Understanding your security deposit in North Carolina

Security deposits in North Carolina are governed by the Tenant Security Deposit Act, which sets out how a deposit is held, what it can be used for, and when it is accounted for. Here is the shape of it, and how to document a move-in so everyone works from the same record.

This is general information about how deposits usually work, not legal advice about your tenancy. Your lease sets out the specifics for your home.

How much can be charged

The Act caps the deposit based on the lease term. For a month-to-month tenancy the maximum is one and a half months' rent; for a term longer than month to month, it is two months' rent. A pet fee may be charged in addition to the deposit.

Where it has to be held

Generally, the deposit must be held in a qualifying trust account or secured by an appropriate bond. The landlord or agent must provide the required notice about where the deposit is held or who provides the bond, within the period the statute sets.

What it can be used for

The Act lists the permitted purposes. In substance: unpaid rent, damage beyond ordinary wear and tear, unpaid bills that become a lien on the property, the cost of re-renting after a tenant breaches, the cost of removing and storing property after a lawful eviction, and court costs.

What it cannot be used for is ordinary wear and tear. Faded paint after three years is wear. A hole in the wall is damage. Worn carpet in a traffic path is wear. A stain that goes through to the pad is damage.

When the deposit is accounted for

The deposit is accounted for within 30 days of the end of the tenancy. If the final amount of a deduction genuinely cannot be determined in that window, an interim accounting is sent within 30 days and the final one within 60.

What to do at move-in

Photograph everything, on the day, before you put anything in the house. Every room, every floor, every wall, the inside of the appliances, and close-ups of anything already marked or damaged. Timestamped photographs are worth more than any written list.

If there is a move-in walkthrough, do it together and get a copy of what was recorded. We do this at every move-in on the homes we manage and give the tenant the signed condition report, because it protects both sides.

What to do at move-out

Clean properly, take the same photographs from the same angles, and give a forwarding address in writing. Without one, the notification position changes and you make it easy for the deposit to end up somewhere other than with you.

If you have a question about a deduction

Ask us. If Minmosa manages your home, contact us and we will walk through the itemized accounting with you — questions are almost always quickest to settle directly.

If getting the deposit back matters because money is tight right now, our rent and housing assistance page lists Durham programs that may help with rent, utilities or an eviction filing.