SECURITY DEPOSIT DEMAND LETTER
STATE OF MINNESOTA
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL
[DATE]
[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]
Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]
Dear [LANDLORD/PROPERTY MANAGER NAME]:
This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with Minnesota law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable damages, interest, and attorney's fees.
I. MINNESOTA LEGAL FRAMEWORK
A. Governing Law
Security deposits in Minnesota are governed by Minn. Stat. Section 504B.178.
B. Security Deposit Limits
Minnesota law does not impose a statutory limit on the amount of security deposit a landlord may collect. However, any deposit collected must be returned according to statutory requirements.
C. Return Deadline
Pursuant to Minn. Stat. Section 504B.178(3), a landlord must return the security deposit within:
- Twenty-one (21) days after termination of the tenancy and delivery of possession (standard)
- Five (5) days if termination is due to condemnation or building code violation making the unit unfit for habitation
The deposit must be returned with an itemized statement accounting for any amounts withheld.
D. Interest Requirements
Under Minn. Stat. Section 504B.178(2), the landlord must pay simple interest on the security deposit at:
- One percent (1%) per year on all deposits held for more than one year
- Interest accrues from the first day of the month following the month in which all or part of the deposit is paid
- Interest must be paid when the deposit is returned
E. Pre-Move-Out Inspection Rights
Under Minn. Stat. Section 504B.178(1), the tenant has the right to:
- Be present during the move-out inspection
- Request a written inspection report before vacating
- Challenge any claimed damages
F. Permissible Deductions
Under Minn. Stat. Section 504B.178(3), a landlord may retain from the security deposit only amounts necessary to:
- Pay unpaid rent
- Compensate for damages beyond normal wear and tear
- Pay for other amounts owed under the lease
G. Prohibited Deductions
The landlord may NOT deduct for:
- Normal wear and tear
- Conditions existing prior to tenant's occupancy
- Conditions resulting from landlord's failure to maintain premises
- Routine cleaning and repainting between tenancies
II. FACTUAL BACKGROUND
A. Tenancy Information
| Item | Details |
|---|---|
| Tenant Name(s) | [FULL NAME(S) OF ALL TENANTS] |
| Property Address | [COMPLETE ADDRESS] |
| Lease Commencement | [DATE] |
| Lease Expiration/Move-Out | [DATE] |
| Monthly Rent | $[AMOUNT] |
| Security Deposit Paid | $[AMOUNT] |
| Date Deposit Paid | [DATE] |
| Pet Deposit (if applicable) | $[AMOUNT] |
| Total Deposits Paid | $[TOTAL] |
B. Move-Out Circumstances
Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email
Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered
C. Condition of Premises at Move-Out
Our Client left the premises in the following condition:
[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.
[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].
[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.
[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.
[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.
III. LANDLORD'S VIOLATIONS
You have violated Minnesota law in the following ways:
[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 21-day period required under Minn. Stat. Section 504B.178(3).
[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.
[ ] Failure to Pay Interest: You failed to pay accrued interest on the deposit as required by Minn. Stat. Section 504B.178(2).
[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]
[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]
IV. NORMAL WEAR AND TEAR
Minnesota law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.
The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:
[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]
V. DAMAGES AND REMEDIES
A. Return of Security Deposit and Interest
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Pet Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Accrued Interest (1% annually) | $[AMOUNT] |
| Total Deposits and Interest Due | $[AMOUNT] |
B. Statutory Remedies
Under Minn. Stat. Section 504B.178(7), if a landlord fails to comply with the security deposit requirements in bad faith:
- The tenant may recover the lesser of $500 or the deposit amount as a penalty
- The tenant may recover the full security deposit with interest
- The tenant may recover reasonable attorney's fees
C. Attorney's Fees and Costs
Under Minn. Stat. Section 504B.178(7), our Client is entitled to recover reasonable attorney's fees and costs incurred in pursuing this claim.
D. Total Demand
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Accrued Interest | $[AMOUNT] |
| Statutory Penalty (bad faith) | $[AMOUNT] |
| Attorney's Fees to Date | $[AMOUNT] |
| TOTAL DEMAND | $[AMOUNT] |
VI. EVIDENCE IN OUR POSSESSION
Our Client has preserved the following evidence to support this claim:
[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist (if conducted)
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]
VII. DEMAND
We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:
-
Return of Deposit and Interest: Pay to our Client the full amount of the security deposit plus accrued interest: $[AMOUNT]
-
Total Payment: The total amount due is $[TOTAL AMOUNT]
Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:
[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]
Reference: [TENANT NAME] Security Deposit
VIII. CONSEQUENCES OF NON-COMPLIANCE
If you fail to comply with this demand within the time specified, we are authorized and prepared to:
-
File Suit: Commence legal action in Minnesota Conciliation Court (for claims up to $15,000) or District Court for return of the deposit, interest, statutory penalty, attorney's fees, and costs.
-
Seek Statutory Penalty: Request the court award up to $500 or the deposit amount for bad faith retention pursuant to Minn. Stat. Section 504B.178(7).
-
Seek Attorney's Fees: Request the court award reasonable attorney's fees pursuant to Minn. Stat. Section 504B.178(7).
-
Report Violations: Report your conduct to:
- Minnesota Attorney General - Consumer Protection Division
- Local Housing Authority
- Better Business Bureau -
Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.
IX. RESPONSE REQUESTED
Please respond to this demand in writing within fourteen (14) days. Your response should include:
- Your position on the amount owed to our Client
- Any documentation supporting claimed deductions
- Payment or a good-faith settlement offer
If we do not receive a satisfactory response, we will file suit without further notice.
X. RESERVATION OF RIGHTS
This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
[MINNESOTA BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [TENANT FULL NAME]
ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent
cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]
MINNESOTA SECURITY DEPOSIT QUICK REFERENCE
| Element | Minnesota Requirement |
|---|---|
| Governing Statute | Minn. Stat. Section 504B.178 |
| Deposit Limit | No statutory limit |
| Return Deadline | 21 days (5 days for condemnation) |
| Itemization Required | Yes |
| Receipt Required | No |
| Interest Required | Yes (1% annually) |
| Separate Account Required | No |
| Penalty for Violation | Up to $500 or deposit (bad faith) + attorney's fees |
| Attorney's Fees | Yes - Minn. Stat. Section 504B.178(7) |
| Small Claims Limit | $15,000 (Conciliation Court) |
MINNESOTA-SPECIFIC PRACTICE NOTES
[ ] 21-Day Deadline: Minnesota's 21-day deadline is strictly enforced. Failure to return the deposit with itemization within 21 days may trigger penalties.
[ ] 5-Day Exception: If the tenant must vacate due to condemnation or building code violation, the deadline is reduced to 5 days.
[ ] Interest Required: Landlords must pay 1% simple annual interest on deposits held for more than one year.
[ ] Bad Faith Requirement: Unlike some states, Minnesota's penalty provisions require a showing of bad faith. Document evidence of bad faith.
[ ] Pre-Move-Out Inspection: Tenants have the right to request and be present at a move-out inspection.
[ ] Conciliation Court: Minnesota's small claims court (Conciliation Court) has a $15,000 limit, one of the highest in the nation.
[ ] Minneapolis/St. Paul: Minneapolis and St. Paul have additional local tenant protections. Check city ordinances.
[ ] Forwarding Address: Tenant should provide forwarding address in writing.
This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed Minnesota attorney before use.