Saint Paul, MN Rental Property Rules: Security Deposit Rules (2026)
Key Facts
- Statute
- Minn. Stat. § 504B.178
- Interest
- 1% per year
- Return deadline
- 21 days after move-out
- Wear and tear
- Not deductible
Summary
Minnesota Statutes Chapter 504B controls security deposits for Saint Paul rentals, requiring interest at 1% per year, return within 21 days of move-out, and itemized written deductions for any withholding.
504B.178 INTEREST ON SECURITY DEPOSITS; WITHHOLDING SECURITY DEPOSITS; DAMAGES; LIMIT ON WITHHOLDING LAST MONTH'S RENT. Subdivision 1. Applicability. Any deposit of money, the function of which is to secure the performance of a residential rental agreement or any part of such an agreement, other than a deposit which is exclusively an advance payment of rent, shall be governed by the provisions of this section. Subd. 2. Interest. Any deposit of money shall not be considered received in a fiduciary capacity within the meaning of section 82.55, subdivision 26, but shall be held by the landlord for the tenant who is party to the agreement and shall bear simple noncompounded interest at the rate of one percent per annum, computed from the first day of the next month following the full payment of the deposit to the last day of the month in which the landlord, in good faith, complies with the requirements of subdivision 3 or to the date upon which judgment is entered in any civil action involving the landlord's liability for the deposit, whichever date is earlier. Any interest amount less than $1 shall be excluded from the provisions of this section. Subd. 3. Return of security deposit.
(a) Every landlord shall:
(1) within three weeks after termination of the tenancy; or
(2) within five days of the date when the tenant leaves the building or dwelling due to the legal condemnation of the building or dwelling [...] return the deposit to the tenant, with interest thereon as provided in subdivision 2, or furnish to the tenant a written statement showing the specific reason for the withholding of the deposit or any portion thereof.
Full Breakdown
Saint Paul follows Minnesota's statewide security-deposit framework rather than imposing a separate city cap. Under Minn. Stat. § 504B.178, landlords must accrue 1% simple interest annually on deposits and return them within 21 days of move-out, with an itemized list of any deductions. Withholding for ordinary wear and tear is not allowed. Tenants may sue for the deposit plus a punitive amount equal to the bad-faith withholding. Saint Paul's rental-licensing process informs tenants of these rights at move-in via DSI tenant materials.
Violations & Fines
Bad-faith withholding can expose landlords to recovery of the deposit plus an equal punitive amount, plus court costs and attorney fees in some cases.
Frequently Asked Questions
Is there a maximum deposit amount in Saint Paul?
How do I get my interest paid?
Sources & Official References
Other rules in Saint Paul
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