| Quick Facts | Answer |
| Acceptable Deductions | Unpaid rent, late fees, utilities & bills
Costs of damage Damages due to early termination Costs of re-renting due to breach of lease Costs to remove or store tenant’s belongings Court costs |
| Return Deadline | 30 days |
| Itemized Deductions | Required |
| Penalty for Late Return | Amount due + attorneys’ fees |
For laws on security deposit collections and holdings in North Carolina, click here.
Security Deposit Deductions in North Carolina
In North Carolina, the following can be deducted from security deposits:
- Unpaid rent, late fees, utilities, or bills
- Costs of damage excluding normal wear and tear
- Damages as a result of early termination of the lease
- Costs of re-renting the unit as a result of a breach of the lease
- Costs to remove or store tenant’s belongings
- Court costs
Most states, such as North Carolina, do not have a legal limit on how much a landlord can charge for damages except that the charges must not exceed the actual costs to the landlord.
If the cost of the damages exceeds the amount of the security deposit, landlords are entitled to seek additional damages from the former tenant.
What is Considered Normal Wear and Tear in North Carolina?
“Normal wear and tear” is deterioration that occurs naturally as a result of the tenant using the property as it was designed to be used.
Examples include:
- Gently worn carpets
- Lightly scratched glass
- Faded paint and flooring
- Lightly dirtied grout
- Loose door handles
- Stained bath fixtures
“Damage” means destruction to the rental unit that occurs because of abuse or negligence by a tenant during the course of the tenancy.
Examples include:
- Heavily stained, burned, or torn carpets
- Broken tiles or windows
- Holes in the wall
- Missing fixtures
Can the Landlord Charge for Replacing the Carpet in North Carolina?
Landlords can charge for replacing the carpet if it is damaged beyond normal wear and tear.
A carpet that is slightly discolored or gently worn will be considered normal wear and tear. A carpet with visible stains, major discoloration and rips will be considered excessively damaged.
Can the Landlord Charge for Nail Holes in North Carolina?
In North Carolina, landlords can charge a tenant for nail holes if they damage the walls in a way that is not a result of ordinary enjoyment of the rental unit.
Tenants have the right to use the walls within their unit in a reasonable way. This includes inserting small nails or thumbtacks to hang posters or pictures.
However, large holes from drilling, multiple nail holes, large nail holes, and holes made for hanging heavier things may be considered damage and thus, chargeable to the tenant.
Can the Landlord Charge a Cleaning Fee in North Carolina?
Landlords in North Carolina can charge a cleaning fee if it is specifically stated in the lease agreement.
Landlords can also make deductions for cleaning from the security deposit if the tenant causes damage that requires the unit to be cleaned.
Can the Landlord Charge for Painting in North Carolina?
In North Carolina, landlords can charge for painting, except for normal wear and tear. For example, if the tenant:
- Causes damage beyond normal wear and tear
- Repaints the wall but is not permitted to do so under the lease agreement
- Repaints the wall in an unprofessional way
Normal wear includes:
- Minor scrapes from daily use
- Fading due to sunlight
- Minor cracks in the original paint
Landlords can charge for repainting if the damage is not the result of normal use. This includes stains, large or deep scratches, and water damage.
Security Deposit Returns in North Carolina
Landlords must return a security deposit with an itemized statement (if there are deductions) to the tenant’s last known address no later than 30 days after the lease ends and the tenant vacates the rental unit.
How Long Do Landlords Have to Return Security Deposits in North Carolina?
North Carolina landlords have 30 days after the lease ends and the tenant vacates the rental unit to return any unused portion of the security deposit.
Do Landlords Owe Interest on Security Deposits in North Carolina?
Unlike in some states, such as New Jersey, landlords in North Carolina do not owe interest on security deposits.
How Do Landlords Give Notice in North Carolina?
If deductions are to be made from the security deposit, an itemized statement of damages must be sent by mail or hand-delivery to the tenant’s last known address no later than 30 days after the lease ends and the tenant vacates the rental unit.
If the landlord cannot determine their damages within 30 days, they must provide the tenant with an estimate by 30 days and then a final accounting of damages within 60 days after the lease ends and the tenant vacates the rental unit.
If the landlord does not know the tenant’s address, they must hold the remaining portion of the security deposit for the tenant to claim for at least six months.
Can a Security Deposit Be Used for Last Month’s Rent in North Carolina?
North Carolina law does not forbid the security deposit from being used for any outstanding rent.
Landlords can include a provision in the lease agreement that the security deposit cannot be used for the last month’s rent until the tenant vacates the rental unit.
Security Deposit Disputes in North Carolina
If landlords do not return the security deposit within the required time period, tenants can file a claim in court for up to the amount of the deposit due to the tenant plus reasonable attorneys’ fees.
Tenants can also take legal action against a landlord for:
- Failure to provide an itemized statement that lists deductions if the security deposit is not returned in full
- Failure to hold the security deposit in an escrow account or post a bond
- Unreasonable deductions
If the court finds that the landlord intentionally failed to comply with the security deposit rules, the tenant may be awarded the full amount of the security deposit.
How Can Tenants File a Dispute for a Security Deposit in North Carolina?
If a landlord fails to perform their obligations regarding a security deposit, the tenant can file a dispute in the small claims division of District Court if the amount of damages is less than $10,000, although the maximum claim amount in some counties is $5,000. If the amount is greater, the tenant must file a civil case in District Court.
A small claims case regarding the return of a security deposit must be filed within 3 years. Cases are filed in the District Court where the defendant lives. An attorney is not required but permitted.Filing fees are $96.
Sources
- 1 NC Gen Stat § 42-51
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Security deposits for residential dwelling units shall be permitted only for the following…nonpayment of rent and costs for water or sewer…Damage to the premises…Damages as the result of the nonfulfillment of the rental period…unpaid bills…costs of re-renting the premises after breach…costs of removal and storage of the tenant’s property…Court costs.
Source Link - 2 NC Gen State § 42-52
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The landlord may not withhold as damages part of the security deposit for conditions that are due to normal wear and tear nor may the landlordretain an amount from the security deposit which exceeds his actual damages.
Source Link - 3 NC Gen Stat § 42-52
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…the landlord in writing shall itemize any damage and mail or deliver same to the tenant, together with the balance of the security deposit, no later than 30 days after termination of the tenancy and delivery of possession of the premises to the landlord.
Source Link - 4 NC Gen Stat § 42-52
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…the balance of the security deposit, no later than 30 days after termination of the tenancy and delivery of possession of the premises to the landlord.
Source Link - 5 NC Gen Stat § 42-52
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…the landlord in writing shall itemize any damage and mail or deliver same to the tenant…after termination of the tenancy and delivery of possession of the premises to the landlord.
Source Link - 6 NC Gen Stat § 42-52
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If the extent of the landlord’s claimagainst the security deposit cannot be determined within 30 days, the landlord shall provide the tenant with an interim accounting no later than 30 days…
Source Link - 7 NC Gen Stat § 42-52
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…shall provide a final accounting within 60 days after termination of the tenancy and delivery of possession of the premises to the landlord.
Source Link - 8 NC Gen Stat § 42-52
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If the tenant’s address is unknown the landlord…shall hold the balance of the deposit for collection by the tenant for at least six months.
Source Link - 9 NC Gen Stat § 42-52
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If the landlord…fails to account for and refund the balance of the tenant’s security deposit as required by this Article, the tenant may institute a civil action to require the accounting of and the recovery of the balance of the deposit.
Source Link - 10 NC Gen Stat § 42-55
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The willful failure of a landlord to comply with the deposit, bond, or notice requirements of this Article shall void the landlord’s right to retain any portion of the tenant’s security deposit…
Source Link - 11 NC Gen Stat § 7A-210
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…a small claim action is a civil action wherein…amount in controversy…doesnot exceed ten thousand dollars…
Source Link - 12 NC Gen Stat § 1-52
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Within three years an action…Upon a contract, obligation or liability arising out of a contract, express orimplied…Upon a liability created by statute…
Source Link
