Most residential landlords require tenants to pay a security deposit to cover any repairs needed when the tenant moves out, or to cover the tenant’s failure to pay the last month's rent.

Laws vary from state to state, but many states have statutes that provide the maximum amount of security deposit a landlord may require for a residential lease and the costs for which the landlord may use the security deposit (cleaning, repairs, unpaid rent) following termination of the lease.

These laws also provide a specific deadline (often 30-60 days) for the landlord to return the tenant’s security deposit following termination of the lease—after deducting any amount properly withheld, as allowed by law.

In North Dakota, residential landlords can require tenants to pay a security deposit as a safeguard against damages or unpaid rent. State law regulates the maximum amount of this deposit and the conditions for its return. According to North Dakota Century Code Section 47-16-07.1, a landlord may not demand a security deposit that exceeds one month's rent, except in the case of a pet deposit, which may be an additional sum not exceeding $2,500 or two months' rent, whichever is less. Upon termination of the lease, the landlord is required to return the security deposit within 30 days, or within the time specified in the lease (not to exceed 30 days), after the tenant has returned possession of the premises to the landlord. The landlord may use the security deposit to cover unpaid rent, damages beyond normal wear and tear, and other costs as agreed upon in the lease. If deductions are made, the landlord must provide the tenant with an itemized list of damages and the estimated or actual cost of repairs. If the landlord fails to return the deposit or provide the itemized list within the required time frame, the tenant may recover damages in the amount of twice the portion of the deposit wrongfully withheld.