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Tenant Security Deposits ROLL FOLD... MAKE ADJUSTMENTS FOR ROLL FOLD. MAKE ADJUSTMENTS FOR DOT GAIN. extraordinary measures are necessary to clean or the lease, including your obligation to pay rent, owner’s name and address within thirty days of the restore the premises, the landlord may deduct the the landlord or agent may evict you from the transfer. Likewise, if you have paid your security cost of such cleaning from your security deposit. property. The court proceeding is known as deposit to the landlord’s agent and the agent “summary ejectment.” In addition to having you discontinues managing the property during the Questions and Answers on: removed from the property, the landlord or agent term of your lease, the agent must either transfer may recover from you any unpaid rent, late fees, your deposit to the landlord/owner or, with the and, of course, the cost of repairing any physical owner’s permission, transfer your deposit to the TENANT damage which you may have caused to the new manager. In either case, the agent to whom property—but not damage due to ordinary wear you paid your security deposit must notify you SECURITY and tear. In addition, if you leave behind any of of the new location of your deposit and, if your your personal property (furniture, clothing, etc.), amount of damage cannot be determined within deposit is being transferred to the owner, advise DEPOSITS the landlord may also recover from you the cost 30 days, the landlord or agent must send you a the landlord of their responsibilities to you under Q: What will happen to my security deposit of storing your property. If your security deposit written interim accounting of deductions claimed, the Tenant Security Deposit Act (NC Gen. Stat. § 42- if I vacate the property before the end of my lease? will not cover the landlord’s damages for unpaid followed by a final accounting no later than 60 50 et seq.). A: In addition to any physical damage which rent, physical damage to the property, and storage days following the end of the tenancy. So, it is you may have caused to his property, the of your personal property, you will be liable important to give your landlord or agent a full landlord may also deduct from your security for payment of any remaining costs. If a civil forwarding address. If you cannot be located, deposit any actual damages caused by your judgment is entered against you by the court, it the landlord or agent must hold any refund due Scan the code below to access the moving out of the property before the end of could adversely affect your credit rating. for at least six months in their trust account. If Commission Web site from your mobile devices. your lease term; however, they may not charge the landlord or agent fails to refund your deposit you a “termination fee” or impose any other or make the required accounting, you can sue penalty or forfeiture of deposit for your early for recovery of the deposit and reasonable termination and must use their best efforts to fill attorney fees. The failure to make the accounting the vacancy as soon as possible. For example, as required under the Act is a forfeiture of the your rent is $600 per month and you move out landlord’s right to retain any portion of the deposit. of the landlord’s property two months before the end of your lease. If it takes the landlord Q: What will happen to my security deposit if the one month to re-rent the property, $600 may ownership or management of the property that I rent be deducted from your security deposit as lost is transferred to someone else? rent for the period during which the property A: If the landlord who collected your security was vacant. The landlord may also use the deposit transfers ownership of the property to THE NORTH CAROLINA security deposit to recover any reasonable fees Q: Is there a deadline by which the landlord or someone else during the term of your lease, REAL ESTATE COMMISSION or commissions charged by a licensed broker to agent must return my security deposit? they must either refund your security deposit to P.O. Box 17100 • Raleigh, NC 27619-7100 re-rent the property. A: Within 30 days after the termination of your you, or transfer your deposit to the new owner Phone: 919/875-3700 • Website: www.ncrec.gov tenancy, the landlord or agent must send you (after making any allowable deductions) and Q: What will happen to my security deposit if, either a full refund of your deposit or a written notify you in writing of the new owner’s name 00,000 copies of this public document were printed at a cost of $.000 per copy. for some reason, I am unable to pay my rent? itemized accounting of any deductions along with and address. In either case, your deposit must A: If you fail to fulfill your obligations under any remaining refund amount. Where the full be refunded or notice given to you of the new REC 3.24 • 4/1/16 A publication of the North Carolina Real Estate Commission Questions and Answers on: Q & A notify you in writing where your security deposit they may place your deposit in an interest- T E N A N T S E C U R I T Y has been placed (typically, this notification is bearing account only if they have your written D E P O S I T S given in the lease). If your security deposit is permission and the written permission of the Q: How much security deposit can a landlord moved to a different bank or savings and loan owner. If your lease authorizes the agent charge? during your tenancy, you must be notified in to place your security deposit in an interest- Each year, hundreds of thousands of North A: If your agreement with the landlord is to writing of the new location. bearing account, the authorization in the lease Carolinians rent houses, apartments, mobile rent his property on a week-to-week basis, your must be stated in a clear and conspicuous homes, and other dwellings as their residences. deposit may not exceed the equivalent of two manner. The interest may be paid to you, to For the first-time tenant—and some veteran weeks’ rent. If you’re renting on a month-to- the landlord, or to the agent, and depends renters—this can be a confusing and somewhat month basis, your deposit cannot be more than upon your agreement with the landlord. unsettling experience. The more you know The North Carolina Tenant Security Deposit Act 1 1/2 months’ rent. And, if your rental period is about the process of renting residential real (the “Act”) sets out the rights and responsibilities greater than month-to-month, your deposit cannot Q: What will happen to my security deposit at estate, the better you will be able to protect of residential tenants, landlords, and their agents be more than two months’ rent. the end of my lease term? your interests and carry out your responsibilities regarding tenant security deposits. (See NC A: If you stay for the entire lease term and you under your rental agreement. General Statutes Sections 42-50 through 42-56.) Q: Can my landlord charge me a “pet fee”? have paid all rent due, the landlord (or agent) This booklet addresses an important aspect The Act applies to all residential properties except A: Yes. In addition to the security deposit, your Q: Are there any exceptions to the requirement may deduct from your security deposit only of the rental process which generates many single rooms. The Act does not require landlords, landlord may also charge you a non-refundable fee that my security deposit be placed in a trust the actual cost of repairing any damage which questions from tenants—tenant security deposits. or their agents, to collect security deposits, but if you plan to keep a pet in the property or on the account? you have done to the property. You cannot be How much security deposit can I be they usually do in order to assure that they will be grounds. The “pet fee” can be any “reasonable” A: Yes, there is one exception. If the owner is charged for damage caused by “ordinary wear charged? Can my landlord charge me a “pet reimbursed if certain specified losses are caused by amount that the landlord wishes to charge. If managing their own property, or the property is and tear.” What constitutes “ordinary wear fee”? What happens to my security deposit tenants. Landlords also frequently use the services your pet damages the property, the landlord may being managed by an agent who has agreed for and tear” must be determined on a case-by- while I’m a tenant? And what happens to it of real estate agents to help them manage and rent also keep all or a portion of the security deposit the owner to hold the deposits, the owner may case basis. For example, if you are the most once my rental term is over? These are some their properties. These agents must be licensed by as necessary to repair the damage in addition to post a bond to cover the security deposits. In recent tenant in the property, the landlord of the questions that this booklet attempts to the North Carolina Real Estate Commission and, keeping the pet fee. such case, the landlord must: (1) notify you and cannot charge you to replace such items as answer.
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