{"id":375477,"date":"2019-05-16T16:05:28","date_gmt":"2019-05-16T21:05:28","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/state\/north-carolina-law\/north-carolina-security-deposit-laws.html"},"modified":"2019-05-20T16:34:45","modified_gmt":"2019-05-20T21:34:45","slug":"north-carolina-security-deposit-laws","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/state\/north-carolina-law\/north-carolina-security-deposit-laws.html","title":{"rendered":"North Carolina Security Deposit Laws"},"content":{"rendered":"\n
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North Carolina Security Deposit Laws<\/h1>\n
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Created by FindLaw’s team<\/a> of legal writers and editors<\/i><\/p>\n\n | Last reviewed\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

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<\/a> 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.<\/p>\r\n

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.<\/p>\r\n

North Carolina Security Deposit Laws: The Basics<\/h2>\r\n

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.<\/p>\r\n\r\n
Statute<\/b><\/td>\r\nNorth Carolina General Statutes Chapter 42, Sections 50-56<\/a><\/td>\r\n<\/tr>
Security Deposit Maximum<\/b><\/td>\r\n
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  • Up to 2 weeks<\/i><\/b> rent for week-to-week rentals;<\/li>\r\n
  • Up to 1 and 1\/2 months<\/b><\/i> rent for month-to-month rentals; and<\/li>\r\n
  • Up to 2 months<\/i><\/b> rent for terms greater than month-to-month (i.e. annual).<\/li>\r\n<\/ul>\r\n<\/td>\r\n<\/tr>
Storage of Security Deposit<\/b><\/td>\r\n

North Carolina landlords are required to place security deposits into a trust account<\/a> or furnish a bond from an insurance company<\/a>.<\/p>\r\n

Landlord must inform tenant within 30 days<\/i><\/b> of the start of the lease term regarding the name and address of the institution holding the deposit or providing the bond.<\/p>\r\n<\/td>\r\n<\/tr>

Pet Deposits<\/b><\/td>\r\n

Landlord may charge a reasonable, nonrefundable fee for pets kept by the tenant on the premises.<\/p>\r\n<\/td>\r\n<\/tr>

Tenant Action for Nonpayment of Deposit<\/b><\/td>\r\n

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.<\/p>\r\n<\/td>\r\n<\/tr>

What Can A Landlord Deduct?<\/b><\/td>\r\n

Landlords may deduct for reasonable fees and expenses<\/a> incurred during the rental period, including:<\/p>\r\n

Deadline for Returning a Tenant’s Security Deposit<\/b><\/td>\r\n

Landlord must return the balance of the deposit (amount paid minus reasonable, itemized deductions) within 30 days<\/i><\/b> after termination of lease and vacancy of premises.<\/p>\r\n

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<\/i><\/b>.<\/p>\r\n<\/td>\r\n<\/tr><\/tbody><\/table>\r\n

Note:<\/b> 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.<\/i><\/p>\r\n

Research the Law<\/h2>\r\n