State Specific Question About: MINNESOTA (MN)

It varies according to how long the tenant has been there...

Simple. You know the amount the tenant paid in escrow. You have the escrow in the bank. The bank adds the interest. Presumably you've paid interest to tenant.

At end of his occupancy, you give tenant the entire amount (escrow and interest) less any damages or rent owed.

From MN Attorney General's link above (please confirm this is most recent law). I would think you need to calculate based on how long the tenancy has been in place based on chart below:

4. SECURITY DEPOSITS

Landlords have the right to require tenants to pay a security deposit (sometimes called a “damage deposit”). This is money paid by the tenant and held by the landlord to pay for any damage, beyond ordinary wear and tear, the tenant might do to the rental unit. It can be used to pay for any unpaid rent, or any money the tenant owes to the landlord under the lease or another agreement (e.g. water utility bills). (13) The security deposit cannot be used by the tenant to pay the rent. (14)

Amount of the Deposit

Minnesota law does not limit the amount a landlord may require as a security deposit. A landlord can increase the amount of the security deposit at any time during a “periodic tenancy” (a rental agreement in which no final date is mentioned), but only if the tenant is given proper advance written notice. Generally, this is one rental period plus a day.

If the deposit amount is stated in the rental agreement, and the rental agreement has a definite ending date, no changes in the deposit can be made unless both parties agree to the changes or the lease allows for changes.

At the end of the tenancy, the landlord must return the deposit to the tenant with interest. (15) Presently, the required interest rate is one percent (see the chart below). The landlord may keep the amount necessary to repair any damage done to the unit by the tenant (beyond ordinary wear and tear), or to pay off other debts related to the tenancy, including any unpaid rent. (l6)

Interest rate Time Frame

5 percent 8-1-73 to 9-30-84

5.5 percent 10-1-84 to 4-30-92

4 percent 5-1-92 to 3-21-96

3 percent 3-22-96 to 7-31-03

1 percent 8-1-03 to present

Yup, that's the most recent law.

If the tenant lived there for 16 months AFTER 2003, and the deposit was 500 bucks, then it's 5 bucks for the first year, and divide 5 dollars by 12 for the montly amount, multiply by four and add it to the 5 dollars for the first year.

And remember to get them an accounting and their portion back within 21 days.