INTRODUCTION

The purpose of the booklet is to provide landlords and tenants with information about their responsibilities and legal rights in North Dakota.

This publication will include a general overview of North Dakota Landlord/Tenant law and other information on renting. This booklet is NOT intended to be a substitute for professional legal advice. Because factual circumstances vary in each case, detailed legal research or opinions may be necessary to resolve any problems.

It is important to remember as you read this booklet that many of the law's provisions may be changed by agreement between landlord and tenant. That is why it is always a good practice to have a written lease and to be familiar with its provisions before signing it.

INSPECTION OF UNIT BEFORE LEASING

Prospective tenants should visit the rental unit before they give the landlord any money. They should be allowed to inspect the rental unit (appliances, plumbing, light fixtures, carpeting, locks, linoleum, windows, etc.)

According to N.D.C.C. (ND Century Code) 47-16-07.2, a landlord shall provide the tenant with a statement (check-in sheet) describing the condition of the facilities in and about the premises to be rented at the time of entering into a lease agreement. The statement shall be agreed to and signed by both the landlord and the tenant. The statement shall provide proof as to the condition of the facilities and the premises at the beginning of the rental agreement. Make sure all the conditions are correctly stated on the check-in sheet. An accurate statement at the time the tenant moves in, will lessen the chance of misunderstanding and future disagreements.

SECURITY DEPOSITS

Landlords have the right to require tenants to make a security deposit (damage deposit). This money is paid by the tenant and held by the landlord. The security deposit cannot exceed the amount of one month's rent and will be used to guarantee against unpaid rent, damage or cleaning costs. Moreover, if the tenant owns a pet, the landlord may require a "pet deposit" not to exceed $2,500 to cover any pet related damage. This amount includes the regular deposit.

The landlord is obligated to deposit the money in a federally insured interest-bearing savings or passbook account. The landlord may apply the security deposit money and accrued interest upon termination of the lease toward any damages suffered through the negligence of the tenant or his/her guest, any unpaid rent, or the costs of cleaning and repairs which were the tenant's responsibility. The pet deposit money should only be utilized to correct problems created or caused by the pet living on the premises. If the deposit is $100, but the tenant causes $300 dollars in damages, the landlord can sue for the difference. The deposit may not be used by the tenant to pay rent without the landlord's consent.

Landlords can also require prospective tenants to pay an application fee (which may be non-refundable). The fee is customarily used to cover the cost of checking a tenant's references (past landlords, employment, credit bureau, etc.) tenants should ask if such fees are refundable and can request a receipt for payment. These fees should not be mistaken for security deposits.

LEASES

When a landlord agrees to rent a house, apartment, room, or other living quarters to a tenant for a specific monthly rent, the two have entered into a legally binding rental agreement. The agreement can be verbal or written. It is an agreement to rent, and that means there are certain terms and rights defined by law.

It is strongly recommended and important to keep a file that includes copies of all lease agreements, notices, letters and other correspondence between tenant and landlord. These records will be necessary should a dispute arise later.

The word lease refers to the agreement between a landlord and tenant, whether it is verbal or written. There are two basic types of leases-"periodic leases" and "term leases".

Periodic Lease: If the lease has no specific ending date, it is a periodic lease. Generally these leases are month-to-month. A periodic lease is automatically renewed each time the tenant pays rent to the landlord.

Term Lease: If the lease states how long the tenancy will last (i.e., six months or a year), it is a term lease. These leases are usually written. The tenant is generally liable for rent the entire term on the lease.

a lease is a legally binding contract which cannot be broken without the other person's consent. The best arrangement between a landlord and tenant is a written lease. As written lease outlines the conditions under which a person(s) may live in a rental unit, and can be referred to if a dispute arises. When entering into a lease agreement all verbal promises (repairs, number of parking spots, etc.) should be put in writing.

Landlords and tenants can negotiate the terms of the lease provided both parties agree to the changes. If the written lease form is changed, both landlord and tenant should mark their initials next to any changes, additions, or deletions made on the lease forms.

Before you sign a lease, you should carefully read and understand the terms, especially any requirements for terminating the lease. If you have any questions, ask for an explanation. Most landlords are glad to help clarify points to avoid future misunderstandings. In addition, both parties should receive a copy of the lease and any other signed forms.

Next page