North Dakota Security Deposit Law: A Guide for Landlords
North Dakota limits a residential security deposit to one month's rent in most cases, requires it to be held in a federally insured interest-bearing account, and requires the landlord to return it with an itemized list of any deductions within 30 days after the lease ends and the tenant moves out. The rules are in North Dakota Century Code section 47-16-07.1.
How much can a landlord charge?
The deposit cannot exceed one month's rent, with two exceptions: up to two months' rent from a person convicted of a felony, as an incentive to rent to that person, and up to two months' rent from a person with a prior court judgment for violating a rental agreement. A separate pet deposit is allowed, capped at the greater of $2,500 or two months' rent. A pet deposit cannot be charged for a service animal or a companion animal required as a disability accommodation.
Where the deposit must be held
Deposits must be kept in a federally insured interest-bearing account for the tenant's benefit. The deposit and the interest go back to the tenant at the end of the lease, but no interest is owed if the tenant lived there less than nine months.
What a landlord can deduct
Unpaid rent, damage caused by the tenant's or a guest's negligence, damage from a pet, and the cost of cleaning or repairs needed to return the unit to its move-in condition. Reasonable wear and tear cannot be deducted.
Returning the deposit
Any amount withheld has to be itemized in writing. The itemized statement and the refund must be delivered or mailed to the tenant's last known address within 30 days after the lease ends and the tenant gives up possession. A landlord who withholds deposit money without reasonable justification can be liable for three times the amount wrongly withheld.
Move-in statement and sale of the property
At the start of the lease the landlord must give the tenant a written statement describing the condition of the unit, signed by both parties (NDCC 47-16-07.2). That statement is the baseline for any later deductions. If the property is sold, the deposit and interest transfer to the new owner, and the original landlord stays responsible until the transfer is made.
Common questions
What is the maximum security deposit in North Dakota?
One month's rent in most cases. Up to two months' rent is allowed in two limited situations, and a pet deposit can be up to the greater of $2,500 or two months' rent.
How long does a landlord have to return a security deposit in North Dakota?
30 days after the lease ends and the tenant has moved out, along with an itemized list of any deductions.
Does a North Dakota landlord have to pay interest on a security deposit?
Yes, if the tenant lived in the unit for nine months or more. The deposit must be held in an interest-bearing account.
Can a landlord charge for normal wear and tear?
No. Deductions are limited to unpaid rent, damage beyond reasonable wear and tear, and cleaning or repairs needed to restore the unit.
This page is general information for North Dakota rental owners and is not legal advice. Laws change, so check the current North Dakota Century Code or talk with an attorney about your situation. Reviewed November 2026.
Related: North Dakota Eviction Process | North Dakota Lease Termination Notice | Tenant Placement Service | Owner Services
