North Dakota Statewide Rule
North Dakota Security Deposit Law: 1-Month Cap, 30-Day Return
Key Facts
- Deposit cap
- 1 month's rent (up to 2 months for a felony conviction or prior rental-agreement judgment; pet deposit max greater of $2,500 or 2 months' rent)
- Return deadline
- 30 days after termination and delivery of possession
- Itemized statement
- Required; mailed with refund and written notice to tenant's last furnished address
- Statute
- N.D. Cent. Code 47-16-07.1
- Penalty
- Treble damages for any deposit withheld without reasonable justification
Summary
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.
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.
Full Breakdown
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.
Violations & Penalties
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.
Frequently Asked Questions
How much can a landlord charge for a security deposit in North Dakota?
How long does a landlord have to return a security deposit in North Dakota?
What can a landlord deduct from a security deposit in North Dakota?
Sources
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