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 lease ends and the tenant delivers possession. The rule is in N.D. Cent. Code § 47-16-07.1. Any part of the deposit the landlord keeps must be itemized, and the itemization and a written notice must be delivered or mailed to the tenant within the same 30-day window.

How the 30-day clock starts in North Dakota

The 30-day period begins after the lease terminates and the tenant delivers possession of the premises. Within that window, the landlord must mail or deliver the itemization of any deductions, with a written notice stating any amount still owed to the landlord or the refund due to the tenant, to the last address the tenant gave the landlord.

What happens if a North Dakota landlord misses the deadline

A landlord is liable for treble damages (three times the amount) on any security deposit money withheld without reasonable justification (N.D. Cent. Code § 47-16-07.1(4)). A landlord who misses the 30-day deadline and keeps deposit money without a documented, reasonable basis is exposed to that penalty, and the tenant can sue to recover the deposit.

North Dakota-specific rules worth knowing

North Dakota caps security deposits at one month's rent, or two months' rent for a tenant with a felony conviction or a prior judgment for violating a rental agreement. A pet deposit for an animal that is not a service or companion animal required by a tenant with a disability may not exceed the greater of $2,500 or two months' rent. Deposits must be held in a federally insured interest-bearing savings or checking account for the tenant's benefit, and interest is owed unless the tenant occupied the unit for less than nine months.

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 if the tenancy lasted nine months or more.

Miss the deadline and keep money without reasonable justification, and you risk treble damages on the amount withheld.

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?

North Dakota sets a 30-day window for the itemization and written notice, so do not wait for a final repair invoice. Send the itemization with the costs you can document by the deadline, and keep photos and estimates. Withholding deposit money without reasonable justification exposes you to treble damages.

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

A landlord is liable for treble damages (three times the amount) on any security deposit money withheld without reasonable justification (N.D. Cent. Code § 47-16-07.1(4)). The tenant can sue to recover the deposit.

Does North Dakota require interest on security deposits?

Yes, unless the tenant occupied the unit for less than nine months. Deposits must be held in a federally insured interest-bearing savings or checking account for the tenant's benefit, and the deposit and interest are returned at the end of the tenancy, subject to lawful deductions.

What is the maximum security deposit in North Dakota?

One month's rent, or up to two months' rent for a tenant with a felony conviction or a prior judgment for violating a rental agreement (N.D. Cent. Code § 47-16-07.1). A pet deposit for an animal that is not a service or companion animal required by a tenant with a disability may not exceed the greater of $2,500 or two months' rent.

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.