Rental security deposits

Limits on security deposits

Rental property owners can only collect a limited amount of money upfront when you sign a rental agreement. The limits vary, depending on whether they ask for other upfront costs in addition to a security deposit.

Security deposit only

If you are asked only to pay a security deposit, the most you can be charged is:

• One month's rent

Security deposit and additional items

If you are asked to pay other upfront costs in addition to a security deposit, such as first month's rent and last month's, the security deposit:

• Can only be 50 percent of one month's rent
• Must be payable over three months

Exceptions

Sometimes a government agency or non-profit service provider refers a renter to the rental property owner.

Security deposit for referral

When this happens, the most you can be charged is:

• One and a half months' rent

Legal notice and timeline

When a property owner returns your security deposit, they must include a copy of these two regulations:

• Minnesota Statutes 504B.178
• Minneapolis Code of Ordinances 244.2040

Within 21 days of moving out, your rental property owners must:

• Return the security deposit with interest, or
• Mail a letter explaining why they are not returning all or part of it.