Minnesota Statute 504B.178 caps security deposits at no specific amount but requires landlords return deposits within 21 days of lease termination with itemized deductions. Landlords must pay 1% annual interest on held deposits and face triple damages plus $500 punitive damages for bad-faith withholding.
Minn. Stat. 504B.178 governs all security deposits in Hennepin County. While Minnesota does not cap the amount, most landlords charge one to two months' rent. Landlords must hold deposits separately and pay 1% simple interest annually. Within 21 days of move-out and tenant providing forwarding address, landlords return the balance with written itemization of any deductions. Bad-faith retention triggers court awards of double or triple the wrongfully withheld amount plus $500 punitive damages and attorney fees. Minneapolis adds extra rules requiring landlords accept multiple deposit installment plans for tenants paying with housing vouchers.
Bad-faith withholding leads to court judgments of double or triple the deposit plus $500 punitive damages, attorney fees, and potential city license discipline in Minneapolis.
See how Bloomington's security deposit rules rules stack up against other locations.
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