Rent payments and the security deposit are a fairly simple matter in Minnesota, but there are some nuances that landlords should be aware of.
To begin, rent is due on the day agreed upon in the lease agreement, which in most cases will be the first day of the month. Minnesota landlords cannot demand payment of rent by a particular method (cash, check, electronic), but if the payment is made in cash a receipt is required. Cash payment made in person require a receipt immediately, while a cash payment made that is not in person requires that a receipt is required within three business days. As far as late payments of rent, the lease agreement should also specify when rent is considered late. A late fee in Minnesota cannot exceed 8% of the amount past due.
There is no limit to the amount that a landlord in Minnesota can request for the security deposit, but it does include any pre-lease deposit. The deposit is for damages beyond normal wear and tear, and for any unpaid amounts owed to the landlord.
Returning the security deposit to the tenant is required within three weeks of move out, and it must include an itemized accounting for any deductions to the deposit. In addition, Minnesota landlords need to include interest due on the security deposit, paid at a rate of 1% per annum.
As is true in many states, there is a penalty imposed on the landlord if they fail to comply with the return of the security deposit within the three weeks time frame, or if they fail to provide the itemized statement of deductions. Damages would include an amount equal to the portion of the deposit that is wrongfully withheld, including interest, and punitive damages of up to $500.
Read up on the statute for security deposits with Minn. Stat. § 504B.178.