What counts as 'normal wear and tear'?

Normal wear and tear includes minor scuffs on walls, small nail holes from hanging pictures, carpet worn from normal foot traffic, and faded paint after 2+ years of tenancy. Landlords cannot legally deduct for these in most states. DepositHawk checks each item against your state's legal standard.

What if my landlord already sent me a deduction list?

That's exactly what the Demand Letter plan is for. Enter each deduction, and we generate a letter challenging each one individually with the specific statute or case law that makes it impermissible.

What if the deadline has already passed?

You may still recover your deposit even after the deadline, but you likely lose the penalty multiplier (2x or 3x damages) in most states. DepositHawk will tell you exactly what you can still recover.

No. Small claims court is designed for self-represented parties. Most security deposit cases settle after a demand letter — landlords often comply rather than appear in court.

Is this legal advice?

DepositHawk provides legal information — the actual statutes, deadlines, and penalty structures for your state — not legal advice. For complex situations or large amounts, consulting an attorney is always an option.

How much can I recover?

In Texas: up to 3x the withheld amount plus $100. In California: up to 2x the deposit amount. In New York: actual damages. The amount varies significantly by state — DepositHawk calculates your maximum recoverable amount before you decide to proceed.

Last updated: April 2026Researched by DepositHawk Research Team

Yes, Your Minnesota Landlord Owes You Interest

Your landlord has been sitting on your deposit for months — maybe years. In Minnesota, that money earns interest, and it belongs to you.

Minnesota landlords must pay 1% annual interest on security deposits under Minn. Stat. § 504B.178.

Minn. Stat. § 504B.178

•Your Money

How Much Interest Are You Owed?

The math is straightforward. Multiply your deposit by the annual rate, then by the number of years your landlord held it.

$2,000 deposit × 1% × 2 years = $40

That is money your landlord collected from you, earned interest on (or should have), and must pay back. It does not matter whether they actually put it in an interest-bearing account — the obligation exists regardless.

•Take Action

How to Demand Your Interest

Calculate the amount. Take your deposit, multiply by 1%, multiply by the number of years held. Round to the nearest cent.
Send a written demand. Email or certified mail to your landlord. State the deposit amount, the period held, the applicable rate under Minn. Stat. § 504B.178, and the total interest owed. Give them 14 days to respond.
Keep records. Save your lease, any deposit receipts, move-in/move-out dates, and a copy of your demand letter. You will need these if you go to court.

•Escalation

What If Your Landlord Refuses?

If your landlord ignores your demand or refuses to pay, you have options. Minnesota takes deposit violations seriously.

File in small claims court. Minnesota small claims courts handle cases up to $15,000. Filing costs about $75. No lawyer needed.
Cite the penalty. Under Minnesota Statutes, Minnesota courts can award the deposit plus additional penalties when a landlord wrongfully withholds deposit money — including interest.
File before the deadline. You have 6 years from move-out to file a claim in Minnesota. Do not wait.

Minnesota courts can award the deposit plus additional penalties for wrongfully withheld security deposits under Minnesota Statutes. The statute of limitations is 6 years.

Minn. Stat. § 504B.178

•Full State Law

Interest is just one piece of Minnesota deposit law. Your landlord also has 21 days to return your deposit with an itemized statement of deductions. Read the full Minnesota security deposit law breakdown.

●Frequently Asked Questions

Frequently Asked Questions

Does my Minnesota landlord have to pay me interest on my security deposit?

Yes. Under Minn. Stat. § 504B.178, Minnesota landlords are required to pay 1% annual interest on security deposits. This applies to the full deposit amount for the entire time your landlord holds it.

How much deposit interest does my Minnesota landlord owe me?

It depends on your deposit amount and how long it was held. For example, a $2,000 deposit held for 2 years at 1% earns approximately $40 in interest. Your landlord must include this when returning your deposit.

What if my Minnesota landlord refuses to pay deposit interest?

If your landlord refuses to pay the interest owed under Minn. Stat. § 504B.178, you can file a claim in small claims court. Minnesota small claims courts handle cases up to $15,000 — filing costs about $75.

Can my landlord deduct from my deposit before paying interest in Minnesota?

Your landlord can make lawful deductions for damage beyond normal wear and tear or unpaid rent, but they still owe interest on the deposit for the period they held it. The interest obligation and the return obligation are separate requirements under Minnesota law.

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DepositHawk is not a law firm and does not provide legal advice. Information and documents are for informational purposes only. No attorney-client relationship is created. Consult a licensed attorney for advice specific to your situation.