North Dakota Rent Late Fee Calculator
Calculate rent late fees and verify compliance with North Dakota state regulations. Free instant calculator with legal compliance verification.
North Dakota represents one of the most landlord-friendly states in the nation regarding rent late fees, with no statutory cap, no mandatory grace period, and minimal regulatory oversight. This creates significant flexibility for landlords while relying entirely on contract law and reasonableness standards to protect tenants.(NDCC § 47-16-01 to 47-16-42)
However, pending legislation in Senate Bill 2236 (introduced January 2025) proposes North Dakota's first statutory late fee cap at 8% of monthly rent with anti-compounding provisions. If passed, this would mark a significant shift toward tenant protection in the state.
Leasing of Real Property - Governs lease formation, landlord/tenant duties, and general rental obligations (does not specify late fee caps)
Related Statutes
In the absence of statutory caps, North Dakota landlords employ widely varying late fee structures ranging from $10 to $100+, or 5-15% of monthly rent. The only legal constraint is the general requirement that fees be 'reasonable' and clearly disclosed in the lease agreement.
For example, a $75 late fee on $1,000 rent (7.5%) would likely be upheld as reasonable, while a $500 fee (50%) might be struck down as unconscionable—though no North Dakota statute prohibits it. Courts have broad discretion to invalidate excessive fees if challenged, but the burden is on tenants to prove fees are unreasonable.
Proposed Changes Under SB 2236 (If Enacted):
- Maximum late fee: 8% of monthly rent
- Anti-compounding provision: Late fees cannot be charged on top of previous late fees
- Exception: Compounding allowed if total remains under 8% of rent
- Implementation: Would apply statewide if enacted
- Example: For $1,000/month rent, maximum late fee would be $80
Fargo
Fargo, North Dakota's largest city, follows state law without additional late fee caps. The city has adopted rental registration requirements and property maintenance codes, but late fee amounts remain unregulated at the municipal level.
Learn moreBismarck
As the state capital, Bismarck enforces state statutes without municipal late fee ordinances. Landlords have discretion on fee amounts within general reasonableness standards.
Grand Forks, Minot, and Other Cities
All North Dakota municipalities follow state law for late fees. Local ordinances focus on housing quality, licensing, and safety rather than fee regulation.
SB 2236 - Proposed 8% Late Fee Cap
Introduced in January 2025, Senate Bill 2236 represents a significant shift toward tenant protection by proposing North Dakota's first statutory late fee cap at 8% of monthly rent. The bill includes anti-compounding provisions preventing late fees on top of previous late fees unless the total remains under 8%. Status: Under consideration as of November 2025. If passed, existing leases with fees exceeding 8% would become void and unenforceable, requiring landlords to reduce fees to comply. Tenants and landlords should monitor the North Dakota Legislative Assembly website for updates.
South Dakota
No cap, reasonableness standard (similar to current North Dakota)
Minnesota
No cap, reasonableness standard (similar to current North Dakota)
Montana
Reasonableness standard, no specific cap (similar to current North Dakota)
Wisconsin
No cap, but Madison has 5% municipal limit
Landlord Best Practices:
- •Set fees at 5-8%: Stay within industry norms and proposed SB 2236 cap to minimize legal risk
- •Provide written disclosure: Include exact late fee amount and timing in every lease
- •Consider voluntary grace period: 3-5 days reduces tenant disputes
- •Monitor SB 2236: Track legislative developments and adjust fees if cap is enacted
- •Document actual costs: Maintain records showing administrative expenses from late payments
- •Apply fees consistently: Selective enforcement may violate fair housing laws
- •Avoid compounding: Don't charge late fees on top of previous late fees
- •Communicate clearly: Send written notices when late fees are assessed
Tenant Best Practices:
- •Read lease carefully: Understand exact late fee amount and when it applies
- •Request grace period: Ask for 3-5 day grace period if not already provided
- •Document payments: Keep receipts, bank records, and proof of all rent payments
- •Challenge excessive fees: If charged more than 10%, request written justification
- •Pay rent separately from late fees: If disputing fees, pay rent in full to avoid eviction
- •Know your rights: Late fees must be in written lease to be enforceable
- •Track SB 2236: Monitor potential 8% cap legislation that could protect you
- •Seek legal help: Contact Legal Services of North Dakota for free assistance with disputes
North Dakota Legislative Assembly
Official source for NDCC statutes and legislative updates including SB 2236 status
Legal Services of North Dakota
Provides free legal assistance for low-income tenants facing housing disputes
ND Attorney General Consumer Protection
Offers consumer protection guidance including landlord-tenant dispute resources
North Dakota Housing Finance Agency
State agency providing rental assistance and housing resources
Frequently Asked Questions - North Dakota
No statutory limit. Reasonableness standard applies. Must be in written lease agreement.
View Official State Law →Updated October 2025