North Dakota Security Deposit Return Deadline

North Dakota security deposit return deadline at a glance

North Dakota landlords have 30 days to return a tenant's security deposit after the tenancy ends and the tenant delivers possession. The rule is in N.D. Cent. Code § 47-16-07.1. The landlord must provide an itemized statement of any deductions within the same 30-day window.

How the 30-day clock starts in North Dakota

The 30-day period begins when the lease terminates and the tenant delivers possession of the premises. The landlord must mail or deliver the deposit (or a written itemization of deductions) to the tenant's forwarding address or last known address within that window.

What happens if a North Dakota landlord misses the deadline

A landlord who fails to return the deposit or provide an itemized statement within 30 days forfeits the right to withhold any portion. The tenant can recover the full deposit in a lawsuit. North Dakota does not impose a statutory multiplier penalty (no 2x or 3x), but the forfeiture rule means the landlord loses all deduction rights.

North Dakota-specific rules worth knowing

North Dakota caps security deposits at one month's rent (or the actual damage amount for pet deposits, which can be additional). North Dakota requires landlords to pay interest on deposits at a rate of at least 1% above the current passbook savings rate. Deposits must be held in a federally insured interest-bearing savings or checking account in a North Dakota financial institution.

Worked example: returning a security deposit in North Dakota

Your tenant moves out of a $1,200/month apartment on June 1. The security deposit was $1,200 (one month's rent, the North Dakota cap). During the walk-through, you document $200 in cleaning costs and $150 for wall damage.

In North Dakota, you have 30 days to return the deposit (or the balance with an itemized statement of deductions). Your deadline is July 1.

Deductions total $350. You owe the tenant $850, which you mail with an itemized list: cleaning ($200), wall repair ($150). Include any accrued interest.

Miss the deadline and you forfeit the right to retain any portion of the deposit.

What experienced landlords do differently

• Do the move-out walk-through with the tenant present and both parties signing the checklist. Deductions documented together are rarely disputed.
• Take timestamped photos at both move-in and move-out. Side-by-side photo evidence is the fastest way to resolve any deduction disagreement.
• When in doubt, return the full deposit. The legal cost of defending a $300 deduction (court fees, your time, potential penalties for wrongful withholding) almost always exceeds the deduction itself.

Related North Dakota compliance tools

Landlords in North Dakota deal with more than just deposit returns. These free calculators cover the other compliance deadlines you need to track:

• North Dakota Eviction Timeline Estimator — Estimate the full eviction process from notice to possession
• North Dakota Maximum Late Fee Calculator — Calculate the highest late fee your lease can enforce
• North Dakota Rent Increase Notice Calculator — Find the required notice period for your planned increase
• North Dakota Security Deposit Interest Calculator — Calculate the interest you owe on held deposits

See all property management tools for investment, financing, and operations calculators.

Frequently asked questions about North Dakota security deposits

What if I can't get repair estimates before the deadline?

Most states allow you to send a preliminary itemized statement of anticipated deductions within the deadline, then follow up with a final accounting once you have actual costs. The key is notifying the tenant in writing before the deadline expires. Silence past the deadline can forfeit your right to any deductions.

What is the penalty if a North Dakota landlord misses the deposit deadline?

Forfeiture of the right to withhold any portion. The tenant can recover the full deposit in a lawsuit. North Dakota does not impose a statutory multiplier penalty.

Does North Dakota require interest on security deposits?

Yes. Landlords must pay interest at a rate of at least 1% above the current passbook savings rate. Deposits must be in a federally insured interest-bearing account in a North Dakota financial institution.

What is the maximum security deposit in North Dakota?

One month's rent (N.D. Cent. Code § 47-16-07.1). An additional pet deposit for actual pet damages may be collected separately.

Can a North Dakota landlord charge a nonrefundable deposit?

North Dakota law does not explicitly authorize nonrefundable deposits. Any amount labeled as a deposit is generally treated as refundable. Nonrefundable fees should be structured as separate lease fees, not deposits.