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

  1. 1

    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.

  2. 2

    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)).

  3. 3

    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)).

  4. 4

    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)).

  5. 5

    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)).

  6. 6

    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).

  7. 7

    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.

Open the Security Deposit Demand Letter guide

Customize your Security Deposit Demand Letter Template with DocDraft

[YOUR NAME] [YOUR CURRENT ADDRESS] [CITY, MINNESOTA ZIP] [EMAIL] [PHONE]

[DATE]

[LANDLORD / PROPERTY MANAGER NAME] [LANDLORD ADDRESS] [CITY, MINNESOTA ZIP]

Re: Demand for return of security deposit for [RENTAL ADDRESS, UNIT #], Minnesota

Dear [LANDLORD NAME]:

I rented the property at [RENTAL ADDRESS] in Minnesota from [LEASE START DATE] to [MOVE-OUT DATE], and I paid a security deposit of $[DEPOSIT AMOUNT] at the start of the tenancy. The tenancy ended on [DATE], and I gave you my mailing address at [MAILING ADDRESS] on [DATE].

Under Minnesota Statutes Section 504B.178, subdivision 3(a), you were required, within three weeks after the tenancy ended and after receiving my mailing address, to either return the deposit with interest or furnish a written statement showing the specific reason for withholding any part of it. That deadline has passed, and to date I have received [nothing / only $AMOUNT / a written statement I dispute for the reasons below].

Under subdivision 3(b) a landlord may withhold only amounts reasonably necessary to remedy defaults in the payment of rent or other funds due under our agreement, and to restore the premises to their condition at the start of the tenancy, ordinary wear and tear excepted. Minnesota measures compliance by the date the deposit or written statement is placed in first class mail, so mailing what is owed after the three weeks does not satisfy the deadline (subdivision 3(b)). Any deposit you return is also owed with interest as provided in subdivision 2. The amounts you withheld are improper because [explain: ordinary wear and tear, no written statement of a specific reason, charges beyond rent and restoration, amounts unsupported].

Because you neither returned the deposit with interest nor furnished a proper written statement within the three weeks required by subdivision 3(a), the withheld amount is due.

I am owed $[AMOUNT STILL DUE]. I demand that you send this amount to me at the address above by [DEADLINE DATE, for example 14 days from this letter].

If I do not receive full payment by that date, I intend to file in Minnesota conciliation court, where I may claim up to $20,000 (Minn. Stat. Section 491A.01). Because you withheld the deposit past the statutory deadline, I will also seek damages equal to the portion withheld plus interest, as a penalty, in addition to the amount wrongfully withheld under Section 504B.178, subdivision 4, and up to $500 in punitive damages for bad-faith retention under subdivision 7.

Please send payment to the address above. I am keeping a copy of this letter and proof of its delivery.

Sincerely,


[YOUR NAME]

Note: This is a Minnesota security deposit demand letter drawn from Minn. Stat. Section 504B.178. Minnesota sets the three-week return-or-statement deadline, the penalty equal to the amount withheld, and what a landlord may withhold. For the generic template and other states, see the Security Deposit Demand Letter hub.

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.

Frequently Asked Questions

It is a written demand a Minnesota tenant sends a former landlord to recover a security deposit the landlord did not return, or account for in a written statement of the specific reason for withholding, within the three weeks that Minn. Stat. 504B.178, subd. 3(a) allows. The letter states the amount owed, disputes any improper withholding, and asks for payment by a set date. It documents that you asked for the deposit before filing in conciliation court, and it can note the penalty equal to the amount withheld under subdivision 4.

A Minnesota security deposit demand letter is an informal written request that costs nothing to send and asks the landlord to pay before any case is filed. Conciliation court, Minnesota version of small claims, is a formal case you file, usually after the demand is ignored, where you may claim up to $20,000 (Minn. Stat. 491A.01). The demand letter often resolves the dispute on its own, and if it does not, it becomes evidence that you tried to settle first.

In Minnesota the landlord must, within three weeks after the tenancy ends and after receiving your mailing address or delivery instructions, 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)). Compliance is measured by the mailing date, so a deposit or statement placed in first class mail on time is sufficient (subd. 3(b)).

A Minnesota landlord who fails to return the deposit or account on time is liable for damages equal to the portion of the deposit withheld plus interest, as a penalty, in addition to the portion wrongfully withheld and interest (Minn. Stat. 504B.178, subd. 4). Bad-faith retention adds punitive damages not to exceed $500 for each deposit (subd. 7). Citing these provisions in your demand letter signals that a wrongful withholding can cost far more than the deposit.

A Minnesota landlord may withhold only amounts reasonably necessary to remedy tenant defaults in the payment of 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)). Charges for ordinary wear and tear are not proper, and withholding outside these categories can be disputed in your demand letter.

Yes. 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, within the same three-week period as the deposit return (Minn. Stat. 504B.178, subd. 3(a)). The statute requires the written reason but does not set a dollar threshold for attaching bills or receipts. A missing or vague statement can make the withholding improper.

Minnesota conciliation court, the small claims forum, hears claims up to $20,000 (Minn. Stat. 491A.01). A deposit claim can include the withheld deposit, the subdivision 4 penalty equal to the amount withheld plus interest, and up to $500 in punitive damages for bad-faith retention under subdivision 7. The deadline to sue on a written lease is six years (Minn. Stat. 541.05), though sending your demand letter and filing promptly is the practical approach.

A Minnesota demand letter should identify you and the landlord, give the rental address and the dates of the tenancy, state the deposit amount and your mailing address, and note that the three-week deadline under Minn. Stat. 504B.178, subd. 3(a) has passed. It should dispute any improper withholding, state the exact amount owed, and demand payment by a specific date. Referencing the penalty equal to the amount withheld under subdivision 4 reinforces the demand.