Getting The Deposit Back
G.S. 42-52 — a written itemization within 30 days, and a cap set by how often rent is due
The deposit is capped by how often rent is due. In North Carolina, a security deposit cannot exceed two weeks' rent in a week to week tenancy, one and one-half months' rent in a month to month tenancy, and two months' rent for terms longer than month to month.
The landlord keeps the deposit in a trust account with a licensed and federally insured bank or trust institution, or furnishes a bond from a licensed insurance company instead. Within 30 days after the lease begins, the landlord tells the tenant the name and address of the bank or institution holding it, or of the insurer providing the bond.
- Unpaid rent, and water, sewer or electric charges the landlord provides under the utility statutes.
- Damage to the premises, including damage to smoke alarms or carbon monoxide alarms.
- Damages from not finishing the rental period, unless the tenant ended it under the military or domestic violence early termination sections, was forced out by an unlawful lockout, or was constructively evicted by the landlord's failure to keep the home fit.
- Unpaid bills that become a lien on the property because of the tenant's occupancy.
- The costs of re-renting after the tenant's breach, including reasonable fees paid to a licensed broker.
- The costs of removing and storing the tenant's property after an eviction, court costs, and the fees the late fee section allows.
Once the tenancy ends and the landlord has the premises back, the landlord has 30 days to mail or deliver a written itemization of any damage with the balance of the deposit. If the extent of the claim cannot be settled within 30 days, an interim accounting is due within 30 days and a final accounting within 60 days. Nothing may be kept for normal wear and tear, and nothing beyond the landlord's actual damages.
A willful failure forfeits the right to keep any of it. A tenant can sue for an accounting and the balance of the deposit. A landlord's willful failure to follow the deposit, bond or notice rules voids the landlord's right to keep any part of the deposit, the tenant may recover the damages the noncompliance caused, and on a finding of willful noncompliance the court may award attorney's fees.
If the tenant's address is unknown, the landlord applies the deposit after 30 days and holds the balance for the tenant to collect for at least six months. A landlord may also charge a reasonable, nonrefundable fee for pets. These rules apply to anyone in the business of renting or managing residential units by the week, month or year, except single rooms.
Sources for this section (6)
- G.S. 42-52 — Landlord's obligations
- G.S. 42-51 — Permitted uses of the deposit
- G.S. 42-50 — Deposits from the tenant
- G.S. 42-55 — Remedies
- G.S. 42-53 — Pet deposits
- G.S. 42-56 — Application of Article
Legal information, not legal advice. Verified as of September 2026. Applying it to a particular situation is the work of a licensed North Carolina attorney.