How much a landlord can charge, and which deductions are actually legal
This page covers how much a landlord may charge in Minnesota, and which deductions from a residential deposit are lawful. It assumes the tenancy has ended and the question is what may be withheld.
It does not cover:
No statewide cap. Minnesota imposes no statutory limit on the amount of a security deposit under § 504B.178. (A landlord may not, however, require a tenant to use the deposit to pay the last month's rent in violation of Subd. 8.)
Caps frequently carry exceptions — smaller landlords, furnished units, or pets are treated differently in most states. Read the provision itself rather than relying on the headline figure.
| Claimed deduction | Permitted in Minnesota |
|---|---|
| Amounts reasonably necessary to remedy tenant defaults in payment of rent or other funds due | Permitted, if substantiated |
| Amounts reasonably necessary to restore the premises to their condition at the start of the tenancy, ordinary wear and tear excepted | Permitted, if substantiated |
| Claimed deduction | Permitted in Minnesota |
|---|---|
| Ordinary wear and tear | Not permitted |
| Any amount withheld without a written statement of the specific reason within 3 weeks | Not permitted |
| Any amount withheld after failure to comply with the notice requirements (penalty + bad-faith presumption) | Not permitted |
Whether a specific charge is lawful depends on the facts — how old the damage is, whether the lease addressed it, and whether the landlord can document the cost. A charge being in the "permitted" column does not make it automatically collectable.
In any action concerning the deposit, the burden of proving, by a fair preponderance of the evidence, the reason for withholding all or any portion of the deposit is on the landlord.
In Minnesota the burden sits with the landlord. This matters strategically: if the burden is theirs, your task is to request the documentation rather than to prove the deduction wrong. Minn. Stat. § 504B.178 Subd. 3(c) ↗
A landlord who withholds in bad faith may be liable for 2x the portion wrongfully withheld.
On failure to provide the written statement (or return/transfer the deposit, or provide the required inspections), the landlord is liable for damages equal to the portion of the deposit withheld, as a penalty, in addition to the portion of the deposit wrongfully withheld. This totals roughly 2x the withheld amount: the withheld principal is returned, plus an equal amount as a penalty.
Minn. Stat. § 504B.178 Subd. 4 ↗A flat penalty of $500.
Bad-faith retention of a deposit subjects the landlord to punitive damages not to exceed $500 for each deposit, in addition to the penalty in Subd. 4. If the landlord failed to comply with Subd. 3 or 5, retention is presumed to be in bad faith unless returned within two weeks after commencement of an action.
Minn. Stat. § 504B.178 Subd. 7 ↗Minnesota's return deadline is three weeks after termination of the tenancy — shorter than the 30-day standard in many states. Do not confuse it with 30 days.
Minn. Stat. § 504B.178 Subd. 3(a)(1) ↗On failure to comply, the landlord owes the withheld amount back, plus an equal amount as a penalty — roughly 2x the withheld amount. Bad-faith retention adds punitive damages up to $500 per deposit.
Minn. Stat. § 504B.178 Subd. 4, Subd. 7 ↗Minnesota requires the landlord to pay 1% per annum simple (non-compounded) interest on the deposit, computed from the first day of the next month after full payment of the deposit.
Minn. Stat. § 504B.178 Subd. 2 ↗A deposit claim under a written lease is subject to a 6-year limitations period under Minn. Stat. § 541.05.
Minn. Stat. § 541.05 ↗““I kept the deposit for damages.””
Minnesota requires return of the deposit or a written statement of the specific withholding reason within 3 weeks (21 days). You may withhold only for rent defaults or damage beyond ordinary wear and tear. Provide the statement, or return my deposit with interest.
Minn. Stat. § 504B.178 Subd. 3
““You did not provide a forwarding address.””
I provided my mailing address in writing. The 3-week clock runs from your receipt of that address, and the return/statement obligation now attaches.
Minn. Stat. § 504B.178 Subd. 3(a)
““The deposit covered normal wear.””
Ordinary wear and tear is expressly excepted. You may withhold only amounts reasonably necessary to remedy rent defaults or restore the premises beyond ordinary wear.
Minn. Stat. § 504B.178 Subd. 3(b)(2)
Some widely circulated summaries of Minnesota deposit law state things the statute does not say. We list the disagreements rather than picking a side silently.
| Source | What it says |
|---|---|
| Some generic summaries | 30 days |
| Minn. Stat. § 504B.178 Subd. 3(a)(1) | three weeks (21 days) |
What we follow: 21 days
The statute plainly states "within three weeks after termination of the tenancy." Reporting 30 days overstates the landlord's window.
| Source | What it says |
|---|---|
| Some summaries | 2x the deposit |
| Minn. Stat. § 504B.178 Subd. 4 | withheld amount back + equal penalty (≈2x withheld), plus up to $500 punitive for bad faith |
What we follow: Withheld amount + equal penalty (≈2x withheld)
The statute's structure is "an amount equal to the portion withheld as a penalty, in addition to the portion wrongfully withheld" — keyed to the withheld amount, not the full deposit, with a separate $500 punitive cap for bad faith.
Every figure on this page comes from the official text, not from a summary. The table below lists each provision used and the date it was last checked against the source.
| Statute | Last verified | Source |
|---|---|---|
| Minn. Stat. § 504B.178 Subd. 3(a) | 2026-10-15 | official text ↗ |
| Minn. Stat. § 504B.178 Subd. 4 | 2026-10-15 | official text ↗ |
| Minn. Stat. § 504B.178 Subd. 7 | 2026-10-15 | official text ↗ |
| Minn. Stat. § 504B.178 Subd. 3(c) | 2026-10-15 | official text ↗ |
| Minn. Stat. § 504B.178 Subd. 3(a)(1) | 2026-10-15 | official text ↗ |
| Minn. Stat. § 504B.178 Subd. 4, Subd. 7 | 2026-10-15 | official text ↗ |
| Minn. Stat. § 504B.178 Subd. 2 | 2026-10-15 | official text ↗ |
| Minn. Stat. § 541.05 | 2026-10-15 | official text ↗ |
Primary reference: Minn. Stat. § 504B.178. Where the official text and a secondary summary disagree, this page follows the official text and says so. Amendments are recorded on the site changelog.
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Minnesota Security Deposit Return
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The statute does not permit deductions for: ordinary wear and tear; any amount withheld without a written statement of the specific reason within 3 weeks; any amount withheld after failure to comply with the notice requirements (penalty + bad-faith presumption).
The landlord. In any action concerning the deposit, the burden of proving, by a fair preponderance of the evidence, the reason for withholding all or any portion of the deposit is on the landlord.
No statewide cap. Minnesota imposes no statutory limit on the amount of a security deposit under § 504B.178. (A landlord may not, however, require a tenant to use the deposit to pay the last month's rent in violation of Subd. 8.)
No. Ordinary wear and tear