American Real Estate Journal

ND · Researched October 7, 2026

North Dakota rules for property managers

North Dakota caps deposits at one month's rent (two in limited cases), requires an interest-bearing account, and allows treble damages for unjustified withholding. Evictions for unpaid rent or lease violations start with a 3-day notice of intent to evict, and local rent control is banned. Leasing property for others requires a real estate broker license.

Licensing to manage rentals in North Dakota

Checked against the official source
License required to manage for others?
yes. Real estate broker license (or salesperson employed by a broker)

A broker is anyone who, for compensation and for another, lists, leases, offers to lease, or negotiates leasing of real estate. Managing and leasing rentals for owners therefore requires a broker license, or a salesperson license under a broker.

Exemptions

Owners and lessors (and their regular employees) acting for their own property as part of managing it; attorneys handling court-supervised matters; banks and trust companies; occasional power-of-attorney transactions; receivers, trustees and similar fiduciaries; public officers.

Trust accounts

Brokers keep a separate, noninterest-bearing trust account at a federally insured institution in North Dakota for all funds belonging to others, with up to $500 of broker money for service charges. Tenant security deposits held by a lessor must be in an interest-bearing account under N.D.C.C. 47-16-07.1.

Money

Security deposit limit
One month's rent; up to 2 months in limited cases; pet deposit up to the greater of $2,500 or 2 months' rent.

Two months is allowed for a tenant with a felony conviction (as an incentive) or with a judgment for violating a prior lease. Service and assistance animals cannot be charged a pet deposit.

N.D.C.C. § 47-16-07.1(1)-(2)Checked against the official source
Deposit return deadline
30 days after the lease ends and the tenant gives up possession, with an itemized notice.

Deduct only for damage beyond reasonable wear, unpaid rent, and cleaning or repairs needed to restore move-in condition. Mail to the last address the tenant gave. Withholding without reasonable justification can cost treble damages.

N.D.C.C. § 47-16-07.1(3)-(4)Checked against the official source
Deposit interest and holding rules
Federally insured interest-bearing account; pay interest if occupancy was 9 months or more.

Deposits and interest transfer to the buyer when you sell, and you stay liable until they do. Unclaimed amounts after one year are reported as unclaimed property.

N.D.C.C. § 47-16-07.1(1), (3), (5)Checked against the official source
Late fees
No state statute caps late fees.

Put late fee terms in the lease and keep them reasonable. You cannot charge a fee for accepting rent by cash, check or money order.

Application and screening fees
No state statute limits application fees.

Keep fees reasonable and disclose them up front.

No statuteSecondary source
Rent increase notice
30 days' written notice before the end of the month for month-to-month tenancies.

The change takes effect at the end of the month if the tenant stays. The tenant may instead end the tenancy at month's end with 25 days' notice.

N.D.C.C. §§ 47-16-07, 47-16-15(3)Checked against the official source
Rent control
Local rent control is banned.

Political subdivisions cannot control rent on private residential or commercial property.

N.D.C.C. § 47-16-02.1Checked against the official source

Notices and eviction

Notice for unpaid rent
3 days' written notice of intent to evict once rent is 3 days past due.

Serve the notice like a summons or, if the tenant cannot be found, by sheriff or process server posting on the premises.

N.D.C.C. §§ 47-32-01(4), 47-32-02Checked against the official source
Notice for lease violations
3 days' written notice of intent to evict for a material lease violation.

Disturbing other tenants' peaceful enjoyment is a separate eviction ground. The statute does not give a cure period.

N.D.C.C. §§ 47-32-01(7)-(8), 47-32-02Checked against the official source
Ending a month-to-month
At least one calendar month's written notice, given at any time.

Rent is due through the termination date. Lease clauses requiring tenants to give more than one month's notice must be initialed by the tenant.

N.D.C.C. § 47-16-15(2), (4)Checked against the official source
Eviction timeline
3-day notice, then a summons with an appearance date 3 to 15 days after issuance.

If you win, the court orders immediate restitution. A hardship stay is limited to 5 days and is not available for disturbance cases.

N.D.C.C. §§ 47-32-02, 47-32-04Checked against the official source
Abandoned property
Property worth $2,500 or less may be disposed of 28 days after the tenant has clearly vacated.

You keep sale proceeds and may take storage and moving costs above proceeds from the deposit. After an eviction and special execution, you hold a lien for reasonable storage and moving costs.

N.D.C.C. § 47-16-30.1Checked against the official source

Access and condition

Landlord entry
Reasonable hours with tenant consent; notice of a set time counts as consent if the tenant does not object.

Emergencies, suspected abandonment, or a reasonable belief of a substantial lease violation allow entry at any time. Notice can be posted or delivered. Do not use entry to harass.

N.D.C.C. § 47-16-07.3Checked against the official source
Repairs and habitability
Keep premises fit, code-compliant and supplied with water, hot water and heat.

Tenants may repair and deduct, or move out, if you do not fix problems within a reasonable time after notice. Single-family landlords and tenants may agree in writing that the tenant handles some duties.

N.D.C.C. §§ 47-16-13, 47-16-13.1Checked against the official source
Required disclosures
Signed move-in condition statement; 30-day notice before an automatic renewal takes effect.

Without the renewal notice, the lease converts to month-to-month. Federal lead paint disclosure applies to pre-1978 housing.

N.D.C.C. §§ 47-16-07.2, 47-16-06.1Checked against the official source

Fair housing

State fair housing protections
Adds age, marital status and public assistance status to federal classes.

State list: race, color, religion, sex, disability, age, familial status, national origin, and status with respect to marriage or public assistance. Owner-occupied buildings of up to 4 units are exempt.

N.D.C.C. §§ 14-02.5-02, 14-02.5-09Checked against the official source

Recent and upcoming changes

Effective 2025-08-01
Sealing of eviction records

Tenants who resolved all unpaid rent and damage claims may move to seal eviction records 7 years after satisfying the eviction order if not evicted again in that time. Domestic violence victims evicted over an incident may seek sealing once the assailant is convicted or a protection or restraining order issues.

Local rules. State law bars cities and other political subdivisions from controlling rent on private residential or commercial property (N.D.C.C. 47-16-02.1). North Dakota Century Code chapter 47-16

Managing rentals in North Dakota?

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