Can your NC landlord withhold a security deposit without cause? What the law says
If you rent your apartment or home in North Carolina, you likely had to pay a security deposit before moving in.
This amount is typically equivalent to one month’s rent. For some people, it can be a significant amount of money, so receiving the deposit back when you move out is crucial for renters.
Here’s what to know about security deposits and what rights a renter has under state and local laws.
What does North Carolina law say about security deposits?
North Carolina law requires that security deposits be placed in a trust account, held separate from other funds. Landlords are also expected to provide the tenant with a bond for any deposits and notify the tenant of the name and address of the bond where the deposit is held.
Landlords are then allowed to retain a portion of the security deposit to cover damages or other expenses incurred after the tenant moves out.
State law gives a few examples of when they can do so:
*Nonpayment of rent or costs
*Damages to the premises
*Damages as a result of nonfulfillment of the rental period
*Unpaid bills that have become a lien on the premises
*Costs of re-renting the premises after a breach by the tenant
*Costs of removal and storage of the tenant’s property after summary ejectment
What happens if a landlord withholds some or all of my security deposit?
You are entitled to a refund of the security deposit or any balance left after deducting legitimate charges, according to Legal Aid of North Carolina.
Landlords have 30 days from the end date of the lease to return the tenant’s security deposit, according to the online property website Door Loop. If the landlord wants to deduct damages from the security deposit, they must include a written, itemized list of these deductions and send it via first-class mail or in person.
“Landlords who, for any reason, fail to return the security deposit within the specified time frame risk getting sued by their tenant,” Door Loop explains. “Moreover, they will forfeit all rights to holding any amount of the security deposit, and they could be required to pay for the deposit, any damages, and attorney fees.
Helpful resources for renters
If you are looking to report code violations in Charlotte, you can call 311 or 704-336-7600. Tenants who believe minimum housing code violations exist should call 311.
More information can be found on the city of Charlotte’s website. In Raleigh, a code enforcement request form can be found online. Or call 919-996-2444 to report any suspected code violation.
Complaints can also be filed with the North Carolina Attorney General’s office. A general consumer complaint form is the best place to start. The form can be found online.
This story was originally published October 17, 2025 at 8:00 AM with the headline "Can your NC landlord withhold a security deposit without cause? What the law says."