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HB 1272

Motor vehicles; modifying types of vehicles requiring certain approach; modifying name of offense; effective date.

2025 Regular Session Introduced by Neil Hays

HB 1272 would require standardized move-in/move-out inspections and tighten security deposit rules (caps, pet deposits, itemized deductions) to boost tenant protections.

Second Reading referred to Rules
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Bill Summary · HB 1272

Summary — HB 1272 (North Dakota): Mandatory move‑in / move‑out inspections; tenant security deposits

Status: Introduced November 13, 2024. Second reading — failed to pass (yeas 41, nays 47).

Main purpose

HB 1272 would (1) require standardized move‑in and move‑out inspections for leased real property and dwellings in North Dakota and (2) revise the statutory rules governing tenant security deposits (NDCC §47‑16‑07.1). The bill aims to increase transparency about property condition at tenancy start and end and to tighten procedural protections for tenants and obligations for lessors.

Key provisions

  • Security deposit custody and limits
    • Deposits must be held in a federally insured, interest‑bearing savings or checking account "for the benefit of the tenant."
    • General cap: a lessor may not demand a deposit in excess of one month’s rent, with exceptions:
    • Up to two months’ rent if the tenant has a felony conviction (as an incentive to rent)
    • Up to two months’ rent if the tenant previously had a judgment for violating a rental agreement
  • Pet deposits
    • Lessors may charge a separate pet security deposit (not for required service/assistance animals).
    • Pet deposit limit: may not exceed the greater of $2,500 or an amount equal to two months’ rent.
  • Permitted uses of deposit on lease termination
    • Deductions allowed for pet‑caused damage, unpaid rent, and tenant‑responsible cleaning/repairs (reasonable wear and tear excepted).
  • Itemization and timing
    • Any portion of the deposit withheld must be itemized and delivered to the tenant; the itemization must include the move‑out inspection estimate and final deductions.
    • If occupancy < 9 months, lessor need not pay interest on the deposit.
  • Mandatory inspections (new section to chapter 47‑16)
    • Move‑in: landlord and tenant must inspect before/at/shortly after possession, record damages and a remediation plan, and sign a written statement; landlord must provide the statement to the tenant.
    • Move‑out: inspection must occur after notice to vacate but before lease expiration; landlord may not re‑enter until inspection (except as provided in §47‑16‑07.3). The inspection statement must include an agreed reasonable estimate of costs to be withheld; tenant receives a copy.
    • Tenant no‑show: if tenant misses a scheduled inspection without prior communication, landlord may inspect, deliver the statement by mail/e‑mail, and the tenant’s absence is deemed acceptance of the landlord’s statement.
    • Landlord no‑show/refusal to schedule: landlord’s failure is deemed acceptance of the premises’ condition and requires full return of deposit and interest.
  • Remedies and transfers
    • Lessors who withhold deposits without reasonable justification are liable for treble damages.
    • On transfer of ownership, the security deposit and accrued interest must be transferred to the new owner; the original lessor remains liable until transfer occurs.
  • Applicability
    • The section applies to the state and political subdivisions that lease property.

Who would be affected

  • Landlords, property managers, and owners of rental housing (administrative burden, inspection scheduling, banking/interest requirements).
  • Tenants (greater documentation of property condition, stronger protections and transparency; potential risks from "deemed acceptance" if absent from inspection).
  • Local governments and state agencies that lease property (subject to same rules).

Procedural / timeline notes

  • Introduced Nov 13, 2024 (per bill header). According to the provided status, the bill failed to pass on second reading (yeas 41, nays 47) and therefore did not advance to enactment in that session.

Considerations

  • The bill increases landlord administrative duties (inspection coordination, interest‑bearing accounts, written estimates) but strengthens tenant protections (signed condition statements, itemized deductions, treble damages for improper withholding).
  • Provisions that treat tenant absence as acceptance and that allow withholding estimates agreed at inspection could become focal points for disputes and litigation; practical impacts would depend on implementation and court interpretation.

Compiled from official sources — confirm details with the bill’s official record.

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