North Dakota Security Deposit Laws: Limits & Refunds
Learn about North Dakota security deposit limits, the 30-day return deadline, and mandatory interest requirements for long-term tenancies.
Legal Disclaimer
This content is for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. Laws change frequently — always verify current regulations and consult a licensed attorney in your jurisdiction for advice specific to your situation. Landager is a property management platform, not a law firm.Information last verified: May 2026.
North Dakota Residential Security Deposit Laws
Governed by the North Dakota Century Code (effective since 1 July 1901), security deposit statutes (specifically NDCC § 47-16-07.1) are uniquely detailed. While the state aims to protect tenants from excessive upfront costs, it provides landlords with specific, tiered exceptions to manage high-risk renters and pets.
1. Statutory Deposit Limits
North Dakota imposes a strict ceiling on security deposits based on the tenant's history and the presence of pets.
- The Standard Limit: A landlord cannot demand a security deposit exceeding one month's rent.
- The High-Risk Exception: Landlords may charge up to two months' rent if the tenant has been convicted of a felony or has a prior judgment for violating a rental agreement.
- The Pet Deposit Limit: Landlords who allow pets can charge a separate pet deposit. By law, the pet deposit cannot exceed the greater of $2,500 or two months' rent. (Note: Service or emotional support animals are exempt from pet deposits under the Fair Housing Act).
2. Mandatory Interest Payments
North Dakota is one of the few states that requires landlords to pay tenants interest on their deposits for most tenancies.
- The Escrow Requirement: All tenant security deposits must be deposited in a federally insured, interest-bearing savings or checking account. The landlord cannot commingle these funds with personal operating capital.
- The 9-Month Rule: Interest payment is mandatory if the tenant occupies the property for at least nine months.
- The Rate: The landlord must pay the interest accrued on the account to the tenant upon lease termination.
3. The 30-Day Return Deadline
When a tenancy terminates and the tenant vacates, the landlord has exactly 30 days to return the security deposit and accrued interest.
- Itemized Deductions: If any portion is withheld, the landlord must provide a written, itemized list detailing the deductions.
- Permitted Deductions: Landlords can legally withhold funds to cover unpaid rent, physical damages exceeding "normal wear and tear," or cleaning costs required to restore the unit to its original condition.
- Notice of Address: The tenant must provide a forwarding address; however, the landlord's obligation to attempt return remains.
The Penalty for Non-Compliance
Failure to comply with NDCC § 47-16-07.1 carries significant penalties. If a landlord fails to return the deposit or the itemized statement within 30 days, or acts in "bad faith," they may be liable in a North Dakota District Court for:
- Treble Damages: Up to three times the amount wrongfully withheld.
- Attorney's Fees: Reasonable legal costs incurred by the tenant.
Official Law Citation: This information is derived directly from NDCC § 47-16-07.1. For the absolute legislative text, consult the North Dakota Legislative Council.
How Landager Helps
Landager tracks lease terms, automated rent collection, and maintenance workflows—making it easy to stay compliant with North Dakota regulations.
Sources & Official References
Frequently Asked Questions
▶What are the North Dakota security deposit rules and return deadlines?
North Dakota has specific rules governing how much landlords can charge for security deposits, how deposits must be held, and the deadline for returning deposits after a tenant moves out. Landlords must provide an itemized statement of any deductions made from the deposit. Failure to comply with deposit return deadlines can result in penalties and the forfeiture of the landlord's right to claim deductions.
▶What are the North Dakota landlord-tenant laws every property owner should know?
Residential tenancies in the Peace Garden State are governed by the North Dakota Century Code (NDCC) Chapter 47-16 (Leasing of Real Property). This guide covers the essential compliance requirements for property owners and landlords.
Read the complete guide▶What is the North Dakota eviction process and how long does it take?
The North Dakota eviction process requires landlords to provide written notice to tenants before filing a court action. The type and length of notice depends on the reason for eviction — typically shorter for non-payment of rent and longer for lease violations or no-fault terminations. Self-help evictions (changing locks, removing belongings, shutting off utilities) are illegal in North Dakota. The full court process varies but typically takes several weeks.
Read the complete guide▶What are the North Dakota rent increase laws and caps for landlords?
North Dakota has specific rules governing when and how landlords can increase rent. During a fixed-term lease, rent generally cannot be increased unless the lease explicitly allows it. For month-to-month tenancies, landlords must provide proper written notice before an increase takes effect. Check whether North Dakota has any local rent control ordinances that may impose additional caps or requirements.
Read the complete guide▶What is the grace period for late rent in North Dakota?
North Dakota has specific rules regarding grace periods for late rent and the amount that can be charged as a late fee. Late fee provisions must be stated in the lease agreement, and fees must be reasonable. Check North Dakota state law and any applicable local ordinances for the exact grace period and late fee limits that apply to your rental property.
Read the complete guide▶What disclosures must North Dakota landlords provide to tenants?
North Dakota landlords must provide certain disclosures to tenants before or at the time of lease signing. Common required disclosures include lead-based paint hazards (for pre-1978 buildings, a federal requirement), the identity of the landlord or property manager, and any known material defects in the property. Additional state-specific disclosures may include flood risk, mold hazards, and environmental conditions.
Read the complete guide▶What are the North Dakota lease requirements for rental properties?
North Dakota recognizes both written and oral leases, though written leases are strongly recommended for terms longer than one year. Lease agreements should include the rent amount, payment due date, security deposit terms, maintenance responsibilities, and rules regarding entry, pets, and subletting. Certain lease clauses that waive tenant statutory rights may be void and unenforceable under North Dakota law.
Read the complete guide▶What are North Dakota landlord maintenance obligations and habitability standards?
North Dakota landlords must maintain rental properties in a condition that is fit for habitation and complies with applicable building, housing, and health codes. This includes maintaining structural integrity, plumbing, heating and cooling systems, electrical systems, and pest control. Tenants typically have the right to request repairs in writing, and if repairs are not made within a reasonable time, tenants may have legal remedies available.
Read the complete guide📬 Get notified when these laws change
We'll email you when landlord-tenant laws update in No spam — only law changes.
