North Dakota Residential Lease Agreement

Introduction

A North Dakota residential lease agreement is a legally binding contract between a landlord and tenant that establishes the terms and conditions for renting residential property. This agreement covers essential elements including rent payments, security deposits, fees, utilities, property rules, and the rights and responsibilities of both parties. ^[1]

North Dakota landlord-tenant law is primarily governed by Chapter 47-16 of the North Dakota Century Code (NDCC), titled "Leasing of Real Property." ^[2] These statutes establish the legal framework for rental agreements, security deposits, property maintenance, tenant remedies, and landlord entry rights.

Required Disclosures

Lead-Based Paint Disclosure

Federal law requires landlords to provide lead-based paint disclosures for residential units built before 1978. ^[3] Before a tenant signs a lease, landlords must:

• Provide a copy of the EPA pamphlet "Protect Your Family From Lead In Your Home"
• Disclose the presence of any known lead-based paint or lead-based paint hazards
• Provide any available records or reports concerning lead-based paint and hazards
• Include specific warning language in the lease agreement
• Obtain signed acknowledgment from the tenant

Landlords must retain signed copies of the disclosures for three years after the lease begins. ^[4] Failure to comply may result in civil fines of up to $10,000 per violation and criminal penalties of up to $10,000 and one year in jail per violation. ^[5]

**Exemptions: **The disclosure requirement does not apply to zero-bedroom units, leases for 100 days or less, or housing specifically for the elderly or persons with disabilities (unless a child under six lives or is expected to live there). ^[6]

Property Condition Disclosure (move-In Inspection)

North Dakota law requires landlords to provide tenants with a written statement describing the condition of the rental unit at the beginning of the tenancy. ^[7] This statement must detail the condition of the facilities and must be signed by both the landlord and tenant. This document serves as a baseline record of the property's condition and protects both parties by establishing what pre-existing damage or wear existed before the tenant moved in.

Security Deposits

Maximum Security Deposit Amount

Under North Dakota law, the maximum amount a landlord may demand for a security deposit is one month's rent. ^[8] However, there are specific exceptions that allow landlords to collect higher deposits in certain circumstances:

Tenants With Felony Convictions: Landlords May Accept Up to Two Months' Rent As a Security Deposit From Individuals Convicted of a Felony Offense As an Incentive to Rent the Property. ^[9]

Tenants With Prior Lease Violations: Landlords May Demand Up to Two Months' Rent From Individuals Who Have Had a Judgment Entered Against Them for Violating the Terms of a Previous Rental Agreement. ^[10]

Pet Security Deposits: Landlords May Charge a Pet Security Deposit for Tenants Keeping Animals That Are Not Service Animals or Companion Animals Required As a Reasonable Accommodation Under Fair Housing Laws. the Pet Security Deposit May Not Exceed the Greater of $2,500 or Two Months' Rent. ^[11] for Example, If Monthly Rent Is $1,000, the Maximum Pet Deposit Would Be $2,500; If Monthly Rent Is $1,500, the Maximum Pet Deposit Would Be $3,000 (two Months' Rent).

Security Deposit Storage Requirements

North Dakota law mandates that landlords who require security deposits must deposit the money in a federally insured interest-bearing savings or checking account for the benefit of the tenant. ^[12] This requirement ensures that tenant deposits are protected and earn interest during the tenancy.

Interest on Security Deposits

Landlords are required to pay interest on a tenant's security deposit if the tenant's period of occupancy is at least nine months. ^[13] For leases lasting nine months or longer, the deposit must accrue interest, and the landlord must pay this interest to the tenant. For shorter-term leases (less than nine months), there is no statutory requirement to pay interest.

Security Deposit Return Timeline

Landlords must return the tenant's security deposit within 30 days after the tenant has relinquished control of the rental unit. ^[14] If the landlord makes deductions from the security deposit, they must provide the tenant with an itemized written list detailing the charges and deductions for each item. ^[15]

Allowable Deductions From Security Deposits

Landlords may use the security deposit to cover:

• Repairs for damages caused by the tenant or their guests (beyond normal wear and tear)
• Reasonable cleaning costs after the tenant vacates
• Unpaid rent ^[16]

Penalties for Wrongful Withholding

If a landlord withholds security deposit funds without reasonable justification, they may be liable for treble damages (three times the amount wrongfully withheld). ^[18] This significant penalty serves as a strong deterrent against landlords improperly keeping tenant deposits.

Security Deposit Transfer Upon Property Sale

If a landlord sells the rental property during an active lease term, they must transfer the security deposit (plus any accrued interest) to the incoming landlord. ^[19] This ensures that tenants' deposits remain protected even when property ownership changes.

Rent Payment Terms

Late Fees

North Dakota does not have a statutory maximum limit on late fees for rent. ^[20] However, landlords must follow these requirements:

• Lease Disclosure: **The lease must clearly state if there is a late fee, the amount of the fee, and when it will be charged. Landlords may not impose a late fee if the lease agreement does not contain a clause concerning late fees. ^[21]
• Reasonableness: **Late fees must be reasonable and should represent a reasonable estimate of the costs that the landlord incurs because rent is late (such as interest, collection costs, or administrative expenses). ^[22]
• No Statutory Grace Period: **North Dakota law does not mandate a grace period for rent payments. ^[23] The lease determines when rent is considered late and when late fees may be assessed.

Rent Increases

**Fixed-Term Leases: **Landlords cannot raise rent during the term of a fixed-term lease (such as a one-year lease) unless the lease agreement specifically allows for rent increases. ^[24]

**Month-to-Month Leases: **For month-to-month rental agreements, landlords must provide at least 30 days' written notice before increasing the rent. ^[25] The notice must inform the tenant of the new rental amount and any other changed terms before the increase takes effect. ^[26]

**Mobile Home Lot Rentals: **For mobile home lot rentals on a month-to-month basis, landlords must give 90 days' notice before increasing rent. ^[27]

**No Rent Control: **North Dakota does not have rent control laws, meaning there is no legal cap on the amount of a rent increase. ^[28]

**Retaliatory Rent Increases: **Landlords are prohibited from increasing rent in retaliation against a tenant who has exercised a legal right, such as filing a legitimate complaint to a local housing authority concerning their tenancy. ^[29]

Landlord's Right to Enter

North Dakota law regulates when and how landlords may enter rented premises. ^[30] The governing statute is NDCC § 47-16-07.3, which establishes the following requirements:

**Notice Requirement: **Landlords must provide "reasonable notice" before entering the rental unit. ^[31] While North Dakota law does not specify an exact number of days that constitutes "reasonable notice," it must be determined based on the circumstances.

**Consent and Time Certain: **Unless it is impractical to do so, landlords must first notify the tenant and receive consent to enter at a certain time. ^[32] Consent shall be presumed if the tenant fails to object to access after notice of intent to enter at a time certain has been given. ^[33]

**Reasonable Times: **Landlords may only enter at reasonable times. ^[34] This generally means during normal business hours and not at times that would unreasonably disturb the tenant.

Tenant Rights and Remedies

Repair and Deduct Remedy

North Dakota law provides tenants with a "repair and deduct" remedy when landlords fail to maintain the rental property. ^[35] Under NDCC § 47-16-13, if a landlord fails to make necessary repairs, the tenant has several options:

Repair and Deduct: the Tenant Can Arrange for Repairs and Deduct the Actual and Reasonable Expenses From the Rent. ^[36]

Recover Costs: the Tenant Can Recover the Cost of Repairs From the Landlord Through Another Lawful Manner, Such As a Lawsuit. ^[37]

Vacate Premises: the Tenant Can Move Out of the Rental and Not Have to Pay Further Rent. ^[38]

Important Requirements:

• Tenants must promptly notify the landlord in writing when repairs are needed
• The landlord must be given a reasonable amount of time to complete the repair
• If the landlord fails to make the repair, the tenant can perform the repair and deduct the expense
• Tenants should provide written notice of their intention to make repairs themselves
• The tenant must first pay for the repairs out of pocket, then deduct the actual expenses from rent ^[39]

Protections Against Landlord Retaliation

While North Dakota does not have comprehensive anti-retaliation statutes like many other states, tenants still have protections against retaliatory actions. ^[41]

**Retaliatory Rent Increases: **Landlords are prohibited from increasing rent in retaliation against a tenant who has exercised a legal right, such as filing a legitimate complaint to a local housing authority. ^[42]

**Retaliatory Eviction: **It is illegal for landlords to evict tenants in retaliation for exercising legal rights or as a form of discrimination, including for disclosing status as a domestic abuse victim. ^[43] While North Dakota's law on retaliatory eviction isn't as clearly defined as in other states, tenants can claim that an eviction is the result of illegal discrimination or retaliation for exercising legal rights. ^[44]

Lease Termination

Terminating Month-To-Month Leases

For month-to-month rental agreements, either the landlord or tenant may terminate the tenancy by giving at least 30 days' written notice. ^[45] This notice may be given at any time during the tenancy for any reason, and the parties are not required to provide a reason for termination. ^[46] The non-terminating party must receive notice at least 30 calendar days before the date of termination. ^[47]

If the parties have agreed in writing to a longer notice period, that longer period applies. ^[48]

Eviction for Non-Payment of Rent

When a tenant fails to pay rent, North Dakota law requires specific procedures before eviction. ^[49] The process includes:

**3-Day Notice to Pay or Quit: **According to NDCC § 47-32-01, rent is considered late if it is not received within three days after the due date. ^[50] A landlord must serve the tenant a written 3-Day Notice to Pay or Quit, which gives the tenant three days to either pay the balance due or move out. ^[51]

**Opportunity to Cure: **If the tenant pays the full amount owed within the three-day period, the eviction process does not continue. ^[52]

**Court Proceedings: **If the tenant does not pay or vacate within three days, the landlord can proceed with filing a Summons and Complaint with the court. The hearing will be scheduled between three and fifteen days after service of the court documents. ^[53]