North Dakota has many rules and statutes regulating its housing market. These must be fully considered when preparing an application for rental properties in the state.
Application Fee
You can charge as much as you wish as a rental application fee. There are no laws in North Dakota providing a set limit, although it is recommended to only charge enough to cover the costs of any background checks. Any amount charged to the tenant is also non-refundable.
Security Deposit
Landlords cannot charge more than 1 months’ rent if they are leasing an apartment under North Dakota law. However, landlords can charge up to 2 months’ rent or $2,500 (whichever is less) if the applicant has pets (§ 47-16-07.1).
Housing Discrimination Law
In North Dakota, there is no specific state law relating to housing discrimination. However, the Fair Housing Act (FHA) is in place. The FHA states that it is illegal to discriminate based on the following characteristics:
- Race
- Nationality
- Religion
- Sex
- Familial status
- Disability
- Criminal history
As a consequence, you are not allowed to ask for any of these details on an ND Rental Application form, nor to include them in the decision-making process. However, in North Dakota, certain exemptions from fair housing laws exist. These are as follows:
- Sex/sexual orientation: laws relating to discrimination against sex or sexual orientation do not apply to single-family residences where the owner is an occupant and will share a common area with the tenants.
- Housing for older persons: it is allowed to ask for an applicant’s age for age-restricted communities (such as senior housing).
- Familial status: landlords may ask whether children will occupy the premises for two-family owner-occupied buildings.
- Private clubs: clubs that do not operate publicly and do not rent for commercial purposes can give preference to certain applicants.
- Religious organizations: religion can be used as a basis for giving priority to certain applicants for properties that are owned or managed by a religious organization that does not rent with commercial intent.
- Mrs. Murphy exemption: dwellings with four units or fewer, in which one unit is occupied by the owner, and where the landlord is not represented by a real estate agent, are exempt from fair housing requirements.
Notice of Eligibility
You must disclose the screening criteria used during the application process, as well as anything that could lead to a refusal. To make sure individuals understand this in advance of the application, they must provide a signature of acknowledgment on the application.
Consent Credit Check
The Federal Credit Reporting Act (FCRA) stipulates that potential tenants must agree to any credit checks you require. To show they consent, they must provide written acknowledgment on the application form.