State Law Guide · Updated January 2026
North Carolina Security Deposit Laws
Under North Carolina General Statutes § 42-50 to 42-56, North Carolina landlords must return security deposits within 30 days of a tenant moving out. Landlords who wrongfully withhold deposits face penalties of up to Actual damages plus reasonable attorney fees.
Quick Answer
In North Carolina, landlords have 30 days to return your security deposit after you move out and provide a forwarding address. The maximum deposit is 2 months' rent (week-to-week: 2 weeks; month-to-month: 1.5 months). If your landlord wrongfully withholds your deposit, you can sue in Small Claims Court (up to $10,000) and may recover Actual damages plus reasonable attorney fees under North Carolina General Statutes § 42-50 to 42-56. Landlords must provide an itemized statement of deductions.
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What North Carolina Law Requires
Return Deadline
Landlords have exactly 30 days to return your deposit after you move out. If they make deductions, they must provide an itemized statement explaining each charge with documentation.
Penalties for Violations
Landlords who wrongfully withhold deposits face Actual damages plus reasonable attorney fees. You can file in small claims court for amounts up to $10,000without needing an attorney.
Interest Requirements
No interest required, but trust account mandatory
Common Deductions Landlords Make
Federal guidelines from HUD and the IRS establish "useful life" standards that limit what landlords can charge. Many common deductions are partially or fully invalid under these guidelines.
Carpet Replacement
Typical: $500-1,6005-year useful life per HUD MAP Guide Appendix 5C. Charges may be reduced or invalid based on how long you lived there.
Interior Paint
Typical: $200-8003-year useful life per HUD Handbook 4350.1. Charges may be reduced or invalid based on how long you lived there.
Get a Demand Letter That Cites These Laws
Our tool analyzes your landlord's deductions against North Carolina General Statutes § 42-50 to 42-56 and federal HUD guidelines, then generates a formal demand letter you can send immediately.
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HUD/IRS Citations
Useful life depreciation built in
$19 · Avg North Carolina deposit: $1,350 · Potential 71x return
Frequently Asked Questions
How long does a North Carolina landlord have to return my deposit?
NC landlords have 30 days to return your deposit. They must provide an itemized statement of deductions.
What is the deposit limit in North Carolina?
2 months' rent for year leases, 1.5 months for month-to-month, 2 weeks for week-to-week.
Must my NC landlord use a trust account?
Yes. North Carolina requires deposits be held in a trust account with a licensed NC financial institution.
City-Specific Rules
Some North Carolina cities have additional tenant protections:
- Charlotte: Additional tenant resources through city housing programs.
- Raleigh: Growing market with tenant advocacy organizations.
Official Resources
- North Carolina Attorney General Consumer Protection(Government)
- Legal Aid of North Carolina(Legal Aid)
Compare Other States
See how North Carolina's security deposit laws compare to nearby states:
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Based on North Carolina General Statutes § 42-50 to 42-56 · HUD Handbook 4350.1 · IRS Publication 527