North Dakota Security Deposit Collections & Holdings

North Dakota Security Deposit Collections & Holdings

Last Updated: April 4, 2023 by Ashley Porter

Quick Facts Answer
Maximum / Limit Usually 1 Month’s Rent
Receipt Requirement None
Inventory Requirement Yes
Interest Requirement Yes (Leases over 9 Months)

To learn about laws on security deposit returns in North Dakota, click here.

Maximum Security Deposit Allowed in North Dakota

North Dakota law limits the maximum security deposit to one month’s rent. However, landlords can collect two months’ rent from a tenant with a felony conviction or if they had a judgment entered against them for violating a lease agreement.

Can Landlords Charge an Additional Pet Deposit in North Dakota?

In North Dakota, landlords can charge a pet deposit, except for service dogs and emotional support animals. However, the additional pet deposit cannot exceed $2,500 or two months’ rent, whichever is greater.

This amount is in addition to the security deposit, but the pet deposit must only be used for damage caused by the pet.

How Much Rent Can a Landlord Collect Upfront in North Dakota?

North Dakota law does not regulate how much rent can be collected upfront. However, if rent is collected in advance, it must only be applied toward rent.

Security Deposit Collections in North Dakota

When landlords collect a security deposit in North Dakota, they must provide the tenant with a comprehensive list of existing damage to the rental unit when the lease agreement is signed. They must also deposit the money in a federally-insured, interest-bearing checking or savings account.

Do Landlords Have to Provide a Receipt for the Security Deposit in North Dakota?

Although some states like Washington require a receipt, landlords are not required to provide a receipt for the security deposit in North Dakota.

What Obligations Do Landlords Have to Establish the Condition at Move-in in North Dakota?

In North Dakota, landlords must provide the tenant with a comprehensive list of existing damage to the rental unit (if any). The list must be signed by the landlord and tenant.

Security Deposit Holdings in North Dakota

Landlords in North Dakota must hold security deposits in a federally-insured, interest-bearing checking or savings account.

Are Tenants Entitled to Interest on Their Security Deposit in North Dakota?

North Dakota law requires landlords to provide the actual interest earned on held security deposits except when the lease term is shorter than nine months.

How Are Security Deposits Accounted for in North Dakota?

Security deposits are not considered taxable income when they are collected.

What Happens to a Security Deposit When the Property is Sold in North Dakota?

When a property is sold in North Dakota, the seller must transfer the security deposit and interest to the new owner, who must handle it according to the same rules.

Sources

Security Deposit Collections in Other States