Q: We signed a one-year lease to rent a home and paid a security deposit, equal to one month's rent. Five weeks before we were to move in, we notified the owner that we had decided against renting the home.

We never received keys to the home, which was immediately re-listed for rent, but it took awhile. The new tenants moved into the home a month later than we were to have moved in. We sent the owner a check for the one-month gap between the time we would have moved in and when the new tenants moved in. So, now we would like to receive our security deposit back. It has been more than 21 days since the new tenants moved in, and we have heard nothing from the owner.

Was our lease "completed" when the new tenants moved in, or does the 21-day time limit to return a security deposit start at the end of the lease that we originally signed? We would like to know when the owner is obligated to contact us regarding the return of our security deposit.

A: Under Minnesota law, your lease was not completed when the new tenants moved in. The 21-day time frame for return of your security deposit does not begin until your one-year tenancy is terminated. Technically, the owner could have held you to the one-year lease, but since he found new tenants, he cannot collect from both you and the new tenants. However, if the owner is charging the new tenants lower rent than what he was planning to charge you, then you will be required to pay the difference between the lower rent and the amount stated in your lease. You also may be required to pay the owner's expenses related to renting the unit after you backed out, such as advertising costs and any other fees involved.

Therefore, you should contact the owner immediately to discuss the situation. You should request that the lease be considered terminated and that the owner return your security deposit. You should also request that both parties sign an agreement confirming that the lease is terminated and addressing any additional expenses involved in re-renting the unit, such as advertising, difference in rent money and any other fees. This agreement should also provide for the amount of the security deposit to be returned and the date it should be returned. That way you will have no financial surprises at a later date. If you enter into an agreement with the owner, make sure both parties sign off on it. If the owner will not sign such an agreement, you should write him a letter confirming the discussion and requesting that your deposit be returned in full. If the landlord doesn't return the deposit within 21 days after receipt of your letter, then you will need to bring a conciliation court action against the landlord, seeking return of your deposit.

Kelly Klein is a Minneapolis attorney. Participation in this column does not create an attorney/client relationship with Klein. Do not rely on advice in this column for legal opinions. Consult an attorney regarding your particular issues. E-mail renting questions to kklein@kleinpa.com. Information provided is not confidential.