North Carolina Security Deposit Law: Deadlines & Penalties

North Carolina landlords must return a security deposit, with a written itemization of any damage, no later than 30 days after the tenancy ends and the tenant returns possession. Deductions are limited to the uses the statute allows, such as unpaid rent, damage beyond normal wear and tear, unpaid bills that become a lien on the property, and the cost of re-renting after a tenant breaks the lease.

If the landlord can't determine the full amount of the claim within 30 days, they must send an interim accounting within 30 days and a final accounting within 60 days. If the tenant's address is unknown, the landlord must hold the remaining balance for at least six months, so give your forwarding address in writing to avoid delays. Deposits are capped at two weeks' rent for week-to-week tenancies, one and a half months' rent for month-to-month tenancies, and two months' rent for longer terms.

A tenant can sue to recover the deposit balance and any damages caused by the landlord's failure to follow the law. If a court finds the landlord willfully failed to follow the Act's deposit or notice requirements, the landlord can lose the right to keep any part of the deposit, and the court may award reasonable legal fees.