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North Dakota Security Deposit Law, in Plain English

North Dakota's deposit statute is one section with unusually specific edges: a one-month cap that stretches to two only for tenants with a felony or a prior lease judgment, a pet deposit ceiling of $2,500 or two months' rent, an interest-bearing account that pays out after nine months, and treble damages for any money withheld without reasonable justification. Here's how N.D.C.C. § 47-16-07.1 actually works, for both sides of the lease.

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30 daysDeadline after termination and delivery of possession to itemize and return, with written notice of any balance
1 month's rentThe cap — two months only for a felony conviction or a prior lease-violation judgment
$2,500 or 2 monthsThe pet deposit ceiling, whichever is greater — never for a service or companion animal
9 monthsThe occupancy needed before the deposit's accrued interest is owed to the tenant
3xTreble damages for money withheld without reasonable justification

One month's rent — two in two narrow cases, plus a capped pet deposit

A North Dakota lessor may not demand or receive security, however denominated, exceeding one month's rent. The statute allows exactly two exceptions: a lessor may accept up to two months' rent from an individual convicted of a felony, as an incentive to rent to them, and may demand up to two months from an individual who has had a judgment entered against them for violating a previous rental agreement.

A pet security deposit may be added, capped at the greater of $2,500 or two months' rent — but never for a service animal or companion animal required as a reasonable accommodation under fair-housing law.

Federally insured, interest-bearing, for the tenant's benefit — paid out after nine months

The deposit must be placed in a federally insured interest-bearing savings or checking account for the benefit of the tenant. At termination, the deposit and any accrued interest are paid to the tenant — unless the period of occupancy was less than nine months, in which case no interest is owed.

A sale of the property doesn't erase the obligation: the deposit and interest must be transferred to the new owner, the seller stays liable until that transfer happens, and the holder of the lessor's interest at termination is bound even though they never received the deposit. The section applies to the state and its political subdivisions too.

"Original state when the lessee took possession" — the statute's own words. Record it on day one.

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After move-out: 30 days to itemize, with a written notice of the balance

The deposit and accrued interest may be applied at termination to three things: damages from deterioration or injury caused by the tenant's pet or through the negligence of the tenant or guests; unpaid rent; and the costs of cleaning or other repairs that were the tenant's responsibility and are necessary to return the unit to its original state when the tenant took possession, reasonable wear and tear excepted.

The baseline for that "original state" is a document the Century Code requires up front. Under § 47-16-07.2, when the rental agreement is entered into, the landlord must give the tenant a statement describing the condition of the facilities in and about the premises. Both landlord and tenant sign it, and the signed statement is prima facie proof of the condition at the start of the tenancy.

Any portion not returned must be itemized. The itemization, the amount due, and a written notice stating any amount still due the lessor or the refund due the lessee must be delivered or mailed to the last address the tenant furnished, within 30 days after termination of the lease and delivery of possession.

Money the tenant doesn't claim within one year is reported under the state's unclaimed-property law — it goes to the state, not the landlord, and remains recoverable.

When it goes wrong: treble damages for money withheld without reasonable justification

Section 47-16-07.1(4) is one sentence: a lessor is liable for treble damages for any security deposit money withheld without reasonable justification. It doesn't require bad faith, and it doesn't add attorney's fees — but three times a wrongfully withheld deposit is usually enough to make a small claims filing worthwhile on its own.

Disputes go to small claims court, a division of district court, which hears claims up to $15,000 — informal and without attorneys. The winning file: the lease, the forwarding address, the 30-day itemization and notice or proof none arrived, the account and interest records, and dated room-by-room photos from both ends of the tenancy.

Frequently asked questions

How long does a landlord have to return a security deposit in North Dakota?

30 days after the lease ends and you deliver possession. Within that window the landlord must deliver or mail — to the last address you gave — an itemization of anything applied, the amount due, and a written notice stating any balance owed in either direction. Furnish a forwarding address before you leave.

How much can a landlord charge for a security deposit in North Dakota?

One month's rent, whatever the deposit is called — with two exceptions: up to two months from a tenant with a felony conviction (as an incentive to rent) or from a tenant with a court judgment for violating a prior lease. A pet deposit may be added, up to the greater of $2,500 or two months' rent, but never for a service or companion animal.

Do I get interest on my deposit in North Dakota?

Yes, if you stayed nine months or more. The deposit must sit in a federally insured interest-bearing savings or checking account for your benefit, and the deposit plus accrued interest comes back at termination. Occupancy under nine months earns no interest.

What can a landlord deduct from a deposit in North Dakota?

Three things: damage caused by your pet or by your or your guests' negligence; unpaid rent; and cleaning or repairs that were your responsibility and are needed to return the unit to its original state when you took possession, reasonable wear and tear excepted. Ordinary aging of paint and carpet isn't deductible.

What happens if the landlord keeps money without a good reason?

The landlord is liable for treble damages — three times — for any security deposit money withheld without reasonable justification. The section doesn't add attorney's fees, but a trebled deposit is usually worth the small claims filing on its own.

What if I never claimed my deposit?

Amounts you don't claim within one year of the lease ending are reported to the state under North Dakota's unclaimed-property law — they don't become the landlord's. You can still recover the money through the state's unclaimed-property program.

What if the building is sold?

The seller must transfer your deposit and its accrued interest to the buyer and stays liable until that happens; the new owner is then bound by the statute even though they never received the deposit from you.

Where do deposit disputes go in North Dakota?

Small claims court, a division of district court, for claims up to $15,000 — informal and without attorneys. Bring the lease, your forwarding address, the 30-day itemization or proof none arrived, and dated move-in and move-out photos — 'original state when you took possession' is the whole test.

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