| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent
Costs of damage Cleaning costs |
| Return Deadline | 30 days |
| Itemized Deductions | Required |
| Penalty for Late Return | 3x Amount Due + Court Costs |
For laws on security deposit collections and holdings in North Dakota, click here.
Some cities and counties may have regulations which are different from those presented here. Always check local laws.
Security Deposit Deductions in North Dakota
North Dakota allows these deductions from a security deposit:
- Unpaid rent
- Costs of damage excluding normal wear and tear
- Cleaning and repair costs
Most states, including North Dakota, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable and reflect actual landlord expenses.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in North Dakota?
“Normal wear and tear” is damage and deterioration to a property that happens over time using an ordinary and reasonable level of care. Normal wear and tear includes things like:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Excessive damage” means any careless, reckless, or intentional damage that occurs because of someone on the property with the tenant’s permission. Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in North Dakota?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in North Dakota?
North Dakota landlords can charge a tenant for nail holes if they damage the walls in a way that doesn’t demonstrate an ordinary and reasonable level of care.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage, and thus chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in North Dakota?
North Dakota law allows landlords to charge for cleaning limited to bringing the unit back to its original condition at the start of the lease, excluding normal wear and tear.
Can the Landlord Charge for Painting in North Dakota?
North Dakota landlords can charge for painting, except for normal wear and tear. For example, a landlord might be able to charge for:
- Damage to the paint beyond normal wear and tear
- Tenant repainting without the landlord’s consent
- Tenant repainting with consent, but not doing the work to a professional standard
Normal paint wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint.
Landlords can charge for repainting if the damage is not the result of ordinary care. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in North Dakota
Landlords must return a security deposit with interest (if due) by mail or hand-delivery with a written notice and an itemized statement of deductions, if any, to the tenant’s last-known address no later than 30 days after the lease term ends and the tenant vacates the rental unit.
How Long Do Landlords Have to Return Security Deposits in North Dakota?
North Dakota landlords have 30 days after the lease term ends and the tenant vacates the rental unit to return any unused portion of the security deposit.
Do Landlords Owe Interest on Security Deposits 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. If due, the interest must be provided when the security deposit is returned. However, both the security deposit and interest can be applied toward damages.
How Do Landlords Give Notice in North Dakota?
Written notice must be mailed or hand-delivered to the tenant’s last-known address and must include the amount of the security deposit with interest due, if any, to the tenant, plus a written notice with an itemized statement of deductions, if any.
The written notice must state either:
- The amount of the security deposit returned to the tenant
- The amount still owed to the landlord
If a tenant does not claim what is left of their security deposit within one year after the lease term ends, the landlord is required to report it as unclaimed property.
Can a Security Deposit Be Used for Last Month’s Rent in North Dakota?
North Dakota law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in North Dakota
If landlords do not return the security deposit within the 30-day period, tenants can file for damages in court up to three times the amount wrongfully withheld plus court costs.
Tenants can also take legal action against a landlord for:
- Failure to provide an itemized statement when deductions are made
- Failure to hold the deposit in a financial account
- Failure to provide interest due
- Unreasonable deductions
How Can Tenants File a Dispute for a Security Deposit in North Dakota?
If a landlord fails to return the security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $15,000. If the amount is greater, the tenant must file in the local District Court.
A small claims case for a security deposit must be filed within 6 years. An attorney is not required but permitted. Cases are filed in the Small Claims Court within the county where the rental property is located or where the defendant lives. The filing fee is $10.
Sources
- 1 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 - 2 N.D. Cent. Code § 47-16-07.1(1)
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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.
Source Link - 3 N.D. Cent. Code § 47-16-07.1(4)
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A lessor is liable for treble damages for any security deposit money withheld without reasonable justification.
Source Link
- 4 N.D. Cent. Code § 27-08.1-05
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The court shall enter a written judgment indicating its decision on all cases filed with the court on the basis of the evidence presented. A judgment must be entered even if either party fails to appear at the hearing. The court may award the costs of the action to the prevailing party. For purposes of enforcement and execution, a judgment of the small claims court has the same force, effects, and attributes of a judgment of the district court.
Source Link - 5 N.D. Cent. Code § 27-08.1-01
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All judges of the district courts may exercise the jurisdiction conferred by this chapter, and while sitting in the exercise of that jurisdiction must be known and referred to as the “small claims court”. The jurisdiction of this court is confined to cases for recovery of money, a tenant’s claim for civil damages under subsection 9 of section 47-10-28 , or the cancellation of any agreement involving material fraud, deception, misrepresentation, or false promise, when the value of the agreement or the amount claimed by the plaintiff or the defendant does not exceed fifteen thousand dollars.
Source Link
