Minnesota Security Deposit Demand Letter
In Minnesota a landlord must return your deposit or a written statement of the reason for withholding within three weeks. A landlord who withholds part can owe that amount again as a penalty. Attorney review available.
Introduction
A security deposit demand letter is a written demand a Minnesota tenant sends a former landlord to recover a security deposit that has not been returned, before filing in conciliation court. In Minnesota the landlord must, within three weeks after the tenancy ends and after receiving the tenant mailing address or delivery instructions, either return the deposit with interest or furnish a written statement showing the specific reason for withholding any part of it (Minn. Stat. 504B.178, subd. 3(a)); compliance is measured by the date the deposit or statement is placed in first class mail (subd. 3(b)). The landlord may withhold only amounts reasonably necessary to remedy rent defaults or other funds due, and to restore the premises to their condition at the start of the tenancy, ordinary wear and tear excepted (subd. 3(b)). A landlord who fails to return the deposit or account on time is liable for damages equal to the portion withheld plus interest, as a penalty, in addition to the portion wrongfully withheld (subd. 4), and bad-faith retention adds punitive damages not to exceed $500 for each deposit (subd. 7). If the demand is ignored, a Minnesota tenant can sue in conciliation court for up to $20,000 (Minn. Stat. 491A.01), and the deadline to sue on a written lease is six years (Minn. Stat. 541.05). DocDraft builds your Minnesota security deposit demand letter from your facts, with attorney review available before you send it.
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Key Things to Know
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A security deposit demand letter is a written demand a Minnesota tenant sends a former landlord to recover a deposit withheld past the state deadline, before taking the landlord to conciliation court.
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The landlord must, within three weeks after the tenancy ends and after receiving the tenant mailing address, either return the deposit with interest or furnish a written statement of the specific reason for withholding it (Minn. Stat. 504B.178, subd. 3(a)); mailing the deposit or statement on time is sufficient compliance (subd. 3(b)).
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Whenever the landlord keeps any part of the deposit, the landlord must give the tenant a written statement showing the specific reason for the withholding (Minn. Stat. 504B.178, subd. 3(a)).
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A Minnesota landlord may withhold only amounts reasonably necessary to remedy tenant defaults in rent or other funds due under an agreement, and to restore the premises to their condition at the start of the tenancy, ordinary wear and tear excepted (Minn. Stat. 504B.178, subd. 3(b)).
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Ordinary wear and tear may not be charged against the deposit; restoration is limited to the condition at the commencement of the tenancy, ordinary wear and tear excepted (Minn. Stat. 504B.178, subd. 3(b)).
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A landlord who fails to return the deposit or account on time is liable for damages equal to the portion withheld plus interest, as a penalty, in addition to the portion wrongfully withheld and interest (Minn. Stat. 504B.178, subd. 4).
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Bad-faith retention of the deposit adds punitive damages not to exceed $500 for each deposit (Minn. Stat. 504B.178, subd. 7); a tenant may sue in conciliation court for up to $20,000 (Minn. Stat. 491A.01), and the deadline to sue on a written lease is six years (Minn. Stat. 541.05).
Key decisions before you file
Before you file a Security Deposit Demand Letter in Minnesota, a few decisions shape the document: which option to choose and what each one means. The Security Deposit Demand Letter guide walks through them.
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Minnesota Requirements for Security Deposit Demand Letter
Three-Week Return or Written Statement Deadline
In Minnesota the landlord must, within three weeks after the tenancy ends and after receiving the tenant mailing address, either return the deposit with interest or furnish a written statement of the specific reason for withholding it (Minn. Stat. 504B.178, subd. 3(a)). Your demand letter should state that this deadline has passed.
Written Statement of the Specific Reason for Withholding
Whenever a Minnesota landlord keeps any part of the deposit, the landlord must furnish the tenant a written statement showing the specific reason for the withholding (Minn. Stat. 504B.178, subd. 3(a)). The statute requires the written reason but sets no dollar threshold for attaching bills or receipts.
Permitted Deductions
A Minnesota landlord may withhold only amounts reasonably necessary to remedy tenant defaults in rent or other funds due under an agreement, and to restore the premises to their condition at the start of the tenancy (Minn. Stat. 504B.178, subd. 3(b)). Withholding outside these categories can be disputed.
No Deduction for Ordinary Wear and Tear
Restoration of the premises is limited to their condition at the commencement of the tenancy, ordinary wear and tear excepted (Minn. Stat. 504B.178, subd. 3(b)). Charges for normal use, such as worn carpet or faded paint, are not proper deductions.
Mailing-Date Compliance
Compliance is measured by the mailing date, not receipt: a deposit or written statement placed in first class United States mail, postage prepaid and properly addressed within the three weeks, is sufficient compliance (Minn. Stat. 504B.178, subd. 3(b)).
Penalty Equal to the Amount Withheld
A landlord who fails to return the deposit or account on time is liable for damages equal to the portion withheld plus interest, as a penalty, in addition to the portion wrongfully withheld and interest (Minn. Stat. 504B.178, subd. 4).
Bad-Faith Punitive Damages Up to $500
Bad-faith retention of the deposit adds punitive damages not to exceed $500 for each deposit, in addition to the subdivision 4 damages (Minn. Stat. 504B.178, subd. 7). Bad faith is presumed if the landlord failed to comply with the return or statement duties unless the deposit is returned within two weeks after suit is filed.
Conciliation Court Limit and Deadline to Sue
If the demand is ignored, a Minnesota tenant may sue in conciliation court for up to $20,000 (Minn. Stat. 491A.01). The deadline to sue on a written lease is six years (Minn. Stat. 541.05), though filing promptly after the demand is the practical course.