.png)
Individuals who rented or lived in a Minnesota property managed by Renters Warehouse and whom the company deducted money from their security deposit may be eligible to receive a cash payment from a class action settlement.
Renters Warehouse agreed to pay $195,000 to settle a class action lawsuit alleging it improperly deducted money from tenant security deposits for ordinary wear and tear in violation of Minnesota law.
Who are the class members?
Eligible class members include individuals who meet all of the following criteria:
- They previously rented or resided in a property located in Minnesota for which Renters Warehouse served as property manager during any portion of the tenancy.
- They vacated the property or moved out between May 31, 2019, and July 16, 2024.
- They paid or were required to pay a security deposit as a condition of the lease or rental agreement.
- They had any deduction made from their security deposit by or in favor of the property owner.
- They did not submit an objection, challenge, lawsuit or other document expressing disagreement with the charges applied against the security deposit to Renters Warehouse, the property owner or a court.
There are two categories of class members based on the outcome of their security deposit:
- Net positive class members: Those who had deductions from their security deposit but received some portion of the deposit back.
- Net negative class members: Those who had deductions that exceeded their security deposit, resulting in no refund.
How much can class members get?
The settlement divides payments between the two categories of class members as follows:
- Net positive class members: This category receives 90% of the net settlement fund distributed pro rata based on the amount of move-out charges Renters Warehouse assessed to each member in this group.
- Net negative class members: This category receives 10% of the net settlement fund distributed pro rata based on the amount of move-out charges Renters Warehouse assessed to each member in this group.
If a class member’s calculated payment is less than $5, they will not receive payment. Instead, the settlement administrator will redistribute those funds among class members whose payments are $5 or more.
No action needed to receive payment
Class members do not need to file a claim to receive a payment.
If the court approves the settlement and the payment due to a class member is at least $5, the settlement administrator will automatically mail a check to the primary contact for the lease as identified by Renters Warehouse’s records. Checks expire and become void if not cashed within 90 days of issuance.
The settlement administrator will donate any funds remaining after 120 days, such as from uncashed checks or payments fewer than $5, to Southern Minnesota Regional Legal Services Inc. or another charitable organization the court approves.
Settlement fund breakdown
The $195,000 settlement fund includes:
- Settlement administration costs: Amount not specified
- Attorneys' fees and costs: Up to $64,935
- Service awards to class representatives: Up to $7,500 each ($15,000 total)
- Payments to eligible class members: Remainder of the settlement fund
Important dates
- Deadline to opt out: Oct. 30, 2026
- Final approval hearing: Dec. 7, 2026
When is the Renters Warehouse security deposit settlement payout date?
The settlement administrator will mail payments to eligible class members within 90 days after the court resolves any appeals and grants final approval of the settlement.
Why is there a class action settlement?
The plaintiffs alleged Renters Warehouse improperly deducted amounts from tenants’ security deposits for ordinary wear and tear, which is not allowed under Minnesota law.
The company denied the allegations but agreed to settle to avoid the risks and costs of continued litigation.
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.svg)