North Dakota caps a residential security deposit at one month's rent. Under N.D. Cent. Code 47-16-07.1, the landlord must hold the deposit in a federally insured interest-bearing account and return it, with any interest and an itemized statement of deductions, within 30 days after the lease ends and the tenant delivers possession.
N.D. Cent. Code 47-16-07.1 governs dwelling security deposits. A lessor "may not demand or receive security, however denominated, in an amount or value in excess of one month's rent," with two exceptions: up to two months' rent from a tenant convicted of a felony, or from one who has had a judgment entered for violating a prior rental agreement (subsec. 1). A separate pet security deposit may not exceed the greater of $2,500 or two months' rent (subsec. 2). Deposits must sit in a federally insured interest-bearing account; interest is not owed if occupancy was under nine months. Within 30 days after termination and delivery of possession, the lessor must mail an itemized statement and any refund to the tenant's last furnished address. Deductions are limited to unpaid rent, pet or negligence damage, and cleaning, ordinary wear and tear excepted.
Under N.D. Cent. Code 47-16-07.1(4), a lessor "is liable for treble damages for any security deposit money withheld without reasonable justification" — three times the wrongfully retained amount. Unclaimed deposits become subject to the state's unclaimed-property reporting requirements one year after the lease ends.
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