, NJ, NH, NY, NC, OK, PA, TN, etc.) - **Interest on deposit** must be paid to tenant in some states (CT, FL, IL, MA, MN, NJ, NY, etc.) - **Notice to tenant** of deposit location in some states ## Move-in / move-out inspections **Best practice (and legal requirement in many states):** - Move-in inspection with detailed condition report - Photos of every room - Both parties sign documenting condition - Move-out inspection in tenant's presence - Tenant gets opportunity to fix issues identified Without a move-in inspection, landlord has hard time proving damage. ## Itemized statement of deductions Most states require: - **Written itemized list** of deductions - **Receipts / estimates** for repairs - **Sent to tenant within statutory deadline** - **Forwarding address** required from tenant Landlord failing to provide itemized statement may forfeit right to deductions entirely (in many states). ## Penalties for landlord violations Common consequences: - **Forfeit any deductions** — return full deposit - **Double / triple damages** in many states - **Statutory penalties** ($100-$500 per violation) - **Attorney's fees** to tenant - **Punitive damages** for bad-faith violations ## Recovering improperly withheld deposits Tenant options: 1. **Demand letter** to landlord with state law citations 2. **Small claims court** — most deposit disputes 3. **State landlord-tenant court** — formal claim 4. **Tenant's-rights organizations** — legal aid 5. **Class action** if landlord systematically withholds ## Documentation that helps tenants - **Move-in inspection** photos / report - **Receipts** for cleaning / repairs done before move-out - **Photos at move-out** - **Lease + addenda** - **Communications with landlord** (saved emails, texts) - **Forwarding address** in writing to landlord - **Witnesses** to condition at move-out ## Wear and tear vs damage **Normal wear and tear (NOT deductible):** - Minor carpet wear paths - Paint fading / minor scuffs - Worn appliance parts - Minor wear on fixtures - Worn flooring in high-traffic areas - Faded curtains / blinds **Damage (deductible):** - Burn marks - Pet stains / odors - Holes in walls - Broken fixtures - Excessive cleaning needed - Carpet stains beyond normal use - Water damage from negligence ## Good landlord practices - Detailed move-in inspection with photos - Clear lease provisions on cleaning - Get tenant's forwarding address at move-out - Detailed itemized accounting - Send certified mail with tracking - Reasonable repair estimates - Don't deduct for wear and tear ## What you should do If you're a tenant in Minnesota with a security deposit dispute: send written demand citing state law, then file in small claims court if not resolved. Most cases are tenant-friendly with good documentation. If you're a landlord: follow procedures carefully — penalties for non-compliance often exceed any legitimate deductions. --- *This guide is general information about Minnesota law as of early 2026 and is not legal advice. Security deposit law is detail-specific. Talk to a licensed Minnesota landlord-tenant attorney for complex disputes.*