Sometimes renting out a room in your home isn’t about running a bustling rental business; instead, it’s about making your home work better for you. Whether you’re offsetting costs or filling a space, a room rental agreement North Dakota landlords can rely on should clearly outline expectations from the start.
Even when you’re only renting a single bedroom, your room rental agreement in North Dakota still functions as a legally binding residential lease. A properly drafted agreement should address rent and deposits, disclosures, rules, and more.
Below, we’ll walk through what North Dakota law requires and how to create a lease agreement correctly.
Room Rental Laws
Room rentals fall under North Dakota landlord-tenant law, which governs key aspects of your North Dakota room rental agreement, including:
- Security deposits
- Rent and fees
- Access and privacy
- Maintenance and habitability
- Lease terms and termination
- Eviction and breaches
While North Dakota law allows flexibility in structuring your room rental agreement, landlords must still comply with all state laws.
Different Types of Room Rental Agreements in North Dakota
Before creating your room rental agreement in North Dakota, you should decide which type of tenancy best fits your situation.
Verbal agreement: While state law technically recognizes verbal agreements in some situations, they are often difficult to enforce and can lead to misunderstandings. We strongly recommend a written agreement.
Fixed-term lease: A fixed-term lease agreement lasts for a set period, typically 1 year. The benefits of this type of agreement include stability and predictability.
Month-to-month lease: A month-to-month rental agreement, or a tenancy at will, automatically renews each month until one party gives notice to terminate. This option offers flexibility but requires careful attention to notice the rules.
Required Landlord Disclosure
North Dakota requires certain disclosures in all residential rental agreements.
Lead-based paint: For any home built before 1978, you must disclose any known information about lead-based paint and its hazards and provide the required EPA pamphlet.
Move-in checklist: Every North Dakota room rental agreement must include a checklist of the room’s condition at move-in, including any damages (N.D. Cent. Code § 47-16-07.2).
Security Deposit Rules
North Dakota law sets specific limits and timelines for security deposits.
Maximum security deposit: In most cases, North Dakota security deposits are limited to 1 month’s rent. However, if your tenant has any felony convictions or judgments against them for violating a previous rental agreement, you may charge up to 2 months’ rent as a deposit (N.D. Cent. Code § 47-16-07.1).
Pet deposits: North Dakota law allows you to charge a pet deposit; however, the total deposit amount, including the security and pet deposits, cannot exceed the legal maximum (N.D. Cent. Code § 47-16-07.1).
Security deposit receipt: You are not required to provide your tenant a receipt for their security deposit.
Deduction tracking: North Dakota law allows you to deduct from your tenant’s deposit to cover unpaid rent or excessive damages. When returning the balance of the deposit, you must provide an itemized list of any deductions (N.D. Cent. Code § 47-16-07.1(3)).
Security deposit return: You must return your tenant’s security deposit, minus any deductions, within 30 days of lease termination (N.D. Cent. Code § 47-16-07.1(3)).
Rent Payment Rules
Clear rent payment rules help prevent disputes in a shared housing situation.
Late rent fees: North Dakota does not limit what you can charge as a late rent fee; however, you must clearly outline the fee in the rental agreement.
Right to withhold rent: If a landlord fails to make any necessary repairs after the tenant gives notice, the tenant may repair themselves and deduct the cost from future rent (N.D. Cent. Code § 47-16-13).
Grace period: You do not have to offer your tenant a grace period for late rent payments.
Pet rent: Pet rent is permitted, provided it is clearly disclosed in the lease agreement.
Rent Payment Increase Rules
North Dakota landlords may increase rent as needed, but you must follow the notice requirements.
Rent payment increase frequency: For fixed-term leases, you cannot increase rent during the lease term unless your rental agreement clearly allows it. For month-to-month tenancies, you must give at least 30 days’ written notice (N.D. Cent. Code § 47-16-15).
Rent payment increase maximum: There are no statewide limits on how much you can increase rent; however, you must give your tenant proper notice (N.D. Cent. Code § 47-16-07).
Rent control/stabilization: Rent control and stabilization do not exist in North Dakota.
North Dakota Room Rental Agreement Breaches
When a tenant violates their room rental agreement in North Dakota, landlords must follow proper procedures.
Failure to pay: If your tenant misses a rent payment, you may issue a 3-day Notice to Pay or Quit (N.D. Cent. Code § 47-32-01(4)).
Lease violations: In North Dakota, landlords do not have to allow tenants to cure a lease violation. Instead, you may issue a 3-day Notice to Quit (N.D. Cent. Code § 47-32-02).
Self-help evictions: In North Dakota, self-help evictions are illegal. You should never attempt to remove a tenant on your own.
Terminating a North Dakota Room Rental Agreement
In North Dakota, termination rules depend on the type of tenancy.
Fixed-term: A fixed-term lease ends on the date specified in the contract. Tenants who wish to end a fixed-term room rental agreement early must meet a qualifying condition, such as active-duty military service or domestic violence.
Month-to-month: North Dakota tenants and landlords can terminate a month-to-month room rental agreement by giving 1 month’s written notice (N.D. Cent. Code § 47-16-15).
Tenant’s right to terminate: Tenants may end their room rental agreement in North Dakota early if they meet certain requirements, such as active-duty military service, domestic violence, landlord harassment, or if the room becomes uninhabitable.
Room abandonment: North Dakota tenants who abandon their lease are often financially liable for the remainder of the lease term and other damages. However, it is your obligation to lessen the damages by making a reasonable effort to re-rent the room as soon as possible (N.D. Cent. Code § 47-16-17.1(5)).
Landlord Access Laws
Even though the rented room is inside your home, you must still respect your tenant’s privacy.
Advance notice: You must notify your tenant before entering their room, but there is no specific timeframe for this notice. Additionally, you may only enter during reasonable hours (N.D. Cent. Code § 47-16-07.3).
Immediate access: North Dakota landlords may enter the room immediately in an emergency (N.D. Cent. Code § 47-16-07.3).
Landlord harassment: In North Dakota, harassment occurs when a landlord repeatedly enters a tenant’s room without good cause or notice.
Lease Agreement Renewal and Termination
North Dakota law also oversees renewals and terminations.
Required renewals: North Dakota landlords are not required to renew a tenant’s lease at the end of its term.
Required notice: In North Dakota, landlords must give tenants at least 1 calendar month’s notice when terminating a month-to-month room rental agreement. No notice is required to terminate a fixed-term lease (N.D. Cent. Code § 47-16-15).
Month-to-month considerations: If either party does not plan to renew a month-to-month agreement, they must give 1 calendar month’s notice (N.D. Cent. Code § 47-16-15).
Room Rental Agreement North Dakota FAQs
What to include in a North Dakota room rental agreement?
A North Dakota room rental agreement should clearly spell out how the rental arrangement will work. To do this, make sure you include key details, such as the rent amount and when it’s due, security deposit terms, the length of the lease, obligations and rules, and more.
How do I legally rent out a room?
To legally rent a room in North Dakota, make sure you comply with all state and local regulations. Use a landlord software to put your lease terms in writing and use a rental agreement template that includes all necessary disclosures.
How to make a North Dakota room rental agreement?
Use a property management software to begin with a printable North Dakota room rental agreement template PDF. Customize the template with your terms and rules, then have everyone sign and hold on to a copy for your records.