Security Deposit Handling and Normal Wear & Tear
This article provides guidance on how security deposits should be handled in North Carolina and South Carolina and how to distinguish normal wear and tear from tenant-caused damage.
Security Deposit Handling & Timelines:
North Carolina
Security deposit handling is governed by North Carolina General Statutes § 42-51 and § 42-52. These statutes set out:
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What deductions are permissible
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Required timelines for accounting and refunds
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Standard timeline: Final accounting and refund due within 30 days of termination and delivery of possession.
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Extended timeline: If full damages are not yet known, an interim accounting is due within 30 days and a final accounting/refund due no later than 60 days.
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Penalties for noncompliance
South Carolina
Security deposit handling is governed by South Carolina Code § 27-40-410, which similarly outlines:
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Permissible deductions
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Required return timeline (30 days after tenancy/possession/demand)
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Penalty exposure for late or improper handling
General Definition of Normal Wear and Tear
Normal wear and tear refers to deterioration resulting from ordinary use of the premises over time. It does not include damage caused by:
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Negligence
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Abuse
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Misuse by tenants, occupants, or guests
Repairing items with deterioration from normal wear and tear is the owner’s responsibility and cannot be deducted from the security deposit.
Examples of Normal Wear and Tear
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Lightly scuffed walls
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Carpet worn from regular foot traffic
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Loose door handles due to age
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Minor appliance wear
Examples of Tenant-Caused Damage
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Large holes or gouges in walls
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Torn, stained, or burned carpet
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Broken fixtures, windows, or cabinetry
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Pet damage (odors, urine stains beyond ordinary cleaning)
Each condition must be evaluated based on cause and severity.
The North Carolina Association of Realtors has created a helpful form that you can review here!