North Dakota security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
{{ state }} security deposit account
Keep funds in a federally insured security deposit bank account in North Dakota. This can be an interest or non-interest-bearing savings or checking account. Keeping a separate tenant security deposit in North Dakota ensures the money is protected and simplifies your record-keeping.
{{ state }} security deposit
limits
The maximum security deposit North Dakota landlords can charge is one month’s rent. However, if your tenant has a felony conviction or a prior judgment for a lease violation, you may charge up to two months’ rent. The average security deposit in North Dakota typically mirrors the state's monthly rent range of $900 to $1,300.
{{ state }} security deposit interest
State law security deposit rules mandate interest on security deposit in North Dakota if the lease lasts longer than 9 months. While some states have a fixed security deposit interest rate, North Dakota requires you to pay the actual interest earned in the account to the tenant when the lease ends.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
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Hold each security deposit in separate non-interest or interest-bearing accounts that earn up to [v="apyvalue"] APY².
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
1 month’s rent (2 months’ rent in case the tenant has a felony conviction)
Yes, for leases > 9 months
No escrow, but a separate interest-bearing savings or checking account
Unpaid rent, utilities, repairs, lease violations, and cleaning costs
30 days
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in North Dakota?
North Dakota's security deposit limit is one month’s rent and two months’ for tenants with felony convictions. You can collect the first and last month's rent plus a deposit, but it shouldn’t exceed the state limit.
Is interest required on tenant security deposits in North Dakota?
Yes, North Dakota security deposit interest is mandatory if the tenant stays for more than nine months. It’s mandatory to hold these funds in an interest-bearing landlord-tenant security deposit bank account in North Dakota, as the accrued interest belongs to the tenant.
How should I issue a security deposit receipt to tenants in North Dakota?
While the state doesn't mandate a specific receipt format, you should provide one that includes the amount, the date, and the name of the financial institution where you’ve kept the tenant’s security deposit for full transparency.
How many days to return a security deposit in North Dakota?
You get 30 days to return the tenant's security deposit in North Dakota residents after they move out and the lease ends.
What can a landlord deduct from a security deposit North Dakota?
Landlord security deposit rules allow you to use the funds to cover unpaid rent, utilities, cleaning costs, and repairs for damage beyond normal wear and tear. If you fail to provide an itemized list and the remaining balance within 30 days, you could be liable for double damages. These rules apply whether you rent out a house rental, apartment, or condo.
Can a security deposit be used for unpaid rent in North Dakota?
Yes, you can use the funds to cover any rent the tenant owes when they move out. Although a security deposit escrow account in North Dakota is not mandatory, keeping these funds in a separate savings or checking account makes deductions easier.
Can landlords keep a security deposit for breaking a lease in North Dakota?
Yes, if a tenant is breaking lease terms early, the landlord's security deposit in North Dakota statutes allows you to use the deposit to cover financial losses (such as rent during vacancy) or damages resulting from the early move-out.
