Okay our tenant is gone, what do we do with the security deposit?

MINN. STAT. §504B.178

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

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

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

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:

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

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

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

Statutory References

1. Minn. Stat. §504B.178, Subd. 22. Minn. Stat. §504B.178, Subd. 33. Minn. Stat. §504B.178, Subd. 34. Minn. Stat. §504B.178, Subd. 35. Minn. Stat. §504B.178, Subd. 46. Minn. Stat. §504B.178, Subd. 47. Minn. Stat. §504B.178, Subd. 7

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.

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