MODERATE RISK

North Dakota

Security deposit laws

North Dakota security deposit laws are detailed under the North Dakota Century Code (NDCC) Title 47, Chapter 47-16, Sections 47-16-07.1 to 47-16-07.3. These laws provide clear guidelines on how landlords must handle security deposits, ensuring both landlords and tenants are aware of their rights and responsibilities under North Dakota law. Please note that rules and regulations may vary by municipality.

Collecting & Holding

Security Deposit Amount

Under North Dakota law, a landlord can charge a security deposit of up to one month’s rent for tenants who do not have a pet. If the tenant has a pet, the landlord may charge an additional deposit, which may equal up to one month’s rent for the pet (NDCC §47-16-07.1). However, this pet deposit cannot be charged for service animals.

Options for Holding

North Dakota law does not specify that security deposits must be kept in a separate or interest-bearing account. Landlords can hold the security deposit in any account, including their personal or business accounts.

Notification Requirements

North Dakota law does not require landlords to notify tenants where the security deposit is being held or provide a receipt for it.

Payment of Interest Earned

North Dakota law does not require landlords to pay interest on security deposits, regardless of how long the deposit is held.

Returning

Timeline for Returning

The security deposit must be returned to the tenant within 30 days after the tenant vacates the premises and the lease terminates (NDCC §47-16-07.1). If the landlord is withholding part of the deposit for damages or unpaid rent, they must provide an itemized written statement within the same timeframe.

Claims Process

The landlord is required to provide the tenant with a written itemized list of deductions within 30 days of the lease termination (NDCC §47-16-07.1). If the landlord fails to do so, they may lose the right to withhold any portion of the deposit.

If the tenant wishes to dispute the deductions, they may file an action in small claims court but are encouraged to first seek to resolve the issue directly with their landlord.

Permissible Deductions

Landlords in North Dakota are permitted to make deductions from the security deposit for:

  • Unpaid rent.
  • Damage to the property beyond normal wear and tear.
  • Unpaid utility bills if the tenant was responsible for utilities.
  • Cleaning costs necessary to return the unit to the condition it was in at the start of the lease.
  • Other costs incurred from the tenant’s violation of the lease agreement.

Normal wear and tear, such as minor carpet wear or faded paint, cannot be deducted from the security deposit.

Penalties

If a landlord fails to return the deposit or provide an itemized list of deductions within 30 days, the tenant may sue for the return of the deposit. If the tenant is successful in court, the landlord may be required to pay up to treble (three times) the amount wrongfully withheld, plus any attorney’s fees (NDCC §47-16-07.3).

Special Circumstances

None

DISCLAIMER: Security deposit laws may vary by county or municipality. The information provided by Build Whale, Inc. is for
general informational purposes only and should not be construed as legal advice. It is not a substitute for consultation with a
qualified attorney. While we strive to provide accurate and up-to-date information, Build Whale, Inc. makes no guarantees or
warranties regarding the accuracy, completeness, or reliability of the information presented.

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