North Dakota Security Deposit Law

Maximum deposit

Landlords may not take a security deposit above one month's rent, except up to two months from a tenant with a felony conviction or a prior rental-agreement judgment, plus a separate pet deposit up to the greater of $2,500 or two months' rent (N.D.C.C. § 47-16-07.1(1)-(2)). (N.D.C.C. § 47-16-07.1(1)-(2))

One month's rent; up to two months for tenants with a felony conviction or a prior judgment for violating a rental agreement; a separate pet deposit up to the greater of $2,500 or two months' rent

Return deadline

Landlords must deliver or mail the deposit balance, with an itemization of any amounts kept, within 30 days after the lease ends and the tenant surrenders possession (N.D.C.C. § 47-16-07.1(3)). (N.D.C.C. § 47-16-07.1(3))

Itemized statement of deductions

Any part of the deposit not refunded must be itemized in a written notice that states any amount still owed to the landlord or the refund due, delivered or mailed within 30 days (N.D.C.C. § 47-16-07.1(3)). (N.D.C.C. § 47-16-07.1(3))

Interest on the deposit

Landlords must hold deposits in a federally insured interest-bearing account and pay the tenant the accrued interest when the lease ends, unless the tenant occupied the unit for less than nine months (N.D.C.C. § 47-16-07.1(1), (3)). (N.D.C.C. § 47-16-07.1(1), (3))

Deposits must be kept in a federally insured interest-bearing savings or checking account for the tenant's benefit, and accrued interest is paid to the tenant at lease end; no interest is owed if occupancy lasted less than nine months.

Penalty for wrongful withholding

A landlord who withholds deposit money without reasonable justification is liable for treble damages (N.D.C.C. § 47-16-07.1(4)). (N.D.C.C. § 47-16-07.1(4))

Where the deposit is held

A North Dakota landlord who takes a deposit must put it in a federally insured, interest-bearing savings or checking account held for the tenant's benefit (N.D.C.C. § 47-16-07.1(1)). (N.D.C.C. § 47-16-07.1)

The account must earn interest, and the deposit plus accrued interest goes to the tenant at lease end (interest is not owed if occupancy lasted under nine months). On a sale, the deposit and interest must be transferred to the new owner.

Receipt or written notice of the deposit

North Dakota's deposit statute does not require a written receipt or a notice telling the tenant where the deposit is held (N.D.C.C. § 47-16-07.1). (N.D.C.C. § 47-16-07.1)

Move-in condition checklist

When the rental agreement is signed, a North Dakota landlord must give the tenant a statement of the unit's condition that both sides agree to and sign (N.D.C.C. § 47-16-07.2). (N.D.C.C. § 47-16-07.2)

The signed statement is prima facie proof of the condition of the premises at the start of the tenancy. The statute sets no separate penalty for skipping it.

Pet deposits

On top of the regular deposit, a North Dakota landlord may collect a pet deposit of up to $2,500 or two months' rent, whichever is greater, but not for a service or companion animal a disabled tenant needs (N.D.C.C. § 47-16-07.1(2)). (N.D.C.C. § 47-16-07.1, N.D.C.C. § 47-16-07.5)

The pet deposit is separate from the one-month cap on the general deposit and may be applied to pet damage at lease end. For assistance animals the landlord may ask for reliable supporting documentation unless the disability or need is apparent or already known (§ 47-16-07.5).

Nonrefundable fees

North Dakota has no statute addressing nonrefundable move-in or cleaning fees, so nothing in the leasing chapter expressly bans or authorizes them (N.D.C.C. § 47-16-07.1). (N.D.C.C. § 47-16-07.1, N.D.C.C. § 47-16-20.1)

Small-landlord exemptions

North Dakota's deposit rules apply to every residential lessor regardless of size, and even reach the state and its political subdivisions (N.D.C.C. § 47-16-07.1(6)). (N.D.C.C. § 47-16-07.1)

Deposit alternatives and installments

North Dakota law does not regulate surety bonds, deposit insurance or installment plans as substitutes for a security deposit (N.D.C.C. ch. 47-16). (N.D.C.C. ch. 47-16, N.D.C.C. § 47-16-07.1)