North Dakota Security Deposit Law: Deadlines & Penalties

North Dakota landlords have 30 days after the lease ends and the tenant gives up possession to return the security deposit, with any interest it has earned. A landlord may only deduct for unpaid rent, damage caused by the tenant, a guest or a pet through negligence, and cleaning or repairs needed to return the unit to its move-in condition, with reasonable wear and tear excepted.

Any part of the deposit that is kept must be itemized in a written notice mailed or delivered to the last address the tenant gave the landlord. The notice must state the refund due to the tenant or any amount the landlord says is still owed. Because the notice goes to the address on file, giving the landlord a forwarding address in writing is a sensible step.

North Dakota is unusual in requiring deposits to be held in a federally insured, interest-bearing account, with the interest paid to the tenant when occupancy lasted at least nine months. Deposits are generally capped at one month's rent, with limited exceptions allowing up to two months, plus a separate pet deposit of up to the greater of $2,500 or two months' rent. A landlord who keeps deposit money without reasonable justification is liable for treble damages.