Security deposit caps
Security deposits are capped at a single month's rent.
If a property owner chooses to ask for more than a single month's rent up front, the security deposit is limited to 50% of a single month's rent. In this case, the renter must have the ability to pay the security deposit in up to three installments.
A common example of this is when a landlord asks for both the first and last month's rent in advance--in this situation, the security deposit would be limited to 50% of a month's rent, and the renter must be able to pay the security deposit in installments over three months.
In situations where a renter has a referral from a government agency or non-profit service provider, one and one-half month's rent may be collected as a security deposit.
When returning a security deposit to a renter, landlords must include a copy of Minnesota Statutes 504B.178 and Minneapolis Code of Ordinances 244.2040.