What is the security deposit limit in Minnesota?
Minnesota state law does not limit the amount a landlord may charge as a security deposit. However, under Minn. Stat. § 504B.178, landlords must return the deposit within 21 days of the end of the tenancy (or within 5 days if the tenant vacates due to legal condemnation of the building). Deposits earn simple noncompounded interest at 1% per annum, calculated from the first day of the month following full payment until the landlord complies with return requirements. Interest amounts under $1 are excluded. Landlords may only withhold amounts necessary for unpaid rent or to restore the premises to their original condition, excluding normal wear and tear. Failure to comply can result in damages equal to the withheld amount plus interest, plus punitive damages up to $500.