North Carolina caps a residential security deposit by tenancy length under N.C. Gen. Stat. § 42-51: two weeks' rent for week-to-week, one and one-half months' rent for month-to-month, and two months' rent for longer terms. The landlord must itemize any damages in writing and refund the balance within 30 days (up to 60 days if the claim isn't yet determined), or forfeit the right to keep any of it.
Under N.C. Gen. Stat. § 42-51(b), a 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." Section 42-52 requires the landlord, within 30 days after termination and delivery of possession, to refund the balance and "in writing shall itemize any damage." If the claim cannot be determined within 30 days, the landlord must give an interim accounting at 30 days and a final accounting within 60 days. Permitted deductions under § 42-51(a) include unpaid rent, utility costs, damage beyond normal wear and tear, re-renting costs, and court costs. Landlords may not deduct for normal wear and tear.
Under N.C. Gen. Stat. § 42-55, a landlord's willful failure to meet the deposit, bond, or notice requirements "shall void the landlord's right to retain any portion of the tenant's security deposit." The tenant may sue to recover the balance plus damages, and a court finding willful noncompliance may award attorney's fees as costs.
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