North Dakota Last Month's Rent Rules

Can landlords collect last month's rent upfront in North Dakota? How is it different from a security deposit? Learn the rules under N.D. Cent. Code §47-16-07.1 and what happens to it when you move out.

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Last Month's Rent vs. Security Deposit in North Dakota

Last month's rent (LMR) and a security deposit are legally distinct in North Dakota — even when both are collected upfront at signing. Under N.D. Cent. Code §47-16-07.1, a security deposit covers damage and unpaid non-rent obligations. Last month's rent is prepaid rent, applied to your final month. Misapplying one as the other can create legal complications, and some states impose separate rules (including interest requirements) on last month's rent.

Last Month's Rent Is Not a Deposit

Some states (like Massachusetts) require landlords to pay interest on last month's rent. Keep a record of exactly what you paid and how it was labeled in your lease.

What to Do About Last Month's Rent in North Dakota

  1. 1

    Check your lease: is last month's rent labeled separately from the security deposit?

  2. 2

    Get a written receipt showing exactly how each amount was applied

  3. 3

    Notify your landlord in writing when you intend to apply LMR to your final month

  4. 4

    Do not assume LMR covers your last month without written confirmation

  5. 5

    If landlord misapplies your LMR, dispute it citing N.D. Cent. Code §47-16-07.1

Legal Reference

Wear & Tear Protected
Primary StatuteN.D. Cent. Code §47-16-07.1
Penalty StatuteN.D. Cent. Code §47-16-07.1
Small Claims Limit$15,000
Statute of Limitations6 years

Questions

Common questions answered.

Your North Dakota landlord has 30 days after your move-out date to return your security deposit along with an itemized statement of any deductions. This deadline is set by N.D. Cent. Code §47-16-07.1.

If your landlord misses the 30-day deadline, you may be entitled to up to 2× the amount wrongfully withheld under N.D. Cent. Code §47-16-07.1. This penalty applies automatically. You don't need to prove intent.

No. North Dakota law under N.D. Cent. Code §47-16-07.1 explicitly prohibits landlords from deducting for normal wear and tear. This includes faded paint, minor scuffs, small nail holes, and carpet thinning from regular use. Deductions must be for actual damage beyond what normal living causes.

No. In North Dakota, last month's rent and a security deposit are legally distinct - even if both are collected at lease signing. A security deposit under N.D. Cent. Code §47-16-07.1 covers damage and unpaid obligations. Last month's rent is prepaid rent applied to your final month. They may be subject to different rules and interest requirements.

Last month's rent should be applied to your final month's rent obligation. It is not a security deposit and generally should not be treated as one. Notify your landlord in writing when you intend to apply it to your last month, and keep written confirmation of how it was applied.

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