South Carolina’s security deposit law helps landlords steer clear of issues like unclear deductions, missed deadlines, and disagreements over returned funds. Clear knowledge of these rules supports smoother turnovers and more predictable interactions with tenants.
In this guide, landlords learn everything they need to know about these regulations, including the maximum amounts they can request, how to store deposits, whether interest applies, legal grounds for deductions, returning deposits, handling disputes, and more.
Statutes Regulating South Carolina Security Deposits
South Carolina places its security deposit rules within Section 27-40-410 of Title 27, Chapter 40 of the South Carolina Code, which outlines the requirements governing the collection, handling, itemization, and return of residential security deposits by landlords.
Maximum Security Deposit Amounts Under South Carolina Law
South Carolina does not set a maximum limit on residential security deposits. Landlords may collect any amount they consider reasonable, and this applies to all standard residential leases regardless of lease length, property type, or other factors.
South Carolina does not create exceptions to this rule, and no local jurisdictions impose their own caps that override state law.
Security Deposit Storage Regulations
South Carolina does not require landlords to place security deposits in a specific type of account or follow detailed storage rules. Landlords with multiple rental units must disclose their general method of holding deposits to tenants, but state law does not mandate escrow accounts, separate accounts, or formal receipts.
Landlords may choose how to store security deposits, as long as they comply with disclosure requirements and act in good faith.
Security Deposit Interest in South Carolina
South Carolina does not require landlords to place security deposits in interest-bearing accounts. Landlords may hold these funds in any account they choose and will never owe tenants interest on the deposit.
Making Security Deposit Deductions
Security deposit deductions help landlords recover lost rent and maintain a property’s overall condition. Tenants sometimes default on payments and leave damage that goes beyond normal wear and tear. As such, landlords rely on deposit funds to cover repairs and return the unit to the condition documented at move-in.
When Landlords Can Deduct
South Carolina landlords may draw from a tenant’s security deposit for the following reasons:
- Damage that exceeds normal wear and tear and requires repairs.
- Unpaid rent or other charges listed in the lease.
- Cleaning costs needed to restore the unit to move-in cleanliness.
- Repair or replacement of items damaged through tenant negligence.
- Costs to correct unauthorized alterations made by the tenant.
When Landlords Can’t Deduct
South Carolina landlords may not draw from a tenant’s security deposit for the following reasons:
- Improvements that enhance the property beyond its original condition.
- Routine cleaning associated with a normal turnover.
- Repairing worn or aging items that deteriorated under ordinary use.
- Costs tied to required maintenance a landlord must handle.
- Damage caused by events outside the tenant’s control, including storms.
Necessary Documentation to Accompany Deductions
South Carolina requires landlords to give tenants a written, itemized list of any deductions taken from the security deposit. State law does not require receipts or invoices, but the list must clearly describe each charge and show the exact amount withheld.
What to Do When Deductions are Greater Than the Deposit
Tenants sometimes leave damage or unpaid charges that exceed the security deposit. When this happens, South Carolina landlords may bill the former tenant for the remaining balance and should keep strong documentation to support the claim. Landlords must still send the required itemized list within 30 days of the tenant vacating, even if the deposit falls short.
If the tenant refuses to pay, the landlord may pursue the remaining balance through a collections agency of by taking their former tenant to South Carolina small claims court.
Returning Security Deposits to Tenants
South Carolina law outlines how landlords must return any remaining portion of a tenant’s security deposit after applying lawful deductions. These rules help ensure clear communication and proper handling at the end of a tenancy.
Required Timeline for Return
South Carolina requires landlords to return the remaining deposit and provide an itemized list of deductions within 30 days after the tenancy ends and the tenant delivers possession. The 30-day timeline starts once the tenant vacates and returns the keys, giving landlords time to inspect the property and determine any valid charges.
Method for Return
Landlords in South Carolina may return the deposit by check, electronic transfer, or another reasonable method. When deductions apply, landlords must include a written, itemized list that explains each charge and shows the balance owed to the tenant.
Penalties for Late Return
If a landlord fails to return the deposit within 30 days or keeps funds without proper justification, South Carolina law requires the full deposit to be returned. If the landlord acts in bad faith, the tenant may recover up to 3 times the amount wrongfully withheld, along with reasonable attorney fees.
Security Deposit Disputes
When tenants disagree with how a landlord handles their security deposit, they have every right to raise a dispute. Tenants usually start by asking for clarification in writing, then follow with a formal demand if they believe the deductions lack justification. If communication breaks down, some may seek mediation or file a claim in court.
As a landlord, prepare for these situations by using move-in and move-out checklists, staying on top of accounting and bookkeeping, and including clear terms in your lease agreement. Strong documentation, close attention to South Carolina law, and consistent compliance with timelines help reduce disagreements and strengthen your position in any dispute.
Using Condition Reports to Document Damage
When you manage security deposits in South Carolina, protect yourself and your rentals by using detailed condition reports that give you a clear snapshot of the unit’s condition, help set expectations, and support any deductions you need to make with confidence.
To simplify this process, use property management software to create digital reports with photos and videos right from your smartphone. This before-and-after documentation will help keep everything transparent and make your security deposit decisions more straightforward.
Sign up for a free TurboTenant account to keep your inspections organized and document every rental detail with ease.
FAQs: South Carolina Security Deposit Law
Can a landlord deduct painting from a security deposit in South Carolina?
You can deduct painting costs only when a tenant leaves damage that goes beyond normal wear and tear. Routine repainting between occupants never qualifies. When walls show heavy marks, stains, or unauthorized colors, you can use the deposit to restore the unit to its prior condition.
Are nail holes considered normal wear and tear in South Carolina?
Small nail holes from lightweight decor usually count as normal wear and tear in South Carolina, so you cannot deduct for them. Larger holes, wall anchors, or damage from heavy items often require real repairs, and you can deduct those costs when they exceed ordinary wear and tear.
Does the landlord or tenant have to pay for carpet cleaning in South Carolina?
You can charge a tenant for carpet cleaning only when they leave stains or cause damage that clearly exceeds everyday wear and tear. Standard turnover cleaning remains your responsibility. If a tenant leaves pet messes, deep dirt, or heavy wear, you can apply part of the deposit to cover cleaning.
What happens if a landlord doesn’t return a security deposit within 30 days in South Carolina?
When you fail to return the deposit or provide an itemized list of deductions within 30 days, you risk owing the tenant the full amount you held. Courts may also award additional damages and fees when a landlord ignores South Carolina’s timeline or improperly handles the return.
