How to Hold and Return a Security Deposit in North Dakota

Managing a Security Deposit in North Dakota

In North Dakota, you may not charge a security deposit that exceeds one month's rent, unless you are renting to someone with a felony conviction. In that situation, you may accept up to two month's rent.

Storing the Deposit

North Dakota state law demands that a security deposit be held in an interest-bearing savings or checking account. Any interest earned on the deposit must be returned to your subtenant at the end of the sublease term if they sublet your space for more than 9 months. If they sublet for less than 9 months, the interest is yours to keep. Upon receiving the deposit, you must give your subtenant a written description of the condition of your apartment. You both need to sign the document.

Returning the Deposit

You must return your subtenant's security deposit within 30 days of the end of the sublease. You can use the security deposit to cover any unpaid rent at the end of the sublease or to cover the cost of any damages to the unit that exceed normal wear and tear. The deposit can also be used to cover the cost of cleaning the space after the sublease term is over if cleaning is required to return it to the condition in which it was sublet. You must provide your subtenant with a written, itemized list of any amount you plan to withhold from the deposit within 30 days of the end of the sublease. This list must be sent to the last known address of your subtenant.