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
- 1 NDCC § 47-16-07.1
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A lessor may not demand or receive
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security, however denominated, in an amount or value in excess of one month’s rent… - 2 NDCC § 47-16-07.1
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A lessor may accept…up to two month’s rent, as security, from an individual convicted of a felony offense…
Source Link - 3 NDCC § 47-16-07.1
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A lessor may demand…up to two months rent, as security, from an individual who has had a judgment entered against that individual for violating the terms of a previous rental agreement.
Source Link - 4 NDCC § 47-16-07.1
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A pet security deposit may not exceed the greater of two thousand five hundred dollars or an amount equivalent to two months’ rent.
Source Link - 5 NDCC § 47-16-07.2
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A landlord shall provide the tenant with a statement describing the condition of the facilities in and about the premises to be rented at the time of entering a rental agreement.
Source Link - 6 NDCC § 47-16-07.2
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The statement shall be agreed to and signed by the landlord and tenant.
Source Link - 7 NDCC § 47-16-07.1
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The lessor…who requires money as a security deposit…shall deposit the money in a federally insured interest-bearing savings or checking account for the benefit of the tenant.
Source Link - 8 NDCC § 47-16-07.1
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…any interest accruing on the deposit must be paid to the lessee upon termination of a lease…
Source Link - 9 NDCC § 47-16-07.1
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A lessor is not required to pay interest on security deposits if the period of occupancy was less than nine months in duration…
Source Link - 10 NDCC § 47-16-07.1
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Upon a transfer in ownership of the leased real property or dwelling, the security deposit and accrued interest shall be transferred to the grantee of the lessor’s interest.
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