This presentation outlines the requirements and deadlines of a landlord to return a tenant's security deposit as well as the penalties assessed if the security deposit is not returned.

2. Tenant’s deposit shall
earn simple interest at
the rate of 1% per year
Interest begins the first
of the month following
the full payment of the
security deposit by the
tenant to the landlord1.
Tenant’s security deposit

3.  Provided the landlord is in receipt of
tenant’s new mailing address or received
delivery instructions, landlord shall:
• Within three weeks after termination
of tenant’s tenancy; OR
• If the rental premises is condemned
(and the condemnation is not due to
the conduct of the tenant) within five
days of the date the tenant leaves the
rental property;
return the tenant’s security deposit with
interest OR send tenant a written statement
with the specific reasons landlord is
withholding the tenant’s security deposit2.
The return of tenant’s
security deposit

4. Must be sent by First Class United
States mail;
Must be deposited in the mail or
delivered to tenant within the time
frame provided in the previous slide
Envelope must include:
• Proper return address; AND
• Correctly addressed mailing
address as provided by tenant3.
Method of sending written
statement or security
deposit to tenant

5. Any unpaid rent or other
amounts that were due to
landlord pursuant to the lease
agreement;
to restore the rented premises to
the condition it was at the
beginning of the lease;
Any security deposit remaining
shall be returned to the tenant4.
Landlord may retain
proceeds from tenant’s
security deposit for:

6.  If the landlord is in receipt of tenant’s new
mailing address or received delivery
instructions from the tenant; AND
 The landlord fails to return tenant’s
security deposit or sends a written
statement to tenant:
• three weeks after termination of
tenant’s tenancy; OR
• If the rental premises is condemned
(and the condemnation is not due to
the conduct of the tenant) within five
days of the date the tenant leaves the
rental property5.
Landlord is liable to tenant for damages.
Failure of landlord to return
tenant’s security deposit

7. Tenant’s damages shall be:
• An amount equal to the portion
of the deposit withheld by the
landlord together with interest
on the amount;
+
• The portion of the deposit
actually withheld by the
landlord together with interest
on the amount6;
Computing tenant’s
damages

8.  If the landlord retains the tenant’s
security deposit in bad faith,
tenant is entitled to punitive
damages not to exceed $200.00;
 The court will presume that the
landlord retained the tenant’s
security deposit in bad faith if the
landlord does not return the
security deposit to tenant within
two weeks after the
commencement of a lawsuit by a
tenant to recovery the security
deposit7.
Tenant’s punitive
damages

9. Statutory References
1. Minn. Stat. §504B.178, Subd. 2
2. Minn. Stat. §504B.178, Subd. 3
3. Minn. Stat. §504B.178, Subd. 3
4. Minn. Stat. §504B.178, Subd. 3
5. Minn. Stat. §504B.178, Subd. 4
6. Minn. Stat. §504B.178, Subd. 4
7. Minn. Stat. §504B.178, Subd. 7

10. Disclaimer
This presentation does not create an
attorney-client relationship or an
ongoing obligation to provide
information on this topic. The
information provided in this
presentation is for general knowledge
and is not created to address a
specific legal question. This answer
does not constitute legal advice as
each matter is unique and an attorney
should be consulted concerning your
legal rights.

11. © 2010 Berry Law Offices