Minnesota Security Deposit Withholding Remedies

Subdivision 4 of § 504B.178 provides a penalty equal to the portion of deposit withheld plus interest in addition to the wrongfully withheld amount and interest when specified statutory duties are not met after receipt of the tenant’s address/delivery instructions. Bad-faith retention can add separate punitive damages under subdivision 7.

Last reviewed: August 30, 20261 official source cited

Subdivision 4 penaltyEqual to withheld portion + interest

In addition to the wrongfully withheld amount and interest when the statute applies.

Bad-faith punitive damagesUp to $500 per deposit

Subdivision 7, separate from subdivision 4 damages.

Do not treat remedies as automatic calculator output

The statutory elements, inspection duties, address/delivery instructions, actual withholding and bad-faith facts matter. Preserve the full timeline before evaluating a remedy.

Educational statewide guide. Billing method, lease disclosures, address/delivery instructions, inspections and local rules can change the result. This page is not legal advice.

Official sources

Minnesota Revisor of StatutesMinnesota Statutes § 504B.178 — security deposits ↗

Current official statute for 1% interest, 21-day return/accounting, ordinary-wear exclusion, burden of proof and remedies.

Related Minnesota guides

Security Deposit →21-Day Rule →1% Interest →Initial Inspection →