Maximum Days to Hold the Rent or Security Deposit

[jxia17]

My question involves landlord-tenant law in the State of: Minnesota

My tenants already signed a lease, paid the deposit ($1000) and the first month's rent ($1000). Before they were to move in, they wanted to terminate the lease. They were complaining the wall needed to be repainted and the carpet needed to re-cleaned. There were no documented agreements on any of these and I believe the rental property is in very good, if not mint, condition. Being nice and not wanting to deal with them in the future, I agreed by text messaging them to release them off the lease and asked them to return the rental keys first. Their deposit as well as their first month's rent will be returned within the following five business days after they surrender the keys. However, the tenant and their lawyer demanded to have $1000 back on the same day when they return the keys, or they would sue me in court for illegally holding their money.

I feel they are being too unreasonable. Is holding their money for a maximum of 5 business days too long?

[LawResearcherMissy]

Why would you need to hold it at all? They didn't move in, so it's not like you need to have time to inspect for damages.

[jxia17]

Thanks for the reply.

I need to make sure the rent check is cleared (this all happened within a week). Besides, they did enter the property several times.