Property Management Laws and Regulations In North Dakota

Property managers in North Dakota follow state laws that set out rules for leasing, maintenance, and tenant relations. Agencies in the state oversee compliance and local rules in some cities may also affect day-to-day operations.

Which State Agencies Enforce Property Laws?

In North Dakota, property management laws are primarily enforced by the North Dakota Real Estate Commission. This agency issues licenses and oversees the conduct of real estate professionals, including property managers.

The North Dakota Attorney General’s office also plays a key role, particularly in handling consumer complaints under landlord-tenant law. It provides guidance for legal processes such as evictions and tenant rights.

For building and safety codes, local building departments and the North Dakota Department of Health may also be involved. Each agency handles specific responsibilities, making it important for property managers to know which agency to contact for questions or enforcement actions.

What Are Key Legal Requirements For Managers?

State law requires property managers to have a real estate license if they handle leasing or rent collection on behalf of others. This means a property manager must be at least 18 and complete commission-approved education, such as the 45 hours required for the salesperson license.

Property managers must make sure properties meet state and local building codes and respond quickly to repair requests. Managers are also responsible for respecting tenant privacy, issuing written eviction notices, and following required procedures if disputes occur. North Dakota landlords and managers must use proper forms and follow North Dakota landlord tenant laws.

Fines or loss of license can result from breaking state rules or failing to ensure safe, lawful housing. Regular updates and ongoing training help property managers stay compliant as laws change.

Are Local Ordinances Different By City?

While North Dakota has statewide landlord-tenant laws, city ordinances can add more rules property managers must follow. These rules may address rental licensing, inspection programs, and additional tenant protections not covered under state law.

In some cities, local building codes or property maintenance laws can be stricter than state requirements. Municipalities may also establish unique move-in, security deposit, or trash removal rules that all property managers need to apply.

It’s vital for property managers to check local requirements with the city government or review helpful resources like property management laws and regulations in North Dakota to avoid missing important city-specific duties. Staying updated on both state and city rules prevents legal trouble and costly violations.

Licensing Requirements For Property Managers

Property managers in North Dakota must meet specific legal requirements before managing rental properties for others. These rules include licensing, education, and following state regulations overseen by government agencies.

Who Needs A Property Management License In North Dakota?

In North Dakota, a real estate broker's license is required for most property management activities. Anyone who collects rent, negotiates leases, or lists rental properties for others must hold this license.

There are some exceptions: community association managers and condo association managers do not need a broker’s license according to current law. However, if a property manager is dealing with leasing or rental listings for a fee, a license is necessary. For more about these rules, see the property management laws and regulations in North Dakota.

The North Dakota Real Estate Commission is responsible for enforcing these laws. Property managers must also make sure their business entities are properly registered with the North Dakota Secretary of State. Nonprofit corporations that manage property should follow the North Dakota Nonprofit Corporations Act and keep updated articles of incorporation and bylaws.

What Are The Steps To Obtain A License?

Getting a real estate license in North Dakota starts with completing 90 hours of pre-licensing education from an approved school. This coursework covers state laws, leasing, ethics, and property management basics.

After the education requirement is complete, candidates must pass the North Dakota real estate licensing exam. Background checks and fingerprinting are part of the application process. The application and all supporting documents are submitted to the North Dakota Real Estate Commission.

Applicants must also provide proof of legal business registration if managing property as a company. This means filing articles of incorporation with the Secretary of State if the business is a corporation or following nonprofit requirements for nonprofit corporations. Check the commission's site for the most current license law and rules.

Which Continuing Education Is Required?

Property managers with a real estate broker’s license must meet continuing education requirements to keep their license active. North Dakota currently requires 9 hours of approved continuing education every year.

Courses must be taken from approved education providers and cover updates on leasing laws, fair housing, ethics, and rule changes from the North Dakota Real Estate Commission. Documentation of completed hours must be submitted with each license renewal.

Failing to meet these education standards may lead to license suspension. Both individuals and business entities must stay compliant with education and reporting to maintain their legal ability to operate under state law. For state-specific requirements, refer to property management requirements, real estate license.

Rental Agreements And Lease Terms

Property managers must address specific lease requirements, lease renewal processes, and the legality of verbal agreements in North Dakota. Each area directly impacts tenant rights, property conditions, and leasing activities for rental properties.

What Clauses Must Be In North Dakota Leases?

Leases in North Dakota should clearly state the monthly rent amount, due date, and any late fee details. North Dakota law requires late fees to be specified in the lease, including the amount and when they are charged. For security deposits, the lease must set out the maximum allowed, which is generally one month's rent except in special cases.

Lease agreements should also outline the terms for lease termination. For example, for a month-to-month rental, landlords must provide written notice of at least 30 days before raising rent, and tenants may respond with a 25-day notice to end the lease at month-end.

Managers should ensure every lease covers rules around repairs, property maintenance, and access—this protects both parties and clarifies expectations. Including these clauses helps avoid disputes and meets lease compliance as outlined by the North Dakota Attorney General.

How Does The Law Handle Lease Renewals?

Lease renewals typically depend on whether an agreement is fixed-term or month-to-month. Fixed-term leases end on the date specified, and tenants or property managers must sign a new lease for continued occupancy. Month-to-month leases automatically continue unless either party gives written notice to terminate under the state's 30-day policy.

When increasing rent on month-to-month leases, property managers must issue written notice of the new amount at least 30 days in advance. Tenants can then give 25 days’ notice if they do not accept the increase. This procedure provides stability for both managers and tenants, reducing potential disputes over lease terms or rental increases.

Make sure to review the exact language in the property management laws and regulations for North Dakota before making lease changes, as rules can vary slightly by municipality.

Are Verbal Leases Legally Binding?

Verbal leases are legally valid in North Dakota for agreements shorter than one year. However, it is highly recommended for property managers to use written leases for all rental arrangements. Written leases provide physical documentation of agreement terms, including rent, duration, and conditions for maintenance or repairs.

If a dispute arises, written leases are far easier to enforce and prove in court compared to verbal agreements. While verbal leases create legal obligations, lacking clear documentation puts managers at higher risk of misunderstandings and legal challenges, especially around tenant rights and property conditions.

For any rental period of one year or more, state law requires a written contract. Always confirm rental periods and terms in writing for protection and record-keeping.

Security Deposits Regulations

Security deposit rules in North Dakota are strict. The maximum amount, allowed deductions, and time limits for returning deposits are defined in state law.

What Is The Maximum Security Deposit Allowed?

North Dakota law caps the standard security deposit a landlord can collect at the equivalent of one month’s rent. This does not include pet deposits or additional amounts for tenants with criminal convictions.

If a tenant has a pet, the landlord may require an extra security deposit. The total deposit, including the pet portion, cannot be more than $2,500 or two months’ rent, whichever is greater. For tenants with a felony conviction, the landlord can require up to two months’ rent as the security deposit.

Property managers should include all deposit amounts and conditions clearly in the lease agreement or declaration of covenants. More details on these limits can be found on the tenant rights page from the North Dakota Attorney General.

How Soon Must Security Deposits Be Returned?

State law requires that all security deposits must be returned within 30 days after the end of the tenancy and the tenant has vacated the unit. The clock starts as soon as the rental agreement ends and the property is returned to the landlord.

If there are any deductions made for damages or unpaid rent, property managers must provide a written itemized list. The written notice must explain each deduction clearly and be mailed to the last known address of the tenant.

Deposits are not required to be stored in an interest-bearing account. However, keeping detailed records, such as move-in and move-out checklists, helps ensure compliance and avoids disputes. For a full explanation of the requirements, visit North Dakota security deposit laws 2025.

What Deductions Are Permitted By Law?

Landlords can deduct from the security deposit only for specific reasons. Permitted deductions include unpaid rent, damages that go beyond ordinary wear and tear, and cleaning to return the unit to its original condition.

Normal wear and tear cannot be deducted—only actual damage must be documented, ideally with photos and inspection reports. Fees not mentioned in the rental agreement or declaration of covenants are usually not allowed.

If the total deductions do not use up the full deposit, the remaining balance must be returned to the tenant within 30 days. All deductions should be clearly listed in writing and supported by receipts or invoices when possible, as required by North Dakota landlord tenant law.

Eviction Procedures In North Dakota

Evictions in North Dakota follow a strict legal process, with specific requirements for notices, grounds, and timelines. Property managers must meet these standards to protect both landlord rights and North Dakota tenant rights.

When Can A Tenant Be Legally Evicted?

A tenant may be evicted if there is a valid reason. Common legal grounds include non-payment of rent, a lease violation (such as property damage or unauthorized occupants), or staying in the property after the lease term ends.

Landlords must have probable cause before starting any eviction. Retaliation or discrimination is not allowed. Property managers should document all lease violations and non-payments to support any claims made in court.

Tenants are protected from being forced out without a court order. North Dakota law states that landlords cannot take self-help actions like changing locks or removing a tenant’s property. If unsure, review the most up-to-date North Dakota eviction laws and process.

Which Notices Are Required Before Eviction?

Before going to court, landlords must give tenants a written eviction notice. The standard notice is a “notice to quit,” often giving three days to move out. This three-day notice is required by state law and must be delivered directly to the tenant or posted on the property.

If the tenant does not move out after receiving the notice, the landlord may then file a Summons and Complaint with the state district court. This next step officially starts the legal eviction action.

Strict delivery of proper notices is crucial. Failure to provide correct notice may result in a dismissal of the eviction case. For additional guidance, property managers can find step-by-step information on eviction for tenants - North Dakota Court System.

How Long Does The Eviction Process Take?

After serving the initial notice to quit, the legal process can move quickly. If the tenant does not leave within three days, court documents are served. The court hearing is usually scheduled between three and fifteen days after the Summons and Complaint are issued.

Once the court issues an order, tenants are typically required to vacate the property immediately or within a few days, depending on the judge’s ruling. Delays may occur if the tenant challenges the eviction or requests a stay.

In most cases, evictions in North Dakota can be completed in under a month. However, every case depends on court availability, how quickly notices are delivered, and whether tenants exercise their rights under North Dakota tenant laws.

Fair Housing And Anti-Discrimination Rules

Property managers in North Dakota must comply with federal and state laws that make it illegal to discriminate against tenants or prospective tenants. These laws require property managers to treat all applicants and residents equally, use fair criteria, and respond properly to discrimination complaints.

Which Groups Are Protected Under State Law?

North Dakota law protects individuals from housing discrimination based on:

• Race
• Color
• Religion
• Sex
• Disability
• Age
• Familial Status
• National Origin
• Status with respect to public assistance

All property managers are required by the North Dakota Fair Housing Regulations to avoid refusing to rent, negotiate, or sell housing to any person based on these protected categories. For example, it is illegal to deny housing to a person because of their disability or family size. This also means advertising must not express a preference for or against any protected group.

Reasonable accommodations for people with disabilities are mandatory under the Americans with Disabilities Act and should be provided if requested, unless doing so causes undue hardship to the property owner.

How Should Complaints Be Handled Legally?

When a complaint about discrimination is made, property managers need to follow a clear process. Keep detailed documentation of all tenant communications and records that show equal treatment.

Upon receiving a complaint, respond in writing and explain the steps being taken. North Dakota’s Department of Labor and Human Rights handles housing discrimination investigations. Complaints must be filed within one year of the alleged incident. Property managers should cooperate with all investigations and avoid retaliating against anyone who files or assists with a complaint.

A helpful step-by-step process is:

1. Document the complaint with details and date.
2. Respond to the complaining party in writing.
3. Notify your legal team or management.
4. Gather and preserve all related documents.
5. Cooperate fully with agencies investigating the claim.

Additional details on the complaint process can be found in housing discrimination laws in North Dakota.

Are There Additional Federal Guidelines To Follow?

The federal Fair Housing Act applies to most housing in North Dakota. It is illegal to deny housing or treat tenants differently because they are in a protected class. The Fair Housing Act works alongside state rules and sometimes has broader requirements.

The Americans with Disabilities Act requires that property managers make reasonable accommodations and modifications for tenants with disabilities. This means allowing guide dogs, installing ramps, or adjusting policies if needed.

Federal laws also prohibit retaliation against people for asserting their rights. Regular training and updated company policies help ensure that property managers do not unintentionally violate fair housing laws.

Read more about the specific Fair Housing Act in North Dakota.

Maintenance And Safety Obligations

Property managers must follow strict responsibilities for property upkeep, emergency response, and record keeping in North Dakota. These laws protect tenants and reduce costly disputes for owners or condominium associations.

What Maintenance Must Be Provided By Law?

Landlords must keep rental properties safe and habitable under North Dakota laws. This requires attention to critical repairs, including fixing leaky roofs, broken plumbing, and damaged heating or cooling systems. Every unit needs to meet building codes and basic health and safety standards at all times.

Governing documents for condominium ownership may lay out additional standards beyond state law. Property managers should review condominium association rules in addition to local regulations. Owners are required to fix issues reported by tenants within a reasonable period.

For further details on these responsibilities, see the explanation of property management laws and regulations in North Dakota at steadily.com/blog/property-management-laws-regulations-north-dakota.

How Does The Law Address Emergency Repairs?

In an emergency, such as a fire, burst pipe, or loss of heat in winter, property managers must act immediately. North Dakota rules allow tenants to request urgent repairs and may permit them to arrange repairs if the landlord fails to respond. Renters may sometimes deduct repair costs from future rent, but only if state standards are met.

A clear emergency protocol should be shared with tenants. This includes 24-hour contact information and step-by-step procedures for reporting hazardous conditions. Property managers should set a fast response window—typically within 24 hours for issues that threaten safety or health.

Learn more about what North Dakota requires regarding "tenant rights" for repair requests at attorneygeneral.nd.gov/consumer-resources/tenant-rights.

What Records Should Be Kept For Compliance?

Property managers must keep detailed records for every maintenance and safety action performed. This includes:

• Work orders for repairs
• Invoices and receipts from contractors
• Inspection checklists
• Communication logs with tenants

Accurate documentation is essential if a dispute arises or if a local building inspector conducts an audit. For condominium properties, managers must keep both individual unit and common area repair records to meet both state law and association bylaws.

Staying organized with maintenance records supports compliance and helps quickly resolve tenant claims regarding North Dakota property management laws at allpropertymanagement.com/resources/property-management-laws/north-dakota.

Handling Tenant Disputes Legally

Property managers in North Dakota deal with tenant conflicts that require careful action under state law. Addressing complaints quickly and using the right dispute resolution methods can reduce risk and support both tenants’ and owners’ interests.

What Is The Best Approach To Tenant Complaints?

The most effective way to handle tenant complaints is to use a clear and documented process from start to finish.

First, property managers should keep written records of all complaints. This protects against future legal issues and supports property management laws and regulations in North Dakota.

All tenants, including those in homeowners associations (HOAs), must have access to well-maintained common elements. If a complaint involves repairs, managers should act fast and provide regular updates to the tenant.

For issues involving debt collection, managers need to follow the Fair Debt Collection Practices Act to avoid penalties. This includes sending required notices before any collection activity begins.

If the problem is between tenants, suggest solutions that respect everyone's legal rights. In HOAs, managers need to pay special attention to governing documents like the plat or resolutions to check if the issue falls under community rules.

Which Mediation Resources Are Available?

When direct communication fails, property managers can use dispute resolution services to help settle conflicts.

The North Dakota Attorney General’s Office lists local mediation programs and legal help for landlord-tenant problems. For smaller cases, Small Claims Court forms are available through the ND Supreme Court.

HOAs often have their own rules for complaint mediation. Review the HOA law and bylaws for the correct steps. Some counties also offer free or low-cost dispute resolution services for residents.

In certain situations, managers may refer parties to Legal Services of North Dakota or hire a private mediator. Always keep detailed documentation of each step to meet legal requirements and protect homeowner rights during dispute resolution.

Frequently Asked Questions

Property managers in North Dakota must pay close attention to state laws about leasing, tenant rights, deposits, licensing, and fair housing issues. Legal compliance is necessary to manage rentals and avoid penalties for property management companies.

What are the legal requirements for establishing a property management company in North Dakota?

A property management company must register as a legal business with the North Dakota Secretary of State. Businesses must select a name, file the appropriate paperwork, and pay all state fees. It’s also important to draft contracts that comply with state rental and property laws.

How does North Dakota law define the responsibilities of a property manager?

Property managers are responsible for keeping rental units safe and habitable. They must complete repairs, handle rent collection, and enforce lease agreements. Property managers also serve as the main contact for tenants.

What are the North Dakota regulations regarding security deposits and rent control?

North Dakota law limits security deposits to one month’s rent, except if a pet is allowed, which may permit an additional deposit. The state does not impose rent control, allowing landlords and property managers to set rents as they choose. Details are available in the North Dakota landlord tenant law.

Under North Dakota law, what is the eviction process for tenants managed by a property management service?

Evictions require proper notice, usually three days for non-payment of rent. If the issue is not resolved, the property management company must file for eviction in court. The process must follow all state rules to ensure legality.

What compliance obligations do property managers have concerning fair housing and anti-discrimination laws in North Dakota?

Property managers cannot discriminate against tenants or applicants based on race, color, national origin, sex, religion, disability, or familial status. All advertising, tenant screening, and lease practices must align with federal and state fair housing laws. Further information can be found on state regulatory sites like property management laws and regulations in North Dakota.

What are the specific licensing requirements for property managers operating in North Dakota?

Anyone managing property for others must have a valid North Dakota real estate license unless the manager only handles properties they own. Unlicensed property management is not permitted except for direct owners. The requirements include pre-licensing education, a state exam, and background checks.