Property Management

In Minnesota, a property manager who receives a security deposit must hold it in a:

ANon-interest-bearing account
BSeparate interest-bearing account if held for more than one year, with interest paid to the tenant✓ Correct
CJoint account with the owner
DTrust account only at a federally insured bank

Explanation

Minnesota requires that security deposits held for more than one year earn interest at a rate set by statute, with the interest to be paid to the tenant at the termination of the tenancy. The deposit must be kept in a separate account from the landlord's own funds.

People Also Study

State-Specific Concepts

Trust Account Rules

Practice More Minnesota Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Minnesota Quiz →