North Carolina Security Deposit Limits & Return Rules

Security deposits can be a source of tension for renters and landlords. If you rent in North Carolina, knowing the rules about security deposit limits and return deadlines can help you avoid misunderstandings and stand up for your rights.

How Much Can Landlords Charge for Security Deposits?

Under North Carolina landlord-tenant law, landlords must follow clear rules about security deposits. The legal maximum depends on the rental term:

• Week-to-week lease: Up to two weeks' rent
• Month-to-month lease: Up to one and one-half months' rent
• Leases longer than month-to-month: Up to two months' rent

Landlords cannot charge "nonrefundable deposits." They also must give you written notice outlining where your deposit will be held.

When Should You Get Your Security Deposit Back?

Landlords have a legal deadline to return your security deposit after you move out. North Carolina law requires:

• Within 30 days: Landlords must return your deposit in full, or send you an itemized written list of deductions with the remaining amount.
• Extension up to 60 days: If final costs (like for repairs) are unknown, landlords must send an interim accounting at 30 days and a final statement within 60 days after you move out.

Reasons Landlords Can Deduct from Your Security Deposit

Your landlord can only keep amounts needed for:

• Unpaid rent or bills
• Damage beyond normal wear and tear
• Costs of late fees or breaches of the lease
• Unreturned keys or property

Normal wear and tear, like minor scuffs or faded paint, does not justify withholding your deposit.

How to Request Your Security Deposit Back

At move-out, give your landlord a forwarding address so they know where to send your deposit. If the landlord does not respond within the deadline, you may need to take further steps to recover your money. See "How to File a Complaint" below for official forms and instructions.

Official Tribunal Handling Tenant Complaints

If you don’t receive your deposit back on time, you can file a claim in North Carolina Small Claims Court. This is often handled at your county's Magistrate Court, part of the North Carolina Judicial Branch.

Relevant Forms for Renters

• Complaint in Summary Ejectment (AOC-CVM-201): AOC-CVM-201 form is used primarily by landlords for eviction, but tenants can respond to claims if their security deposit is at issue.
• Money Owed Complaint (AOC-CVM-200): AOC-CVM-200 form is the primary form to file if you’re a tenant trying to recover your deposit. This form lets you sue the landlord for amounts up to $10,000 in Small Claims Court. Complete the form, file it at your local county courthouse, and attend your scheduled hearing.

Summary of North Carolina Security Deposit Laws

• Limits on how much a landlord can collect based on your lease term
• Strict deadlines for returning deposits and providing itemized lists of any deductions
• Clear lawful reasons for any deductions
• Specific forms and courts for you to take legal action if your rights are violated

Frequently Asked Questions

1. What is the maximum security deposit a landlord can charge in North Carolina?
   For a month-to-month lease, the maximum is one and a half months' rent. For week-to-week, it’s two weeks’ rent; for longer leases, up to two months’ rent.
2. When should I get my security deposit back after moving out?
   The landlord must return your deposit or send an itemized statement within 30 days. If all costs can’t be known in 30 days, an extension to 60 days is allowed, with an interim notice at 30 days.
3. What counts as normal wear and tear?
   Common examples include minor nail holes, worn carpet, or faded paint. These cannot be deducted from your deposit, but damage like large holes or broken appliances can be deducted.
4. Can I sue my landlord if I don't get my security deposit back?
   Yes. You can file a claim for up to $10,000 in Small Claims Court using the official AOC-CVM-200 form.
5. Do landlords need to tell me where my deposit is held?
   Yes, North Carolina law requires landlords to provide written notice of the bank or institution holding your deposit within 30 days of receiving it.

Need Help? Resources for Renters

• North Carolina Judicial Branch – Landlord/Tenant Information
• NC Housing Coalition – Tenant Resources
• Legal Aid of North Carolina – Housing Rights
• North Carolina Attorney General – Landlord/Tenant Rights

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1. North Carolina’s security deposit rules are outlined in N.C. General Statutes Chapter 42, Article 6 — Landlord and Tenant: Security Deposits.
2. Official forms and court procedures are available through North Carolina Judicial Branch.
3. Further public resources and legal assistance can be found at Legal Aid of North Carolina.

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