North Dakota Late Rent Fee Laws: Limits, Grace Periods, and Penalties
What North Dakota landlords can charge when rent is late, how long they must wait, and what an illegal fee costs. Last reviewed 2026-08-16.
How much can a landlord charge in North Dakota?
North Dakota Century Code chapter 47-16 governs landlord and tenant relations and contains no late fee provision at all, so there is no dollar or percentage ceiling. The binding constraint is N.D.C.C. § 9-08-04, which voids any contract term fixing damages for a breach in advance, except where the parties agree on an amount presumed to be the damage in cases where it would be impracticable or extremely difficult to fix actual damage. A late fee that reasonably approximates the landlord's cost of a late payment survives that test; one that functions as a penalty does not. The state landlord-tenant handbook states plainly that a late fee is legal only if it is a provision of the lease and the lease states the amount and the date it takes effect.
How late does rent have to be?
There is no statutory grace period in North Dakota. Rent is due on the date the lease sets, and missing that date is a breach, so a late fee can attach the next day if the lease provides for it. A five-day courtesy period is common practice but comes from the lease, not from state law.
Does the fee have to be in the lease?
The lease, verbal or written, must create the late fee and must state both the amount and the date on which it becomes effective; otherwise the charge is not legal. Because North Dakota recognizes oral leases, the safer course is to put the fee term in writing so the amount and trigger are provable.
What happens if you charge too much?
North Dakota imposes no statutory fine on a landlord who overcharges. The remedy is that under § 9-08-04 the clause is void to the extent it fixes damages in advance without meeting the impracticability exception, so the landlord cannot collect and a tenant who already paid can seek it back in small claims court.
Returned payment fees
N.D.C.C. § 6-08-16 makes the issuer of an insufficient funds check liable for collection fees or costs not exceeding forty dollars per instrument, recoverable by the holder, and allows a separate civil action for a penalty of the lesser of two hundred dollars or three times the check amount. The forty dollar figure is the practical ceiling on a landlord's NSF charge.
Recent changes to the law
House Bill 1610, signed March 27, 2025 and effective August 1, 2025, added N.D.C.C. § 47-16-20.1, prohibiting landlords from charging any fee to accept cash, a check, or a money order for rent or any other payment required under the lease. No 2024-2026 legislation capped late fees or created a grace period.
What North Dakota landlords get wrong
The newest trap for North Dakota landlords is N.D.C.C. § 47-16-20.1, effective August 1, 2025: you may not charge a tenant a fee to accept cash, a check, or a money order for rent or any other payment required under the lease. Convenience fees on those payment methods are now flatly prohibited, and a late fee cannot be repackaged as a payment-method surcharge. On the fee itself, since there is no cap, the whole fight is over § 9-08-04 reasonableness, so keep the charge a single flat amount tied to your actual cost, avoid daily accrual, and state the amount and effective date in the lease. Manufactured home lot rentals are governed separately by chapter 47-16 provisions on mobile home parks.
The law itself
Frequently asked questions
Is there a maximum late fee in North Dakota?
No statute sets one. Chapter 47-16 says nothing about late fees, so the lease controls the amount. The limit comes from section 9-08-04, which voids advance damages clauses unless the amount reasonably stands in for a loss that is impractical to measure. A flat fee near your real cost holds up; a punitive one does not.
Does North Dakota require a grace period before charging a late fee?
No. Rent is late the day after the due date in the lease and a fee can be charged immediately if the lease provides for it. Many North Dakota landlords voluntarily allow about five days, but that is a lease term you choose, not a legal requirement the state imposes on you.
Can a North Dakota landlord charge a fee for paying rent by check or cash?
No. Since August 1, 2025, section 47-16-20.1 prohibits charging a tenant any fee to accept cash, a check, or a money order for rent or any other payment required under the lease. Convenience or processing surcharges on those payment methods are unlawful, and a late fee cannot be relabeled as one.
What can a North Dakota landlord charge for a bounced rent check?
Section 6-08-16 lets the holder recover collection fees or costs up to forty dollars per instrument. The statute also allows a separate civil action for a penalty of the lesser of two hundred dollars or three times the check amount. Put the NSF charge in the lease and keep it at or below forty dollars.
Keep reading
Charging the wrong late fee can cost you more than the rent.
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Start Free TrialThis page is general information, not legal advice. Statutes change — verify against the official text linked above or consult a local attorney before acting.