Real Estate Accounting in Fargo
North Dakota requires deposits to sit in an interest-bearing account for the tenant's benefit and then only pays that interest out where occupancy reached nine months. The account earns from day one; the tenant's entitlement starts later.
Proud AppFolio Stack™ Partners, working directly inside your AppFolio instance.
North Dakota rules that apply here
- Deposit return deadline
- 30 calendar days
- Statute
- N.D.C.C. 47-16-07.1
Why North Dakota Real Estate Professionals Choose REA
AppFolio Expertise, Applied to Fargo
Experts in AppFolio Bookkeeping
Under 47-16-07.1 the deposit goes into a federally insured interest-bearing savings or checking account for the benefit of the tenant, and interest is payable to the tenant where the period of occupancy is at least nine months, accumulated and paid at the end of the agreement. So the account is generating interest across every tenancy, but only some tenancies create an entitlement to it.
Assigned, Responsive Team
That produces a reconciling item most portfolios never surface: interest earned on deposits for tenancies that ended before nine months. It sits in the deposit account without belonging to any tenant, and if it is never swept it makes the account balance permanently exceed the sum of tenant liabilities. We separate earned interest by tenancy and resolve the sub-nine-month portion deliberately rather than letting it silently inflate the trust balance.
Accurate Monthly Bookkeeping
The pet deposit rule is unusually generous and unusually specific: a pet security deposit may not exceed the greater of two thousand five hundred dollars or an amount equivalent to two months' rent. That is a separate limit from the one-month cap on the security deposit itself, so it has to be recorded as its own component rather than folded into a single figure.
Deposit Compliance for Fargo Portfolios
N.D.C.C. 47-16-07.1
North Dakota 47-16-07.1 caps the security deposit at one month's rent and requires return within 30 days after the tenant relinquishes control of the unit. A PET security deposit is separately permitted up to the GREATER of $2,500 or two months' rent, which is a different limit with a different justification, so combining the two into one figure cannot demonstrate either was within its own cap.
The deposit must sit in a federally insured INTEREST-BEARING savings or checking account for the benefit of the tenant, but interest is only payable to the tenant where occupancy reached at least NINE MONTHS, accumulated and paid at the end of the agreement. The account therefore earns across every tenancy while only some create an entitlement, which leaves interest on short tenancies sitting in the account belonging to nobody. Unresolved, it makes the balance permanently exceed the sum of tenant liabilities.
All North Dakota requirementsHow we keep you inside it
- Deposit liabilities tracked per tenant in AppFolio, so a 30 calendar days deadline is answerable from the ledger
- Trust accounts reconciled three ways every month
- Deduction documentation recorded against the correct ledger
- Aging deposits flagged before the statutory window closes
Appfolio Bookkeeping Services from REA
Available to Fargo Operators
Trust Bookkeeping
Leverage Appfolio's powerful bookkeeping capabilities with REA's tailored service.
See how it worksCorporate Bookkeeping
REA's skilled team, in combination with Appfolio's comprehensive toolset, addresses the complexity of your corporate financial activities.
See how it worksBank Reconciliations
Employing Appfolio's state-of-the-art system, REA offers bank reconciliation services that brings meticulous accuracy to your finances.
See how it worksFinancial Diagnostic Cleanup
REA utilizes Appfolio's advanced diagnostic tools to swiftly and effectively troubleshoot financial anomalies.
See how it worksTrust Compliance
REA pairs its accounting prowess with Appfolio's detailed reporting to deliver comprehensive Trust Compliance Verification services.
See how it worksAppFolio Accounting & Bookkeeping Services
For Fargo Portfolios
- Process Review & Set Up
- Bank Reconciliations
- AP / AR
- Accurate NOI, Balance Sheets
- Recording HUD's & Accruals
- Owner Distributions
- Monthly Statements & Reports
- Management Fees
- Corporate Bookkeeping
- Tenant Chargebacks
Take the Whole Close, or One Function
Fargo operators use REA for the full monthly close or for the single function that has become a bottleneck. Each one is performed inside your AppFolio instance.
Trust Accounting
Compliant, audit-ready trust funds
Learn moreBank Reconciliation Services
Three-way reconciliation, every account
Learn moreAccounts Payable & Receivable
Bills paid, rent collected, owners paid
Learn moreBookkeeping Cleanup & Catch-Up
Back books fixed and current
Learn moreCAM Reconciliation
Annual commercial true-ups
Learn moreExperts In All Property Types
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community Associations
- Commercial
Experts In All Property Types
Residential, commercial and everything in between. The asset class changes what the books have to prove, and our teams are staffed accordingly.
- Single-Family
- Multifamily
- Student Housing
- Affordable Housing
- Community AssociationsSee the page
- CommercialSee the page
Check Out What Our Clients Have To Say About Us
Property Managers, Investors & Owner Operators
As REA exclusively specializes in Real Estate, I rest easy knowing my financials are precise every month while saving money at the same time, an invaluable benefit.
I highly recommend Real Estate Accounting (REA) services from this group. They truly are great and have helped us tremendously at a time we needed it the most. I felt very comfortable giving up all my accounting responsibilities to this team and I'm still glad I made the decision to work with this group. Nothing less than an amazing experience!
REA and team have been nothing but excellent helping our firm with its day to day financial needs. Their expertise, professionalism, and timeliness have made our lives so much easier. We foresee a long relationship with REA and team.
Frequently Asked Questions
Do we owe interest on every North Dakota deposit?
Only where the period of occupancy reached at least nine months, paid at the end of the agreement. The account earns from day one regardless, so shorter tenancies generate interest nobody is entitled to.
What happens to interest on short tenancies?
It sits in the deposit account without belonging to a tenant. Left unresolved it makes the account permanently exceed the sum of tenant liabilities, so we separate earned interest by tenancy and deal with that portion deliberately.
How large a pet deposit is allowed?
The greater of $2,500 or two months' rent, which is a separate limit from the one-month cap on the security deposit itself, so it is recorded as its own component.
More in North Dakota
Other North Dakota markets, the platforms we work in, and the functions available on their own.
AppFolio Bookkeeping for Fargo
Schedule a call and we will review your AppFolio setup, your North Dakota deposit handling, and what it takes to close clean every month.