North Dakota: Late Rent Fee Limits

What actually governs a late fee in North Dakota

North Dakota's residential landlord-tenant law is the Leasing of Real Property
chapter, N.D.C.C. ch. 47-16. Read section by section, it covers leases and their
terms, security deposits, repairs and habitability, landlord entry, termination,
and eviction — but it says nothing about a late fee on overdue rent. There is no
statutory maximum, no required grace period, and no rule that a late fee be
disclosed in writing.

That leaves a late fee to the lease and to ordinary contract law. In practice
this means three things. First, a landlord may charge a late fee only if the
rental agreement provides for one; a fee that is not in the agreement is not
owed. Second, because there is no statutory ceiling, the size of the fee is
whatever the lease sets — subject to the general contract-law rule that a
stipulated charge must be a reasonable estimate of the landlord's loss, not a
penalty, and to the chapter's unconscionability provision (§ 47-16-13.3), under
which a court can refuse to enforce or trim an unconscionable lease term. Third,
the "grace period" is whatever the lease says; the statute imposes none.

What trips people up

A landlord cannot charge you a fee just to accept your rent. Section
47-16-20.1 says a landlord "may not charge a tenant a fee to accept cash, a
check, or a money order for the payment of rent or any other payment." That is
not a late-fee rule, but it stops a landlord from bolting a payment-processing
charge onto rent and calling it something else. A true late fee — for rent that
is actually overdue — still comes only from the lease.

Unconscionability, not a dollar cap, is the ceiling. Because no statute caps
the fee, a tenant contesting an excessive late fee argues it is an unenforceable
penalty under contract law or an unconscionable term the court may refuse to
enforce under § 47-16-13.3. In an action under the chapter's habitability and
maintenance sections (§§ 47-16-13.1 to -13.6), a court may award attorney's fees
to the prevailing party (§ 47-16-13.6). North Dakota also bars local governments
from controlling the amount of rent (§ 47-16-02.1).

Common questions

Is there a maximum late fee in North Dakota? No. No statute caps a
residential late fee, so the amount is whatever the lease provides, subject to
the general rule that it be reasonable rather than a penalty and not
unconscionable.

Do I have to pay a late fee that isn't in my lease? No. With no statute
creating a late fee, the charge exists only if the rental agreement provides for
it.

Can the landlord add a fee for taking my check or money order? No. Section
47-16-20.1 bars a fee to accept cash, a check, or a money order for rent or any
other required payment.

Statutes and sources

• N.D.C.C. § 47-16-20.1 — a landlord may not charge a fee to accept a rent
  payment.

  A landlord may not charge a tenant a fee to accept cash, a check, or a money
  order for the payment of rent or any other payment required by the landlord
  under a lease for real property.

Official source: https://ndlegis.gov/cencode/t47c16.pdf (accessed 2026-07-20)
- N.D.C.C. § 47-16-13.3 — a court may refuse to enforce, or may limit, an
unconscionable residential rental-agreement provision.

If a court of competent jurisdiction, as a matter of law, finds: a. A
residential dwelling unit rental agreement or any provision thereof was
unconscionable when made, the court may refuse to enforce the agreement,
enforce the remainder of the agreement without the unconscionable provision,
or limit the application of any unconscionable provision to avoid an
unconscionable result.

Official source: https://ndlegis.gov/cencode/t47c16.pdf (accessed 2026-07-20)
- N.D.C.C. § 47-16-02.1 — local governments may not control the amount of
rent.

A political subdivision may not enact, maintain, or enforce an ordinance or
resolution that would have the effect of controlling the amount of rent
charged for leasing private residential or commercial property.

Official source: https://ndlegis.gov/cencode/t47c16.pdf (accessed 2026-07-20)