Most rental agreements in North Carolina require a security deposit from tenants. Under the state’s landlord-tenant laws, the security deposit can be up to as much as two times the monthly rental cost.

When you are ready to move out, the landlord has 30 days to refund your deposit, assuming there is no damage beyond typical wear and tear.

Renting a property comes with a pretty large up-front cost. As a tenant, you should be aware of your rights.

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What is North Carolina’s law on security deposits?

Security deposits in North Carolina are refundable as long as your rental contract ends under the terms described in the lease.

This means that when you make a security deposit, you should expect to get your funds back as long as you didn’t do any damage beyond normal wear and tear or end your rental contract outside of the time specified in your lease.

The

Tenant Security Deposit Act

of North Carolina establishes the rules for security deposits, reasons for withholding a security deposit from a tenant, and states where security deposits should be held while landlords prepare to make a refund.

What is the maximum security deposit a landlord can charge in North Carolina?

In North Carolina, security deposits generally cannot exceed more than two times the rental charge. If the tenant is renting on a weekly basis, the security deposit cannot be greater than the amount of two weeks’ rent.

However, if the tenant is renting month to month, the security deposit cannot exceed one and a half times the monthly rent cost.

One thing you’ll need to consider before moving is that the landlord can charge the deposit amount on top of your first month’s rent. For this reason, you should prepare to save up to the equivalent of three months’ rent before you plan a move.

Don’t forget—the entire security deposit should be listed as refundable on your lease. If your landlord charges you a security deposit and claims it’s non-refundable, proceed with caution or have the landlord explain what they mean in more detail, preferably in writing.

How long does a landlord have to return a security deposit in North Carolina?

If your lease has ended and/or you do not plan on renewing the lease, the landlord has 30 days after your move-out date to return your security deposit or a list of any deductions and damages. You may be present at the property for the inspection.

What can a landlord withhold a security deposit for in North Carolina?

A security deposit must be refundable as long as the tenant did not cause damage to the unit beyond normal wear and tear and upheld the terms of the lease.

Landlords are legally able to withhold all or part of your security deposit to cover:

Unpaid rent or late charges

Unpaid utilities or late charges

Damage to the dwelling that exceeds normal wear and tear

Damage to smoke and carbon monoxide alarms

Unpaid bills that become a lien against the property

Removal of tenant’s storage or belongings from the property

Breach of rental agreement and costs incurred to re-leasing the unit

Court costs

So what do landlords mean when they say “damage beyond normal wear and tear?” Summed up, normal wear and tear refers to items like painting, cleaning, and repairing small holes in the wall from hanging a poster.

The term damage is used to describe situations beyond normal wear and tear. If the carpet needs replacing because you neglected to care for it or if there are large holes in the walls, you can expect to have some of your security deposit withheld for “damage.”

If your landlord does choose to withhold part of your security deposit, they must give you an itemized list of all deductions within 30 days after your move-out date. No landlord can keep your security deposit without providing a written reason for doing so.

Key Takeaway All North Carolina security deposits are refundable, but your landlord can withhold some or all of the deposit if you cause significant damage to the property or default on your rent payments.

MORE: How to find the best renters insurance

How to get your security deposit back in North Carolina

If it’s been more than 30 days and you are still waiting on your security deposit, you may have a small problem on your hands.

First, try reaching out to your landlord and simply asking for your deposit back. A paper trail is important in this case, so do so in writing. It’s possible your landlord just forgot to mail it out to you, so don’t react in anger just yet.

If a landlord is refusing to return your security deposit and you believe they are wrongly doing so, you can take them to

small claims court

. If your deposit was large, this may be the road you want to take. Keep in mind, though, that taking things to court can be long and stressful.

As a tenant, you have up to six months to claim your refunded security deposit.

MORE: Penalties for driving without insurance

How to save money on car and renters insurance in North Carolina

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FAQs

Can I use my security deposit as the last month’s rent in North Carolina?

No. You’ll have to pay last month’s rent separately from your security deposit. You should not plan on having that cash immediately on hand, as a landlord has up to 30 days to process your refund.

Can a landlord charge for carpet cleaning in North Carolina?

Your landlord can only charge you for a carpet cleaning fee if it was stated in your lease agreement.

Occasionally, you’ll have to pay an additional pet deposit that would cover any carpet cleaning fees determined necessary by the landlord in the event of pet stains or damage.

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