Chapter 47-16 of the North Dakota Century Code governs month-to-month lease agreements. Security deposits must be kept in an interest-bearing account that is FDIC insured. The landlord must return the security deposit and the interest to the tenant upon lease termination. According to 47-16-07.1, the security deposit may not be more than two months’ rent if the prospective tenant is convicted of a felony or has violated a previous residential lease agreement. A pet security deposit of up to two months’ rent may also be charged but may not be more than $2,500. The landlord may apply the security deposit toward unpaid rent, damage to the property that is determined to exceed normal wear and tear, or reasonable cleaning costs to bring the condition of the premises back to rentable condition. Any costs deducted must be itemized and given to the tenant with a written notice within 30 days of the lease termination.
Landlords and property managers should understand the state laws and federal laws related to rental real estate before leasing it to tenants. Otherwise, they should seek legal advice to understand better how a month-to-month tenancy operates.
Under § 47-16-07.2, the notice period for a lease termination is 30 days. It must be a written notice regardless of which party wishes to end the lease.