In Minnesota, a landlord holding a tenant’s security deposit for more than one year is generally obligated to pay interest on that deposit. The specific amount of interest due is typically dictated by state law. Determining the precise interest owed can be achieved through a computational tool that factors in the deposit amount, the duration the deposit was held, and the applicable interest rate mandated for the relevant period. This facilitates accurate calculation of financial responsibilities related to rental agreements.
Accurate determination of deposit interest ensures compliance with Minnesota’s landlord-tenant laws, mitigating potential legal disputes. It offers transparency and fairness in financial transactions between landlords and tenants, fostering positive rental relationships. Historically, the requirement to pay interest on security deposits evolved to protect tenants from landlords potentially profiting unfairly from their funds held over extended periods.
