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North Carolina Security Deposit Limits
Maximum deposit: 1.5 months' rent (week-to-week: 2 weeks' rent; month-to-month: 1.5 months').
Statute: N.C. Gen. Stat. § 42-50 to 42-56
Full text: Read the law
Return Deadline & Requirements
Landlord must return the deposit or provide an interim accounting within 30 days. If final repairs can't be determined in 30 days, landlord has up to 60 days with an interim accounting.
Itemized Statement Required: Must provide an itemized accounting of deductions. If using estimates initially, final accounting with actual costs must follow within 60 days.
Move-Out Inspection
No statutory right to pre-move-out inspection.
Allowed & Prohibited Deductions
What Landlords CAN Deduct
- Unpaid rent
- Damages beyond normal wear and tear
- Costs of re-renting if tenant broke the lease
- Court costs for eviction
- Costs of storing tenant's abandoned property
What Landlords CANNOT Deduct
- Normal wear and tear
- Pre-existing damage
Penalties for Violations
Landlord Penalties: Tenant can recover the full deposit amount if landlord fails to account for or return the deposit within the required timeframe.
Where to file: Small Claims Court (up to $10,000)
Interest Requirements
Not required, but landlord must hold deposit in a trust account in a licensed NC bank or savings institution.
How to Get Your North Carolina Security Deposit Back
If your landlord is withholding your deposit wrongfully, here's what to do:
- Document everything at move-out — Take photos and video of the unit's condition. Do a walkthrough if your state allows it.
- Provide your forwarding address in writing — Many states don't start the return clock until you provide this.
- Wait for the deadline to pass — Give your landlord the full 30 days required by law.
- Send a demand letter — If the deadline passes without your deposit, send a formal demand letter citing N.C. Gen. Stat. § 42-50 to 42-56.
- File in court — If the demand letter doesn't work, file in Small Claims Court (up to $10,000). You may recover additional penalties.
Get Your Security Deposit Back
Create a free demand letter for your North Carolina security deposit dispute. Cites NC law automatically.
Create Free Demand LetterFrequently Asked Questions
How long does a North Carolina landlord have to return a security deposit?
30 days for a full return or interim accounting. Up to 60 days if final repair costs aren't yet determined, but an interim accounting must be sent at 30 days.
What is the security deposit limit in North Carolina?
1.5 months' rent for month-to-month tenancies, and 2 weeks' rent for week-to-week tenancies.
Does my NC landlord have to hold my deposit in a special account?
Yes. North Carolina requires landlords to hold security deposits in a trust account at a licensed NC bank or savings institution. They must notify you of the bank name and address within 30 days.
What can I do if my NC landlord won't return my deposit?
Send a demand letter citing N.C. Gen. Stat. § 42-50. If they don't respond, file in small claims court (up to $10,000). You can recover the full deposit if they failed to comply with return requirements.
More Resources: All State Guides | Security Deposit Demand Letter Guide | Demand Letter Templates