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North Dakota · C2 Jurisdictional facts · 4 min read

North Dakota Security Deposit Laws: Maximum Cap, Return Timeline, and Itemized Deductions

Direct statutory answer

Landlords in North Dakota must adhere to specific rules regarding security deposits, including a maximum cap of $2,000 and a return timeline within 30 days.

NORTH-DAKOTA STATUTORY RECORDSecurity Deposit Statute North Dakota Security Deposit Laws: MaximumCap, Return Timeline, and Itemized ESCROW TRUST ACCOUNTDedicated Escrow Account• No commingling with operating funds• Bank name & address notice to tenant• Interest-bearing escrow where mandatedINITIAL DEPOSIT: $2,400.00DEDUCTION: REPAIRS -$350.00REFUND AMOUNT: $2,050.00Itemized Accounting Rules• Written line-item repair invoices• Zero deduction for normal wear & tear• Copies of contractor receipts attached30DAYS POST-VACATEStrict Accounting Window• Statement & refund postmark deadline• Delivery to tenant forwarding address• Statutory penalty for bad-faith delay

Permitting, Zoning, or Statutory Basis

Landlords in North Dakota are governed by state law regarding security deposits. The primary statutory basis for these rules is found in North Dakota Century Code (NDCC) Section 47-10.2 and Section 47-10.3, which outline the requirements for landlords to accept, keep, and return security deposits.

Lease Clauses, Notice Periods, and Timing Requirements

Security Deposit Clause

Under NDCC Section 47-10.2, landlords must include a security deposit clause in their lease agreement that specifies the amount of the deposit, how it will be used, and when it will be returned. The clause must also outline the conditions under which the landlord may retain the deposit as damages.

Notice Periods

NDCC Section 47-10.3 mandates that landlords provide tenants with a notice of eviction or repair within 24 hours after entering the property. If repairs are necessary, landlords must give tenants a written notice of the work to be done and an estimated cost. Tenants have 7 days to either approve or reject the work.

Timing Requirements

Landlords must return security deposits within 30 days of receiving a written request from the tenant. If the landlord retains any portion of the deposit as damages, they must provide an itemized list of deductions within 30 days of returning the remaining funds. Failure to comply with these timing requirements can result in penalties and legal action.

Defensible Record-Keeping & Compliance Checklist

To ensure compliance with North Dakota security deposit laws, landlords should maintain the following records:

  1. Lease Agreement: A copy of the lease agreement that includes the security deposit clause.
  2. Security Deposit Receipts: Documentation of all payments received from tenants, including the date and amount.
  3. Damage Reports: Any written reports or photos documenting any damages to the property during the tenancy.
  4. Itemized Deduction List: If retaining any portion of the deposit as damages, an itemized list detailing each deduction.
  5. Return Notices: Written notices sent to tenants requesting the return of their security deposit or providing an itemized list of deductions.

By following these guidelines and maintaining thorough records, landlords can avoid legal disputes and ensure compliance with North Dakota’s security deposit laws.

For more information on managing properties in North Dakota, including abandoned tenant property hold periods and storage notice rules, please refer to the Abandoned Tenant Property Hold Periods and Storage Notice Rules by State (LawAtlas SEL_DisposeProperty) guide.

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