How Much Can a Landlord Charge for a Security Deposit
While ideally a landlord would want to charge as much as possible for a security deposit in Fayetteville, North Carolina, in the event the landlord has to use the security deposit for damages, state law does not allow the landlord to exceed a certain amount for the security deposit.
How Much Can a Landlord in North Carolina Charge for a Security Deposit?
How much a landlord can charge for a security deposit in North Carolina is dependent upon the length of the term of the residential lease agreement.
There are three types of leases generally recognized under North Carolina landlord tenant law as they relate to the amount of security deposits.
The three types of leases are week to week; month to month; and greater than month to month.
Each of these lease types will have a different impact on the amount a landlord can charge a tenant for a security deposit in North Carolina.
The maximum amount a landlord can charge for a security deposit applies to the following North Carolina lease terms:
- Week to Week: two weeks rent
- Month to Month: one and one half month’s rent
- Greater than Month to Month: two months rent
These maximum amounts are laid out in the North Carolina Security Deposit Act, § 42-51(b) which states, in relevant part, that:
The security deposit shall not exceed an amount equal to two weeks’ rent if a tenancy is week to week, one and one-half months’ rent if a tenancy is month to month, and two months’ rent for terms greater than month to month. These deposits must be fully accounted for by the landlord as set forth in G.S. 42-52.
One of the most important takeaways, aside from the maximum amount you can charge, is laid out in the last sentence of the statute.
This sentence involves not the maximum amount you can charge for a security deposit in North Carolina, but instead discusses how a landlord in North Carolina must handle the security deposit.
This is a very important point, as most North Carolina landlords handle security deposits incorrectly, and set themselves up for liability.
This topic is too broad to discuss here, but is one of the most important property management topics every landlords should know.
In order to get a more detailed understanding, you can check out our blog on How to Handle Security Deposits in North Carolina below.
The Team at Linchpin Property Management
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As always, information on this website is not intended to constitute legal advice, or the retention of our property management services, and is for general information purposes only.
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