Overview
North Dakota provides a straightforward framework for security deposits, with a one-month limit on standard deposits and a separate allowance for pet deposits. The law gives landlords 30 days to return deposits and requires an itemized statement of deductions.
This guide covers everything landlords and tenants need to know about security deposits in North Dakota.
Deposit Limits
North Dakota law sets the following security deposit limits:
- Standard security deposit: Maximum of 1 month's rent
- Pet deposit: An additional deposit of up to $2,500 may be collected if the tenant keeps a pet on the premises
- No interest required: Landlords are not required to pay interest on security deposits or hold them in a separate account
Pet Deposit Details
The pet deposit is separate from the standard security deposit and may only be used to cover pet-related damages. Landlords may charge up to $2,500 for a pet deposit regardless of the monthly rent amount. This deposit is in addition to the one month's rent security deposit.
cite: N.D. Cent. Code § 47-16-07.1
Allowable Deductions
Landlords may only deduct from the security deposit for the following reasons:
- Unpaid rent: Any rent owed at the time of move-out
- Damage beyond normal wear and tear: Costs to repair tenant-caused damage
- Cleaning costs: Costs to restore the unit to its move-in condition
- Lease violations: Costs arising from the tenant's breach of the lease agreement
What Constitutes Normal Wear and Tear?
Normal wear and tear includes:
- Minor scuffs on walls
- Small nail holes from hanging pictures
- Worn carpet from regular use
- Faded paint due to sunlight
- Minor marks on floors from everyday use
Damage beyond normal wear and tear includes:
- Large holes in walls
- Stained or burned carpet
- Broken windows or fixtures
- Damage caused by pets (from the pet deposit)
- Excessive filth requiring professional cleaning
Return Timeline
Landlords must return the security deposit within 30 days of the tenant vacating the unit. The return must include:
- The remaining deposit amount (if any deductions were made)
- An itemized written statement listing each deduction and the amount
- The statement and any refund must be sent to the tenant's last known address or forwarding address
If the landlord fails to return the deposit or provide the required documentation within 30 days, the tenant may be entitled to recover the full deposit amount. If the landlord acts in bad faith, the tenant may also recover damages.
cite: N.D. Cent. Code § 47-16-07.1
Pre-Move-Out Inspection
North Dakota law does not require landlords to conduct a pre-move-out inspection. However, conducting one is recommended as a best practice to help avoid disputes.
Recommended steps include:
- Conducting a walkthrough with the tenant before move-out
- Documenting the condition of the unit with photographs or video
- Comparing the move-out condition to the condition at move-in
- Giving the tenant an opportunity to address any issues before the final accounting
Dispute Resolution
If a tenant believes their deposit was wrongfully withheld, they can:
- Send a demand letter to the landlord requesting the return of the deposit
- File a claim in Small Claims Court (up to $15,000)
- File a complaint with the North Dakota Attorney General's Consumer Protection Division
If the court finds that the landlord wrongfully withheld the deposit, the tenant may recover the amount owed plus reasonable damages. North Dakota courts may consider the landlord's good or bad faith in determining any additional penalties.