North Dakota security deposit rules.
The North Dakota rules for residential security deposits in plain English: how much can be charged, how fast it comes back, whether interest is owed, and what catches operators out.
Last reviewed · Statute: N.D. Cent. Code § 47-16-07.1 · Not legal advice
How much can be charged
Capped at one month’s rent; up to two months may be taken from an applicant with a felony conviction or a prior lease-violation judgment. A separate pet deposit (not for assistance animals) may be up to the greater of $2,500 or two months’ rent.
When it has to come back
30 days from termination, with itemised deductions.
Interest
Interest actually accrued on the required interest-bearing account is paid to the tenant at termination. No interest is owed if occupancy lasted less than nine months.
Where the money has to sit
Deposits must be held in a federally insured interest-bearing savings or checking account for the benefit of the tenant.
What catches operators out
- 9-month interest trigger is unusual — affects most year-long leases.
- Deposits withheld without reasonable justification carry treble damages.
What this looks like with Standby in North Dakota.
When a resident takes a Standby certificate there is no cash deposit to hold, so the cap, the return deadline and the interest rules above have nothing to attach to. You are covered up to the full deposit and draw on it when you need to.
When a resident pays cash instead, Standby handles that deposit under your lease and North Dakota law, so your team is not tracking return deadlines by hand.
This page summarises the most common single-family and multifamily residential rule in North Dakota. Furnished units, senior leases, mobile-home tenancies and short-term rentals can differ, and city ordinances may override the state default. Check the statute before relying on a figure for a specific lease.