Minnesota Security Deposit Rules (2026): The 21-Day Deadline, Interest and Move-Out Inspections

Minnesota’s deposit law pays renters interest, sets a three-week deadline, and since 2024 gives tenants the right to ask for a move-in and a move-out inspection. Used together, those rules make it much harder for a deposit to disappear in cleaning charges. This guide explains them in plain English and sets out a move-out plan that protects your money.

Minnesota deposit rules at a glance

• Return deadline: within three weeks (21 days) after the tenancy ends and the landlord receives your mailing address or delivery instructions (Minn. Stat. 504B.178)
• Interest: the deposit earns 1% simple interest a year, paid with the refund
• Written statement: if anything is kept, the landlord must give the specific reasons in writing within the same deadline
• What can be kept: unpaid rent or other amounts owed under the lease, and what is reasonably needed to restore the unit to its move-in condition, ordinary wear and tear excepted
• Burden of proof: in a dispute, the landlord must prove the reason for withholding
• Bad faith: a deposit kept in bad faith can cost the landlord the amount withheld plus interest and punitive damages of up to $500
• Inspections: tenants can ask for an initial inspection and a move-out inspection (Minn. Stat. 504B.182)
• Cap: Minnesota sets no statewide limit on the size of a deposit

Laws change, so check the current statute before you rely on any deadline.

The two inspections, and how to use them

Initial inspection. Your landlord must tell you, at the start of the tenancy or within 14 days of move-in, that you can ask for an initial inspection. If you ask, you schedule it together and record existing problems so they can’t be charged to you later. With your agreement, the landlord can instead acknowledge in writing your photos or video of the unit’s condition.

Move-out inspection. Once either side gives notice to end the tenancy, the landlord must tell you in writing that you can ask for a move-out inspection and attend it. It takes place no earlier than five days before you leave, so you have time to fix what is found. If you decline, the landlord’s duty ends there. A landlord who fails to give these notices or to carry out a requested inspection can be liable for damages.

Why your mailing address matters

The three-week deadline only starts once the landlord has your mailing address or delivery instructions. Put it in an email and a short letter, keep copies, and include it when you return the keys. A forwarding order with the post office is a useful backup, but it is not a substitute for telling the landlord directly. If you are moving out of state, give an address where mail will actually reach you.

Don’t use the deposit as last month’s rent

It is tempting to skip the last month’s rent and tell the landlord to keep the deposit. Minnesota law treats that as withholding rent: a tenant who does it can be liable for the amount withheld and a penalty. Pay the rent, then use the inspections and a proper clean to get the deposit back in full. If you are worried about getting the deposit back, the move-out inspection is the better tool: it shows you in advance what the landlord expects.

How the interest works

Interest runs at 1% a year, simple rather than compounded, from the first day of the month after the deposit was paid in full until the landlord complies. On a typical deposit held for a year or two it is a small amount, but it is yours, and it should be included in the refund or the written statement. Amounts under a dollar are excluded.

What can and cannot be deducted

Common move-out items and how they are usually treated

Item	Usually
Faded paint, light scuffs	Ordinary wear and tear
Carpet worn in walkways	Ordinary wear and tear
A few small nail holes	Ordinary wear and tear
Oven caked with grease, dirty fridge	Can be charged to restore move-in condition
Pet stains, odors or damage	Can be charged
Furniture, trash or food left behind	Can be charged for removal

Cleaning is not named in the statute. In practice, a landlord can charge for cleaning that brings the unit back to how clean it was at the start, but not to make it cleaner than that, which is why the initial inspection and your own photos are so valuable.

If your deposit isn’t returned

Count three weeks from the end of the tenancy or the date the landlord received your address, whichever is later. If nothing has arrived, write to the landlord quoting Minn. Stat. 504B.178, and keep a copy. Most disputes settle at this stage. If they do not, conciliation (small claims) court handles most deposit cases, and the Minnesota Attorney General’s landlord-tenant handbook and legal aid organizations explain the process. This guide is general information, not legal advice; check the current statute.

Renting on the Wisconsin side?

If your rental is across the St. Croix in Hudson, River Falls or nearby, Wisconsin rules apply instead, with a 21-day deadline, a 7-day check-in sheet and no interest. Read our Wisconsin deposit guide.

A move-out plan that protects your deposit

• When you give notice: ask in writing for a move-out inspection, and book your clean for the day after the movers
• One week out: take paint, chemicals and electronics to a county household hazardous waste site
• Inspection day: walk through with the landlord, note everything, and add it to your cleaning booking
• The day before: defrost and empty the fridge and freezer
• Moving day: remove everything, including the basement storage, garage stall and locker
• Cleaning day: kitchen and appliances, bathrooms, radiators and registers, baseboards, tracks and floors, then photograph each room
• Hand-back: return all keys, fobs and openers, give your mailing address in writing and note the date

Roommates and shared deposits

When several people share one lease, the landlord usually returns one deposit with one statement. Agree in writing at the start how a refund or deduction will be split and who books the move-out clean, and make sure everyone gives the same mailing address for the refund.

Common mistakes that cost renters money

• Not asking for the initial or move-out inspection
• No mailing address in writing
• Leaving the fridge full or the freezer iced up
• Forgetting the storage locker or garage stall
• Skipping the last month’s rent and expecting the deposit to cover it

What a move-out clean covers

Our move-out cleaning starts at $190 and follows the checklist Minnesota landlords use: inside the oven, fridge and cabinets, bathrooms descaled, radiators, registers and baseboards wiped, window tracks cleared and floors vacuumed and mopped, with the basement on request. If anything on the checklist is missed, tell us within 36 hours and we come back to put it right. Carpet cleaning is not offered in the Twin Cities area.

See what Twin Cities move-out cleans actually cost, check move-out cleaning across the Twin Cities, or get a free quote.