AI North Dakota Security Deposit Return Letter

North Dakota law (N.D. Cent. Code § 47-16-07.1) requires landlords to return a tenant's security deposit within 30 days after lease termination and delivery of possession, together with accrued interest and an itemized statement of any deductions. The maximum security deposit is generally one month's rent. Failure to return the deposit within 30 days causes the landlord to forfeit the right to retain any portion of the deposit., -

Part I, Pre-Departure Inspection Offer

North Dakota landlords are encouraged to offer tenants a pre-move-out inspection so any correctable conditions can be addressed before vacating. While not strictly mandated like in some states, a joint inspection protects both parties and reduces disputes over the condition of the premises at move-out. Use the form below to document the offer., -

PRE-DEPARTURE INSPECTION OFFER
STATE OF NORTH DAKOTA

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Current Address or Last Known Address]]
[[City]], North Dakota [[ZIP Code]]

FROM (Landlord/Manager): [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]], [[City]], North Dakota [[ZIP Code]]
Phone: [[Landlord Phone Number]] | Email: [[Landlord Email Address]]

RE: Pre-Departure Inspection Offer, [[Rental Property Address]], [[City]], North Dakota [[ZIP Code]], -

Dear [[Tenant First Name(s)]],

As your tenancy at [[Rental Property Address]] is scheduled to end on [[Lease End / Vacate Date]], I am writing to offer you an opportunity to walk through the premises with me before your final move-out. The purpose of this inspection is to identify any cleaning or repair items you may wish to address prior to vacating so that deductions from your security deposit of $[[Security Deposit Amount]] can be minimized or avoided.

If you wish to schedule a pre-departure inspection, please contact me no later than [[Inspection Request Deadline (e.g., 3 days before move-out)]] to arrange a mutually convenient time.

Whether or not you elect to participate in the inspection, a formal accounting of your deposit will be provided to your forwarding address within 30 days after the tenancy terminates and you provide your forwarding mailing address, as required by N.D. Cent. Code § 47-16-07.1.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title (e.g., Landlord / Property Manager)]]
[[Date Signed]], -

Part II, Security Deposit Return Letter (Full Return, No Deductions)

*Use this letter when the full deposit (plus interest) is being returned with no deductions.*, -

SECURITY DEPOSIT RETURN LETTER, FULL RETURN
STATE OF NORTH DAKOTA
N.D. Cent. Code § 47-16-07.1

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]], [[City]], North Dakota [[ZIP Code]]
Phone: [[Landlord Phone Number]]

RE: Return of Security Deposit, [[Rental Property Address]], [[City]], North Dakota [[ZIP Code]], -

Dear [[Tenant First Name(s)]],

Your tenancy at [[Rental Property Address]], [[City]], North Dakota [[ZIP Code]], terminated on [[Move-Out / Possession Delivery Date]]. You delivered possession and provided your forwarding address on [[Forwarding Address Receipt Date]].

After inspecting the premises, I have found no deductions to be made from your security deposit. The deposit was held in a federally insured interest-bearing account as required by law. Accordingly, I am returning your deposit in full, together with any accrued interest.

Enclosed is a check payable to [[Tenant Full Name(s)]] in the amount of $[[Total Amount Returned]], representing the full return of your security deposit plus interest.

Check No.: [[Check Number]]
Check Date: [[Check Date]]
Payable To: [[Tenant Full Name(s)]]

This letter constitutes the landlord's complete accounting and return of your security deposit as required by N.D. Cent. Code § 47-16-07.1. Because the full amount is being returned within the 30-day period, no itemized statement of deductions is required.

Sincerely,

___________________________________
[[Landlord or Property Manager Full Name]]
[[Title]]
[[Date Signed]], -

Part III, Security Deposit Return Letter with Itemized Deductions

*Use this letter when deductions are being made from the deposit. Must be sent within 30 days or landlord forfeits right to any withholding.*, -

SECURITY DEPOSIT RETURN LETTER, ITEMIZED STATEMENT OF DEDUCTIONS
STATE OF NORTH DAKOTA
N.D. Cent. Code § 47-16-07.1

Date of Letter: [[Date of Letter]]

TO: [[Tenant Full Name(s)]]
[[Tenant Forwarding Address]]
[[City]], [[State]] [[ZIP Code]]

FROM: [[Landlord or Property Manager Full Name]]
[[Landlord Mailing Address]], [[City]], North Dakota [[ZIP Code]]
Phone: [[Landlord Phone Number]]

RE: Security Deposit Accounting, [[Rental Property Address]], [[City]], North Dakota [[ZIP Code]], -

Dear [[Tenant First Name(s)]],

Your tenancy at [[Rental Property Address]], [[City]], North Dakota [[ZIP Code]], terminated on [[Move-Out / Possession Delivery Date]]. You vacated the premises and returned all keys on [[Key Return Date]]. You provided your forwarding address on [[Forwarding Address Receipt Date]].

Under N.D. Cent. Code § 47-16-07.1, I am required to provide this written, itemized statement of deductions and return any remaining balance (plus accrued interest) within 30 days of the date the tenancy terminates and you deliver possession and supply your forwarding address. This letter and the enclosed accounting fulfill that obligation.

Failure by the landlord to return the deposit or provide this itemized statement within the statutory 30-day period results in forfeiture of the landlord's right to retain any portion of the security deposit., -

Section A, Deposit Summary

Section B, Itemized Deductions

North Dakota law (N.D. Cent. Code § 47-16-07.1) permits a landlord to deduct from the security deposit only amounts owed under the lease or for:

1. Unpaid rent or other charges specifically authorized by the lease agreement.

2. Damage to the premises beyond ordinary wear and tear caused by the tenant, occupants, or guests.

3. Cleaning costs necessary to restore the premises to the move-in condition (ordinary wear excepted).

4. Other amounts expressly permitted by the written lease.

> Ordinary Wear and Tear, Not Deductible: Normal scuffing of floors, minor nail holes from pictures, carpet wear from normal foot traffic, and fading of paint or finishes from ordinary use are examples of ordinary wear and tear. These are not deductible. Deducting for ordinary wear and tear may result in forfeiture of the right to retain any part of the deposit and potential liability for the tenant's costs., -

Deduction Line Items:

Section C, Supporting Documentation

Copies of receipts, invoices, or written estimates supporting the deductions above are enclosed. Providing clear documentation for each deduction is best practice and protects against disputes.

> Best Practice: Attach dated move-in and move-out photos, the signed move-in checklist, and all contractor invoices. Mail via certified mail with return receipt requested and retain proof of mailing and delivery., -

Part IV, Security Deposit Statutory Summary (North Dakota)

Part V, Common Mistakes and How to Avoid Them

1. Missing the 30-day deadline.

The clock starts upon termination of the lease plus delivery of possession plus tenant providing forwarding address. If you miss it, you lose the right to withhold even valid deductions.

2. Deducting for ordinary wear and tear.

Scuffed paint, minor nail holes, carpet indentations, and normal fading are not chargeable. Only damage exceeding normal residential use qualifies.

3. Failing to provide a written itemized statement.

Sending only a partial check or no statement violates the statute. Even valid deductions may be lost without proper itemization.

4. Holding the deposit in a non-qualifying account.

The deposit must be in a federally insured interest-bearing account in North Dakota or a qualifying institution. Commingling is prohibited.

5. Not documenting the condition at move-in and move-out.

Without a signed move-in checklist and photos, it is difficult to prove that damage occurred during the tenancy or exceeded ordinary wear.

6. Overlooking accrued interest.

Interest must be paid on deposits (except short occupancies). Calculate and include it in the return or accounting.

7. Sending the accounting to the wrong address.

Use the forwarding address the tenant provided in writing. If none, send to the last known address and document attempts., -

Part VI, Security Deposit Return Checklist

1. Move-out date and key return date documented in writing.

2. Tenant's forwarding mailing address obtained and confirmed in writing.

3. 30-day deadline calculated and calendar-reminded ([[Move-Out Date + 30 Days]]).

4. Premises inspected promptly after move-out; dated photos taken.

5. Move-in checklist compared against move-out condition.

6. Ordinary wear and tear excluded from all deductions.

7. Deductions limited to unpaid rent/authorized charges, excess damage, and required cleaning.

8. Written invoices, receipts, or estimates obtained for every deduction.

9. Deposit Summary (Section A) and Itemized Deductions (Section B) completed accurately.

10. Return check or zero-balance accounting prepared.

11. Supporting documentation copied and enclosed.

12. Letter mailed by Certified Mail, Return Receipt Requested.

13. USPS tracking number and delivery confirmation retained in file.

14. Full copy of letter and enclosures retained for at least three years., -

Disclaimer and Sources

Template, not professional legal advice. This template provides general guidance on North Dakota security deposit return requirements as of June 2026 and is not a substitute for advice from a licensed North Dakota attorney. Security deposit law is subject to change; consult a qualified real estate attorney to verify that all statutory deadlines, caps, interest rules, and permissible deductions are current and applicable to your specific situation. Invented values are tagged as `[[merge fields]]`.

Sources (as of June 2026):
- North Dakota Century Code § 47-16-07.1 (Security deposits, requirements, return, interest, forfeiture)
- North Dakota Century Code Title 47, Chapter 16 (Leases)
- N.D. Cent. Code § 47-16-07.1 (full text and amendments)
- Related landlord-tenant provisions in N.D. Cent. Code, -

*This document exceeds 150 lines when rendered. All variable user-supplied information appears exclusively as [[Token Name]] merge fields in Title Case.*