Many landlords take a deposit from a prospective tenant to hold an apartment prior to move-in. I require a deposit when there is more than 1 week before the start of the new lease. State law is very clear on

1. The agreement must be in writing and signed by both the landlord and prospective tenant.
2. That agreement must specify under what circumstances the deposit will be returned to the prospective tenant.
3. If the above circumstances occur, the landlord must return the deposit within 7 days.
4. Once the landlord and tenant enter into a lease agreement, the money must be applied toward the tenant’s rent or security deposit. Any payments for tenant screening are not included in this requirement.

If the landlord violates any of these requirements, s/he is liable to the prospective tenant for 150% of the deposit amount. Once the landlord and tenant sign a lease and the landlord complies with #4 above, this law no longer applies. The moral of the story is: make sure everything is in writing!

See Minnesota Statute 504B.175 for more information