Most residential leases and rental agreements in North Carolina require a security deposit. This is a dollar amount, usually one month's rent, that's intended to cover damage to the premises beyond normal wear and tear, and to cushion the financial blow if a tenant skips out early on the lease without paying. Here’s a summary of North Carolina landlord-tenant laws that cover the use and return of security deposits.
Yes. Under North Carolina landlord-tenant laws, a landlord may charge a tenant the equivalent of one and one-half months' rent for the security deposit on month-to-month rental agreements, and two months' rent if the rental term is longer than two months. North Carolina landlords may add an additional "reasonable," nonrefundable pet deposit.
To learn more about steps that tenants can take to protect their security deposit after they've paid it, check out Nolo's article Protect Your Security Deposit When You Move In.
Under North Carolina law, a landlord must return the tenant's security deposit within 30 days after the tenant has moved out. If the landlord's claim against the deposit can't be finalized within that time (for example, if necessary repairs haven't been completed), the landlord may send an interim accounting at the 30-day point and then a final accounting within 60 days of the tenancy's termination.
Learn more about tenants' rights and landlords' obligations when it comes to the return of the security deposit in Nolo's chart Cleaning and Repairs a Landlord Can Deduct from a Security Deposit and Nolo's article Get Your Security Deposit Back.
Yes. In addition to complying with North Carolina laws on security deposit limits and how (and when) the deposit must be returned to tenants, landlords in North Carolina must, within 30 days of the beginning of the lease term, disclose the name and address of the banking institution where the deposit is located.
If you want to go right to the source and look up North Carolina law on security deposits—or if you're writing a letter to your landlord or tenant and want to cite the applicable law—the relevant statute(s) can be found at North Carolina General Statutes sections 42-50 to 42-56 (2020). To access North Carolina's statutes, visit the North Carolina General Assembly's website, or check out the Library of Congress’s legal research site.