Most states, such as North Dakota, do not have a legal limit on how much a landlord can charge for damages except that the charges must be reasonable.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
“Normal wear and tear” is deterioration that occurs naturally as a result of the tenant using the property as it was designed to be used.
“Damage” means destruction to the rental unit that occurs because of abuse or negligence by a tenant during the course of the tenancy.
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Landlords can charge a tenant for nail holes if they damage the walls in a way that is not a result of ordinary enjoyment of the rental unit.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage and thus, chargeable to the tenant.
North Dakota law allows landlords to charge for cleaning limited to bringing the unit back to its original condition at the start of the lease, excluding normal wear and tear. [2]
In North Dakota, landlords can charge for painting, except for normal wear and tear. For example, if the tenant:
Ordinary wear includes:
Landlords can charge for repainting if the damage is not the result of normal use. This includes stains, large or deep scratches, and water damage.
Landlords must return a security deposit with interest (if due) by mail or hand-delivery with a written notice and an itemized statement of deductions, if any, to the tenant’s last-known address no later than 30 days after the lease term ends and the tenant vacates the rental unit. [3]
North Dakota landlords have 30 days [4] after the lease term ends and the tenant vacates the rental unit to return any unused portion of the security deposit.
North Dakota law requires landlords to provide the actual interest earned [5] on held security deposits except when the lease term is shorter than nine months. [6] If due, the interest must be provided when the security deposit is returned. However, both the security deposit and interest can be applied toward damages.
Written notice must be mailed or hand-delivered to the tenant’s last-known address and must include the amount of the security deposit with interest due, if any, to the tenant, plus a written notice [7] with an itemized statement of deductions, if any. [8]
The written notice must state [9] either:
If a tenant does not claim what is left of their security deposit within one year after the lease term ends, the landlord is required to report it as unclaimed property. [10]
North Dakota law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
If landlords do not return the security deposit within the 30-day period, tenants can file for damages in court up to three times the amount wrongfully withheld [11] plus court costs. [12]
Tenants can also take legal action against a landlord for:
If a landlord fails to return the security deposit, the tenant can file a dispute in Small Claims Court if the amount of damages is less than $15,000. [13] If the amount is greater, the tenant must file in the local District Court.
A small claims case for a security deposit must be filed within 6 years. An attorney is not required but permitted. Cases are filed in the Small Claims Court within the county where the rental property is located or where the defendant lives. The filing fee is $10.
A lessor may apply security deposit money…towards…damages…or injuries to the real property or dwelling by the lessee’s pet or through the negligence of the lessee or the lessee’s guest…unpaid rent…costs of cleaning or other repairs…
A lessor may apply security deposit money…towards…the costs of cleaning or other repairs which were the responsibility of the lessee, and which are necessary to return the dwelling unit to its original state when the lessee took possession, reasonable wear and tear excepted.
…the amount due must be delivered or mailed to the lessee at the last address furnished lessor, along with a written notice within thirty days after termination of the lease and delivery
of possession by the lessee.
…the amount due must be delivered…within thirty days after termination of the lease and delivery
of possession by the lessee.
…any interest accruing on the deposit must be paid to the lessee upon termination of a lease…
A lessor is not required to pay interest on security deposits if the period of occupancy was less than nine months in duration…
…the amount due must be delivered or mailed to the lessee at the last address furnished lessor, along with a written notice…
Application of any portion of a security deposit not paid to the lessee upon termination of the lease must be itemized by the lessor.
The notice must contain a statement of any amount still due the lessor or the refund due the lessee.
Any amounts not claimed from the lessor by the lessee within one year of the termination of the lease agreement are subject to the reporting requirements of section 47-30.2-04.
A lessor is liable for treble damages for any security deposit money withheld without reasonable justification.
The court may award the costs of the action to the prevailing party
…”small claims court”…is confined to cases for recovery of money…does not exceed fifteen thousand dollars…
