Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In Minnesota, landlords can require tenants to pay a security deposit, which is used to cover any necessary repairs after the tenant moves out or to compensate for unpaid rent. Minnesota law does not specify a maximum amount for a security deposit, but it does regulate how and when the deposit must be returned. According to Minnesota Statute 504B.178, landlords must return the security deposit within 21 days after the tenant has surrendered the rental unit and provided a forwarding address, or within the period the landlord and tenant agreed upon in the lease, not to exceed 60 days. The landlord may withhold amounts from the security deposit for unpaid rent, damages beyond normal wear and tear, and other breaches of the lease agreement. If any portion of the deposit is withheld, the landlord must provide the tenant with a written itemized list of deductions. Failure to comply with these requirements can result in penalties, including a potential award to the tenant for damages up to twice the amount of the security deposit.