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Landlord's Desk

State law guide · Checked November 14, 2026

Minnesota landlord rules: late fees, deposits and rent increases

Minnesota caps late fees as a share of the overdue rent. It sets no limit on deposit size, but it does require interest on deposits. Here is what chapter 504B of the Minnesota Statutes says, with the section for each rule.

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The short version

  • Late fee limit: 8% of the overdue rent payment, and the lease must say in writing that a late fee may be charged.
  • The statute sets no required grace period, but the written agreement must say when the late fee is imposed.
  • There is no limit on deposit size.
  • Return the deposit, with a written statement of the reasons for any deductions, within three weeks after the tenancy ends.
  • No statute sets a notice period for raising rent, and cities can't adopt rent control unless voters approve it in a general election.

Late fees in Minnesota

Limit
8% of the overdue rent payment. Minn. Stat. § 504B.177(a)
Grace period
None in the statute. The written agreement must specify when the late fee will be imposed. Minn. Stat. § 504B.177(a)
Other conditions
The tenant and landlord must agree in writing that a late fee may be imposed. A late fee is not treated as interest or liquidated damages. A date before the due date that earns a discount for early payment doesn't count as the due date. Where the landlord has a government housing assistance contract, the fee is calculated on the tenant's portion of the rent alone. Minn. Stat. § 504B.177(a), (c)

Security deposits in Minnesota

Maximum deposit
The statute sets no limit. Minn. Stat. § 504B.178
Return deadline
Three weeks after the tenancy ends, counted once the landlord has the tenant's mailing address or delivery instructions. The deadline is five days if the tenant leaves because of a legal condemnation not caused by the tenant. Mailing within the deadline counts. Minn. Stat. § 504B.178, subd. 3
Itemized deductions
Required, as a written statement of the specific reason for withholding, within the same three weeks. Deductions are limited to amounts reasonably necessary for unpaid rent or other funds due, or to restore the premises to their starting condition, ordinary wear and tear excepted. The landlord has the burden of proof. Minn. Stat. § 504B.178, subd. 3
Interest
Simple interest at 1% per year. It isn't compounded. Interest under $1 is excluded. Minn. Stat. § 504B.178, subd. 2
How it's held
No special account or bond in the statute. The deposit is held by the landlord for the tenant. Minn. Stat. § 504B.178, subd. 2
Penalty
A landlord who misses the deadline owes the amount withheld plus interest as a penalty, on top of the wrongfully withheld amount. Bad-faith retention adds punitive damages of up to $500 per deposit. Minn. Stat. § 504B.178, subds. 4, 7

Rent increases in Minnesota

Notice to raise rent
No statute sets a notice period for a rent increase. The closest rule covers ending a month-to-month tenancy: notice at least as long as the interval between rent due dates, or three months, whichever is less. Check your lease for its own notice term. Minn. Stat. § 504B.135
Statewide cap
None in the statute. Minn. Stat. ch. 504B
City rent control
Not allowed, unless approved in a general election. No city, county, or town may adopt or renew a law to control rents on private residential property, except an ordinance or charter amendment approved in a general election. Minn. Stat. § 471.9996, subds. 1, 2

This page covers Minnesota state law for ordinary residential rentals. Cities and counties can add their own rules, and subsidized housing and mobile home lots follow different ones.

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Questions landlords ask

What is the maximum late fee for rent in Minnesota?

8% of the overdue rent payment, and the tenant and landlord must have agreed in writing that a late fee may be imposed. On $1,200 rent that is $96 (Minn. Stat. § 504B.177).

How long does a Minnesota landlord have to return a security deposit?

Three weeks after the tenancy ends, with a written statement of the specific reason for any deduction (Minn. Stat. § 504B.178, subd. 3).

Do Minnesota landlords pay interest on security deposits?

Yes. Simple interest at 1% per year, not compounded, with interest under $1 excluded (Minn. Stat. § 504B.178, subd. 2).

Free templates you can use in Minnesota

These are plain templates that aren’t tied to one state. Fill in the numbers your statute and lease call for.

Keep Minnesota rent and deposits on one ledger

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This guide is general information, not legal advice. It summarizes state statutes as read on November 14, 2026; laws change and courts interpret them. Check the current statute (Minnesota Statutes, chapter 504B) or talk to a local attorney before you act.