How do I dispute a security deposit return in Minnesota?

Minnesota's deposit law is at Minn. Stat. § 504B.178, part of the residential landlord-tenant chapter.

1. 21-Day Return Rule

Within 21 days after termination and the tenant providing a forwarding address, the landlord must return the deposit (with 1% simple annual interest) less an itemized statement of damages (§ 504B.178(3)).

2. 5-Day Rule for Condemned Premises

If the unit was condemned by authorities and the tenant moves out as a result, the return deadline shortens to 5 days (§ 504B.178(5)).

3. Interest Required

The deposit must accrue 1% simple annual interest (formerly higher; reduced by 2003 amendment) (§ 504B.178(2)).

4. Allowed vs. Prohibited Deductions

Permitted: unpaid rent, damages beyond ordinary wear and tear. Prohibited: ordinary wear and tear, routine cleaning, repainting after long tenancies.

5. Penalty for Bad Faith Retention

A landlord who in bad faith retains any portion is liable for the wrongful retention plus a $500 statutory penalty, plus punitive damages up to two times the amount wrongfully withheld (§ 504B.178(7)).

6. Failure to Provide Statement

Failure to provide the itemized statement within 21 days creates a presumption that no deductions were warranted; the entire deposit becomes refundable.

7. Conciliation Court & Limitations

File in Minnesota Conciliation Court (small claims division of district court) — jurisdictional limit $20,000. The statute of limitations is 6 years for written contracts (§ 541.05).

This is legal information, not legal advice.