How Much Security Deposit Can a Landlord Charge in North Carolina?

Audience: renters in North Carolina preparing to apply or sign a lease

In North Carolina, state law places clear limits on how much a landlord can charge for a security deposit. The allowed amount depends on the type and length of the lease, not just the monthly rent.

Here’s how the limits work and what renters should know before paying anything.

Security deposit limits under North Carolina law ⚖️

North Carolina law caps security deposits as follows:

Week-to-week leases: up to 2 weeks’ rent
Month-to-month leases: up to 1.5 months’ rent
Fixed-term leases longer than month-to-month: up to 2 months’ rent

These limits apply statewide and cannot be exceeded, even in competitive markets or higher-end properties.

What counts as a security deposit 🧾

A security deposit generally includes any refundable money held to protect the landlord against loss, such as:

Damage beyond normal wear and tear
Unpaid rent
Lease violations
Excessive cleaning required after move-out

If the money is refundable and tied to protecting the property, it usually counts toward the legal deposit limit.

What usually does not count toward the deposit limit 🚫

These charges are typically separate from the security deposit cap (if properly disclosed):

Application fees
Non-refundable administrative fees
Non-refundable pet fees (if allowed by the lease)
Monthly pet rent

If you’re unsure how fees differ from deposits, reviewing what to know before applying can help avoid surprises:
https://movezen360.com/before-applying-information/

Where the deposit must be held 🔐

North Carolina law requires landlords to safeguard deposits by placing them in:

A trust account at a licensed financial institution, or
A bond filed with the state

This rule exists to protect renters if a landlord mishandles or misuses deposit funds.

When the deposit must be returned ⏱️

After move-out, a landlord must:

Return the deposit within 30 days, or
Provide an interim accounting within 30 days and a final accounting within 60 days

Any deductions must be itemized and tied to actual, documented costs.

Common misunderstandings ❌

“Landlords can charge whatever the market allows.”
Not in North Carolina. Deposit limits are set by statute.

“Pet deposits don’t count.”
If refundable, pet deposits often count toward the total cap.

“Deposits don’t have to be itemized when returned.”
Incorrect. Itemized deductions are required.

“Normal wear and tear can be deducted.”
No. Routine wear from normal use is not deductible.

FAQs ❓

Can a landlord charge first month’s rent and a security deposit?
Yes. Rent and deposits are separate charges.

Can a landlord increase the deposit at lease renewal?
Only if the lease structure changes (for example, switching from month-to-month to a fixed term) and the new amount stays within legal limits.

Is a cleaning fee the same as a security deposit?
Not necessarily. Non-refundable cleaning fees must be clearly disclosed and are treated differently from deposits.

What if I’m asked to pay more than the legal limit?
Pause and ask for clarification. Paying an unlawful deposit can create problems later.

Does this law apply everywhere in North Carolina?
Yes. these limits apply statewide.