How long does a landlord in North Carolina have to return a security deposit?
The clock runs from termination of the tenancy and delivery of possession of the premises to the landlord; the landlord must itemize any damage in writing and mail or deliver it with the balance no later than 30 days. If the extent of the landlord's claim against the deposit cannot be determined within 30 days, the statute forks: the landlord must give the tenant an interim accounting within 30 days and a final accounting within 60 days after termination of the tenancy and delivery of possession. If the tenant's address is unknown the landlord may apply the deposit after 30 days and must hold the balance for collection by the tenant for at least six months.
In plain terms, the statute says
There is no multiple-damages provision: under § 42-55 a tenant whose deposit is not accounted for and refunded may sue for the accounting and the balance of the deposit plus any damages resulting from the noncompliance, and no finding of bad faith is required for that. A willful failure to comply with the Article's deposit, bond, or notice requirements voids the landlord's right to retain any portion of the deposit, and on a finding of willful noncompliance the court may award attorney's fees, so the enhanced remedy does turn on willfulness.
Who this covers
Section 42-56 limits the whole Tenant Security Deposit Act to persons, firms, or corporations engaged in the business of renting or managing residential dwelling units, EXCLUDING SINGLE ROOMS, on a weekly, monthly, or annual basis. A single-room rental therefore falls outside the Article entirely, and so does a landlord who is not in the business of renting or managing.
Read the law yourself
N.C. Gen. Stat. § 42-52 (remedies at § 42-55; applicability at § 42-56)
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Questions people ask
How long does a landlord in North Carolina have to return a security deposit?
The clock runs from termination of the tenancy and delivery of possession of the premises to the landlord; the landlord must itemize any damage in writing and mail or deliver it with the balance no later than 30 days. If the extent of the landlord's claim against the deposit cannot be determined within 30 days, the statute forks: the landlord must give the tenant an interim accounting within 30 days and a final accounting within 60 days after termination of the tenancy and delivery of possession. If the tenant's address is unknown the landlord may apply the deposit after 30 days and must hold the balance for collection by the tenant for at least six months.
Who does North Carolina's security-deposit law cover?
Section 42-56 limits the whole Tenant Security Deposit Act to persons, firms, or corporations engaged in the business of renting or managing residential dwelling units, EXCLUDING SINGLE ROOMS, on a weekly, monthly, or annual basis. A single-room rental therefore falls outside the Article entirely, and so does a landlord who is not in the business of renting or managing.
What happens if a landlord in North Carolina is late?
There is no multiple-damages provision: under § 42-55 a tenant whose deposit is not accounted for and refunded may sue for the accounting and the balance of the deposit plus any damages resulting from the noncompliance, and no finding of bad faith is required for that. A willful failure to comply with the Article's deposit, bond, or notice requirements voids the landlord's right to retain any portion of the deposit, and on a finding of willful noncompliance the court may award attorney's fees, so the enhanced remedy does turn on willfulness.
Where can I read North Carolina's security-deposit law?
North Carolina's rule is in N.C. Gen. Stat. § 42-52 (remedies at § 42-55; applicability at § 42-56). The link on this page goes to the official text, so you can read the section yourself rather than take our word for it.
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