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: $500-1,600

5-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: $200-800

3-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

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Based on North Carolina General Statutes § 42-50 to 42-56 · HUD Handbook 4350.1 · IRS Publication 527

Disclaimer: This page provides general information about North Carolina security deposit laws and is intended for educational purposes only. It is not legal advice. Laws may change, and individual circumstances vary. Consult a licensed attorney for advice specific to your situation.

Last updated: January 2026. Sources: North Carolina General Statutes § 42-50 to 42-56, HUD Handbook 4350.1, IRS Publication 527.