North Dakota Tenant Screening Laws: What Landlords Can and Cannot Do
North Dakota caps the deposit at one month, pays interest after nine months, and penalizes unjustified withholding with treble damages, but does not cap screening fees. Here is how to screen legally in 2026.
Tenant screening in North Dakota is governed lightly by state statute and heavily by federal law. North Dakota Century Code 47-16-07.1 sets the deposit limit, the interest rule, and a treble-damages penalty, but it says little about how you evaluate an applicant – which makes the federal Fair Credit Reporting Act and fair housing law the real rulebook.
This guide covers what you may screen, what you can charge, and the deposit rules under NDCC 47-16-07.1. If you are new to the mechanics, our overview of how to screen tenants step by step pairs well with the North Dakota-specific points below.
Video: a plain-language walkthrough of North Dakota tenant screening, application fees, deposits, and adverse action.
Key Takeaways: North Dakota Tenant Screening Laws
- No application-fee cap. North Dakota does not limit screening fees, but they must be reasonable and tied to the actual cost of the report.
- Deposits are capped at one month’s rent for an unfurnished unit, with a higher pet ceiling of the greater of two thousand five hundred dollars or two months’ rent.
- Interest is owed after nine months. A deposit held for an occupancy of at least nine months earns the tenant interest.
- Unjustified withholding is costly. A landlord who withholds without reasonable justification can owe treble damages.
What North Dakota Law Lets You Screen
North Dakota gives landlords broad authority to evaluate an applicant. With written permission you may obtain a consumer report covering credit, rental and payment history, employment and income, and public records such as criminal convictions and civil judgments, and you may decline applicants who fail your written standards.
Because North Dakota regulates so little of the screening process, consistency is the safeguard: write your criteria down and apply them identically to every applicant. Our guide to the minimum credit score for renting explains how to set a threshold that screens for risk without screening out a protected class.
Application Fees in North Dakota: No Cap
North Dakota sets no maximum on a tenant application or screening fee. The practical limits are reasonableness and consistency: tie the fee to the actual cost of the report and charge the same amount to every applicant.
Uneven fees, or fees collected without genuine screening, draw fair housing scrutiny even where no cap exists. Treat the fee as part of a documented, even-handed process.
The deposit carries a treble-damages risk
North Dakota leaves the fee to you, but NDCC 47-16-07.1 caps the deposit, requires interest after nine months, and lets a tenant recover treble damages when the landlord withholds without reasonable justification.
Security Deposits Under NDCC 47-16-07.1
North Dakota caps the security deposit at one month’s rent for an unfurnished unit. If the tenant has a pet, the landlord may collect more – up to the greater of two thousand five hundred dollars or two months’ rent – to cover the added risk. A deposit held for an occupancy of at least nine months also earns the tenant interest.
After the tenant relinquishes control of the unit, the landlord has thirty days to return the deposit with an itemized statement of any deductions, mailed to the tenant’s last known address. A landlord who withholds without reasonable justification is liable for treble damages. Our deeper look at North Dakota security deposit laws covers permitted deductions and the interest rule.
North Dakota Fair Housing and Protected Classes
North Dakota fair housing law tracks the federal Fair Housing Act, prohibiting discrimination on the basis of race, color, religion, sex, national origin, familial status, and disability, with HUD interpreting sex to include sexual orientation and gender identity in housing, and North Dakota adds status with respect to public assistance and a few other classes. North Dakota does not broadly add source of income beyond that.
Uniform treatment of every applicant remains the rule. For the federal baseline, see our Fair Housing Act guide for landlords.
Criminal History, Credit, and Eviction Records
A criminal record can be a lawful basis to decline in North Dakota, but a blanket no-record policy is the most common fair housing trap. HUD’s 2016 guidance treats criminal-records screening under a disparate-impact lens, so a flat ban can violate the federal Fair Housing Act even without intent. Use an individualized assessment tied to the offense, how recent it is, and safety.
Credit history and prior evictions are cleaner when your standard is objective and consistently applied. You can read how eviction filings arise on our North Dakota eviction notice laws page. Decide your criteria in advance and apply them the same way every time.
The FCRA: Consent and Adverse Action
When you pull a screening report through a consumer reporting agency, the federal Fair Credit Reporting Act governs the transaction – and in North Dakota, where state law is largely silent on screening, this is the rule that matters most. You need a permissible purpose and written authorization before ordering the report, and you must send an adverse action notice if the report drives a denial, a higher deposit, or a co-signer demand.
The notice must name the reporting agency, state that it did not make the decision, and explain the applicant’s right to a free copy and to dispute it. Our FCRA compliance guide and the companion walkthrough of the adverse action notice spell out the requirements.
Fair Housing Compliance for North Dakota Landlords
North Dakota fair housing law and the federal Act demand the same discipline: uniform criteria, uniform application, and documentation showing you treated every applicant by the same yardstick. In a state that regulates the process this lightly, the paper trail is your protection.
Publish your criteria before you advertise, screen every applicant against the identical standard, and keep the file. Consistency is far more persuasive than an after-the-fact explanation.
A Compliant North Dakota Screening Process
Turn the rules into one repeatable sequence. First, publish objective criteria. Second, collect a reasonable, uniform screening fee. Third, get written consent and order the report. Fourth, evaluate every applicant against the identical standard. Fifth, if you decline based on a report, send the adverse action notice promptly – and keep the deposit within the cap, pay interest after nine months, and itemize the thirty-day return.
Income verification is the step landlords most often shortcut; our guide to verifying tenant income shows how to confirm ability to pay without singling anyone out. Run the same steps for every applicant and your file will tell a clean, consistent story.
Pet Deposits, Interest, and Treble Damages in North Dakota
North Dakota’s deposit statute has three features worth building into your process. The pet exception lets you collect more than one month – up to the greater of two thousand five hundred dollars or two months’ rent – when a tenant has a pet, to offset the added risk, while a service or assistance animal is not a pet and cannot trigger the higher deposit.
The interest rule applies once an occupancy reaches at least nine months, so a deposit held that long earns the tenant interest you must account for. And the treble-damages penalty is the sharpest edge: withholding a deposit without reasonable justification exposes you to three times the amount, which makes a documented, itemized return essential.
Common Mistakes That Create Liability
In a permissive state the recurring errors cluster around the deposit. Exceeding the one-month cap without a pet, charging the higher pet deposit for a service animal, skipping interest after nine months, or missing the thirty-day itemized return can trigger treble damages. Charging uneven application fees and denying an applicant on a report without the FCRA notice round out the list.
One standard, every applicant. North Dakota hands you the freedom to design your own process but backs its deposit rules with treble damages. A single written rubric, used the same way each time, is your strongest defense.
Documentation and Recordkeeping in North Dakota
Because North Dakota backs its deposit rules with treble damages, your records are what protect you. Keep the signed authorization for each consumer report, a dated copy of the written criteria you applied, the screening results, and every adverse action notice. A complete file showing identical treatment across applicants is the strongest answer to a fair housing complaint.
On the deposit, document the base deposit against the one-month cap, any pet deposit and its justification, the interest calculation when the occupancy reaches nine months, the itemized statement mailed within thirty days, and dated condition records that justify every deduction.
Set one retention policy and apply it to every file, approved or denied. A consistent multi-year record of authorizations, criteria, screening results, adverse action notices, and deposit accountings gives you the evidence to answer a discrimination inquiry or a treble-damages deposit claim. Keeping the same records for everyone is itself proof of the even-handed treatment North Dakota and federal law require.
Do
- ✓Publish your written screening criteria before you advertise, and apply them to every applicant.
- ✓Get written authorization before pulling any report, and keep the signed consent on file.
- ✓Send an FCRA adverse action notice on every denial that rests on a consumer report.
- ✓Assess any criminal record case by case, weighing the offense, how recent it is, and safety.
- ✓Handle the security deposit and its return exactly as the state statute requires, and document it.
Avoid
- ✕Charge uneven application fees, or collect a fee with no genuine screening behind it.
- ✕Treat a permissive state as a lawless one – the FCRA and federal fair housing law always apply.
- ✕Apply a blanket ban on any criminal record, which risks a disparate-impact violation.
- ✕Improvise your standards applicant by applicant instead of following one written rubric.
- ✕Skip the deposit paperwork the statute requires, from itemization to any required notices.
North Dakota Tenant Screening Laws: FAQ
Can a North Dakota landlord run a background check on an applicant?
Yes. With written authorization you may obtain a consumer report covering credit, rental history, income, and criminal convictions. The federal Fair Credit Reporting Act requires a permissible purpose and consent before any screening report is pulled.
Is there a limit on application fees in North Dakota?
No. North Dakota does not cap tenant application or screening fees. Keep the fee reasonable, tie it to the actual cost of screening, and charge it consistently to every applicant.
What is the maximum security deposit in North Dakota?
One month’s rent for an unfurnished unit under NDCC 47-16-07.1. If the tenant has a pet, the deposit may be the greater of two thousand five hundred dollars or two months’ rent.
When must a North Dakota landlord return the deposit?
Within thirty days after the tenant relinquishes control of the unit, with an itemized statement of deductions mailed to the last known address. Unjustified withholding exposes the landlord to treble damages.
Does North Dakota require interest on security deposits?
Yes, when the tenant’s occupancy is at least nine months. A deposit held that long earns the tenant interest the landlord must account for.
Is source of income a protected class in North Dakota?
North Dakota protects status with respect to public assistance among its fair housing classes, but does not broadly protect source of income. Treat every applicant by the same standard and confirm the current protected classes.
Can a North Dakota landlord deny an applicant for a criminal record?
A conviction can be a lawful reason to decline, but blanket bans are risky. HUD’s 2016 guidance warns that a flat no-record policy can create a disparate-impact violation, so use an individualized assessment tied to the offense, how recent it is, and safety.
Does a North Dakota landlord have to send an adverse action notice?
Yes. If a denial, a higher deposit, or a co-signer requirement rests in any part on a consumer report, the FCRA requires an adverse action notice naming the reporting agency and explaining the right to a free report and to dispute it.
How long should a North Dakota landlord keep tenant screening records?
Keep applications, signed authorizations, screening results, adverse action notices, and deposit accountings for every applicant – approved or denied – for several years. In North Dakota, a consistent retention policy is the evidence that you treated every applicant by the same standard if a fair housing or deposit dispute later arises.
When must a North Dakota landlord send the adverse action notice?
Send it promptly whenever a consumer report contributes to an adverse decision – a denial, a higher deposit, or a co-signer requirement. The FCRA notice must name the reporting agency, state that it did not make the decision, and tell the North Dakota applicant how to get a free copy of the report and dispute any error.
Related North Dakota and Screening Guides
- Tenant screening laws by state – compare North Dakota to the rest of the country.
- North Dakota security deposit laws – deductions, itemization, and the return deadline.
- North Dakota eviction notice laws – notice periods and the eviction timeline.
- North Dakota rent increase laws – notice rules for raising the rent.
- North Dakota late fee laws – what you can charge for late rent.
- How a tenant background check works – what a report includes.
- North Dakota habitability laws – your maintenance obligations as a landlord.
Screen North Dakota Applicants the Compliant Way
Order FCRA-ready credit, criminal, and eviction reports and keep your North Dakota process consistent from application to decision.
Published by Tenant Screening Background Check · Editorial Team
Established 2004. Our editorial team has spent two decades helping landlords and property managers run lawful, FCRA-compliant tenant screening across all 50 states. We translate state landlord-tenant codes and federal screening rules into processes you can actually follow.
Legal Disclaimer
This article is for general informational purposes only and is not legal advice. North Dakota and federal laws change, and how they apply depends on your specific facts. Before acting on any screening, fee, deposit, or fair housing question, consult a licensed attorney in North Dakota. Reading this page does not create an attorney-client relationship.
