| 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.
Some cities and counties may have regulations which are more restrictive than those presented here. Always check local laws.
Maximum Security Deposit Allowed in North Dakota
North Dakota law limits the maximum security deposit to one month’s rent by default. A landlord may collect two months’ rent from a tenant with a felony conviction or a liability judgment 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 may 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 N.D. Cent. Code § 47-16-07.1(1) & (2)
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1. The lessor of real property or a dwelling who requires money as a security deposit, however denominated, shall deposit the money in a federally insured interest-bearing savings or checking account for the benefit of the tenant. The security deposit and any interest accruing on the deposit must be paid to the lessee upon termination of a lease, subject to the conditions of subsection 2. A lessor may not demand or receive security, however denominated, in an amount or value in excess of one month’s rent, except:
a. A lessor may accept an amount or value up to two month’s rent, as security, from an individual convicted of a felony offense as an incentive to rent the property to the individual.
b. A lessor may demand an amount or value 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.
2. A lessor may charge a lessee a pet security deposit for keeping an animal that is not a service animal or companion animal required by a tenant with a disability as a reasonable accommodation under fair housing laws. 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 - 2 N.D. Cent. Code § 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. The statement shall be agreed to and signed by the landlord and tenant. The statement shall constitute prima facie proof of the condition of the facilities and the premises at the beginning of the rental agreement.
Source Link
- 3 N.D. Cent. Code § 47-16-07.1(3)
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A lessor may apply security deposit money and accrued interest upon termination of a lease towards:
a. Any damages the lessor has suffered by reason of deteriorations or injuries to the real property or dwelling by the lessee’s pet or through the negligence of the lessee or the lessee’s guest.
b. Any unpaid rent.
c. The costs of cleaning or other repairs which were the responsibility of the lessee, and which are necessary to return the dwelling unit to its original state when the lessee took possession, reasonable wear and tear excepted.
Application of any portion of a security deposit not paid to the lessee upon termination of the lease must be itemized by the lessor. Such itemization together with the amount due must be delivered or mailed to the lessee at the last address furnished lessor, along with a written notice within thirty days after termination of the lease and delivery of possession by the lessee. The notice must contain a statement of any amount still due the lessor or the refund due the lessee. A lessor is not required to pay interest on security deposits if the period of occupancy was less than nine months in duration. Any amounts not claimed from the lessor by the lessee within one year of the termination of the lease agreement are subject to the reporting requirements of section 47-30.2-04.
Source Link - 4 N.D. Cent. Code § 47-16-07.1(5)
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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. The grantor shall not be relieved of liability under this section until transfer of the security deposit to the grantee. The holder of the lessor’s interest in the real property or dwelling at the termination of a lease shall be bound by this section even though such holder was not the original lessor who received the security deposit.
Source Link
