When you rent a property, you're making an agreement with the landlord that you'll take care of the property, pay your rent on time, and follow the rules set forth in the rental agreement. Landlords usually collect a security deposit as a precaution, often one to one and-a-half times the amount of rent. However, most states have laws restricting the amount a landlord may collect as a deposit and how soon the deposit (after reasonable costs are deducted) must be returned. Landlords and tenants also are beholden to the terms of the rental agreement, which is a legally binding contract.
Learn about North Carolina's security deposit laws, including the maximum amount a landlord may require and rules for storing the deposits, in the sections below.
North Carolina Security Deposit Laws: The Basics
If you're moving into a new apartment but still haven't received your deposit from the last place, you may feel pressured and confused. Statutory language isn't always written with the average citizen in mind, which is why we've summarized the law for you below.
|Statute||North Carolina General Statutes Chapter 42, Sections 50-56|
|Security Deposit Maximum||
|Storage of Security Deposit||
Landlord must inform tenant within 30 days of the start of the lease term regarding the name and address of the institution holding the deposit or providing the bond.
Landlord may charge a reasonable, nonrefundable fee for pets kept by the tenant on the premises.
|Tenant Action for Nonpayment of Deposit||
Tenant may file a civil lawsuit against the landlord in order to recover the balance of the deposit (minus reasonable deductions) if landlord fails to do so. If the court determines that the landlord acted with willful noncompliance, the plaintiff may recover attorney's fees.
|What Can A Landlord Deduct?||
Landlords may deduct for reasonable fees and expenses incurred during the rental period, including:
Note: Funds can't be deducted from the security deposit for "normal wear and tear" on the property.
|Deadline for Returning a Tenant's Security Deposit||
Landlord must return the balance of the deposit (amount paid minus reasonable, itemized deductions) within 30 days after termination of lease and vacancy of premises.
If tenant fails to provide the landlord with a mailing address, the landlord shall hold the balance of the deposit for at least 6 months.
Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Research the Law
North Carolina Security Deposit Limit Laws: Related Resources
Having Trouble With Your Security Deposit? Get Help From a North Carolina Attorney
Landlords are required to abide by certain laws regarding security deposits, including the timely return of what's owed. While sometimes simply contacting your landlord can clear up misunderstandings or mistakes, you may need to exercise your legal options. Get started today by contacting an experienced North Carolina landlord-tenant law attorney near you.
Contact a qualified attorney.