How to Hold and Return a Security Deposit in Minnesota

Managing a Security Deposit in Minnesota

In Minnesota, there is no legal limit on the amount of money you can charge as a security deposit. The standard amount is one months' rent.

Storing the Deposit

You are required to keep the deposit in an interest-bearing bank account.

Returning the Deposit

You can keep all or some of a subtenant’s security deposit if the unit is returned to you with damages that exceed normal wear and tear or if you need to cover unpaid rent or utilities. You have [21 days](https://www.ag.state.mn.us/consumer/handbooks/lt/CH3.asp#Refund of the Security Deposit) after the end of the sublease term to return the security deposit. You must return the deposit with any interest is has earned as you've held it in the bank. If you do not return the deposit or an explanation stating why any amount is being withheld within 21 days, you must pay the tenant the amount withheld plus interest. If you do not return the deposit at all, the court can fine you $500.