North Dakota lawmakers propose new rules for security deposits and tenant inspections

North Dakota's House Bill 1272 aims to enhance tenant protections by establishing new regulations for move-in and post move-out inspections of leased properties, alongside amendments to existing security deposit laws. Introduced on February 7, 2025, by a bipartisan group of legislators, the bill seeks to address ongoing concerns regarding tenant rights and property management practices.

The key provisions of House Bill 1272 include mandatory inspections of rental properties before tenants move in and after they move out. This initiative is designed to ensure that properties meet safety and habitability standards, providing tenants with a clear record of the property's condition. Additionally, the bill amends the existing security deposit regulations, stipulating that landlords must place security deposits in federally insured interest-bearing accounts. This change aims to protect tenants' funds and ensure they receive any accrued interest upon lease termination.

Notably, the bill allows landlords to charge higher security deposits—up to two months' rent—under specific circumstances, such as when a tenant has a felony conviction or a history of violating rental agreements. This provision has sparked debate among lawmakers and tenant advocacy groups, with some arguing it could disproportionately affect vulnerable populations seeking housing.

The implications of House Bill 1272 are significant. By instituting formal inspection processes, the bill could lead to improved living conditions for tenants and greater accountability for landlords. However, the potential for increased financial burdens on certain tenants raises concerns about accessibility to housing for those with prior convictions or rental issues.

As the legislative process unfolds, stakeholders are closely monitoring the bill's progress. Experts suggest that if passed, House Bill 1272 could set a precedent for tenant rights legislation in North Dakota, potentially influencing similar measures in other states. The bill's future will depend on ongoing discussions and potential amendments as it moves through the legislative assembly.