--- title: What Are Permitted Uses of the Security Deposit by a Landlord or Agent? description: In North Carolina, a landlord or property manager cannot use a security deposit however they want. --- [Skip to content](https://know.movezen360.com/what-are-permitted-uses-of-the-security-deposit-by-a-landlord-or-agent#main-content) [Create a Ticket](https://know.movezen360.com/kb-tickets/new?hsLang=en-us) ![MoveZen, Inc Logo](https://know.movezen360.com/hs-fs/hubfs/MoveZen%20Property%20Management%20Company%20Logo.png?width=130&height=134&name=MoveZen%20Property%20Management%20Company%20Logo.png) - [Home](https://movezen360.com/) - [Customer Service Tickets](https://pages.movezen360.com/customer-central?status=all&view=my_tickets&offset=0) Show submenu for Customer Service Tickets - [Create a Service Request](https://pages.movezen360.com/customer-central/new) - [Service Request History](https://pages.movezen360.com/customer-central?status=all&view=my_tickets&offset=0) - [Knowledge Base](https://know.movezen360.com/) - [Custom Services](https://pages.movezen360.com/custom-services) - Portals Show submenu for Portals - [Help Portal Home](https://pages.movezen360.com/home) - [Resident Maintenance & Finance Portal](https://movezen360.com/tenant-portal-login-center/) - [Owner Property & Finance Portal](https://movezen360.com/rental-owner-portal/) Open main navigation Close main navigation - [Home](https://movezen360.com/) - [Customer Service Tickets](https://pages.movezen360.com/customer-central?status=all&view=my_tickets&offset=0) Show submenu for Customer Service Tickets - [Create a Service Request](https://pages.movezen360.com/customer-central/new) - [Service Request History](https://pages.movezen360.com/customer-central?status=all&view=my_tickets&offset=0) - [Knowledge Base](https://know.movezen360.com/) - [Custom Services](https://pages.movezen360.com/custom-services) - Portals Show submenu for Portals - [Help Portal Home](https://pages.movezen360.com/home) - [Resident Maintenance & Finance Portal](https://movezen360.com/tenant-portal-login-center/) - [Owner Property & Finance Portal](https://movezen360.com/rental-owner-portal/) - [Create a Ticket](https://know.movezen360.com/kb-tickets/new) How can we help you? - There are no suggestions because the search field is empty. 1. [MoveZen Property Management Knowledge Base (rentals)](https://know.movezen360.com/?hsLang=en-us) 2. [Departing Residents](https://know.movezen360.com/departing-residents?hsLang=en-us) 3. [Security Deposit Handling](https://know.movezen360.com/departing-residents?hsLang=en-us#security-deposit-handling) April 27, 2026 # What Are Permitted Uses of the Security Deposit by a Landlord or Agent? ## In North Carolina, a landlord or property manager cannot use a security deposit however they want. North Carolina law strictly limits what a landlord can deduct from your security deposit. Every deduction must be lawful, itemized, and tied to actual costs. ***The single best thing you can do to protect your deposit is follow your move-out checklist completely before you leave!*** For context on how deposits are handled at move-out, see: [https://know.movezen360.com/what-will-happen-to-my-security-deposit-at-the-end-of-my-lease-term](https://know.movezen360.com/what-will-happen-to-my-security-deposit-at-the-end-of-my-lease-term?hsLang=en-us)   --- #### The Most Important Thing You Can Do Prior to Moving Out Most deposit disputes come down to condition and documentation. Tenants who follow their move-out checklist, clean thoroughly, and return the property in the condition it was provided (minus normal wear and tear) rarely lose significant portions of their deposit. Tenants who don't are far more likely to face deductions — many of which could have been avoided. Before you leave: - Complete every item on your move-out checklist - Clean the unit to move-in-level condition - Repair any damage you caused, if permitted under your lease - Return all keys, fobs, and access devices - Provide your forwarding address in writing --- #### What NC Law Allows a Landlord to Deduct Under [G.S. § 42-51](https://www.ncleg.net/enactedlegislation/statutes/html/bysection/chapter_42/gs_42-51.html), a landlord may only apply your security deposit toward the following: 1. **Unpaid rent, water, sewer, or electric charges** you owed at the end of the tenancy 2. **Damage to the premises** beyond normal wear and tear, including damage to smoke or carbon monoxide alarms 3. **Losses from early departure** if you vacated before your lease ended without a legally protected reason 4. **Unpaid bills** that became or could become a lien against the property during your occupancy 5. **Re-renting costs** if you breached the lease and the unit had to be re-rented, including broker fees 6. **Removal and storage of abandoned property** after a court-ordered ejectment 7. **Court costs** connected to the tenancy 8. **Fees authorized under G.S. § 42-46**, including lawful late fees and certain legal proceeding fees --- #### What "Damage" Means vs. Normal Wear and Tear This is where most disputes happen. Normal wear and tear is the natural aging of a home from ordinary use — it is not your financial responsibility. **Normal wear and tear (not deductible) includes (but is not limited to):** - Minor scuffs on walls - Small nail holes from pictures - Carpet worn from normal foot traffic - Faded or lightly marked paint - Loose handles or hinges from age **Damage beyond normal wear and tear (potentially deductible) includes (but is not limited to):** - Large holes in walls - Broken doors, fixtures, or hardware - Pet damage - Burns, deep stains, or gouges - Broken or missing appliances caused by misuse   --- #### What Security Deposits Cannot Be Used For Landlords and agents may not use a security deposit for: - Normal wear and tear - Routine maintenance or upkeep - Upgrades, renovations, or improvements - Pre-existing damage documented at move-in --- #### Timing and Documentation Requirements Even when deductions are allowed, the landlord must provide a written, itemized accounting, deposit return or interim accounting must occur within 30 days, and final accounting must be completed within 60 days. More on timelines here: [https://know.movezen360.com/is-there-a-deadline-by-which-the-landlord-or-agent-must-return-a-security-deposit](https://know.movezen360.com/is-there-a-deadline-by-which-the-landlord-or-agent-must-return-a-security-deposit?hsLang=en-us)   --- #### How Early Move-Out or Unpaid Rent Affects Deductions If you vacate early or owe rent, unpaid rent may be deducted, lease termination fees may apply if lawful and disclosed, and the landlord must still mitigate damages by attempting to re-rent. Related reading: - [https://know.movezen360.com/what-will-happen-to-my-security-deposit-if-i-vacate-the-property-before-the-end-of-my-lease](https://movezen360.com/nc-security-deposit-early-vacate) - [https://know.movezen360.com/what-will-happen-to-my-security-deposit-if-for-some-reason-i-am-unable-to-pay-my-rent](https://know.movezen360.com/what-will-happen-to-my-security-deposit-if-for-some-reason-i-am-unable-to-pay-my-rent?hsLang=en-us)   --- #### Frequently Asked Questions **Can a landlord charge for repainting?** Only if repainting is required due to damage beyond normal wear. **Can a landlord deduct for carpet replacement?** Only if damage exceeds normal wear and tear and the carpet hasn't reached the end of its useful life. **Can deductions exceed my deposit?** Yes, but only for lawful charges. You may still owe additional amounts. **Can estimates be used instead of actual costs?** Final deductions should reflect actual or reasonably certain costs, and a vendor estimate would fall under a reasonably certain cost. --- #### Related knowledge base articles These often pair well with deposit-use questions: - **How much security deposit can a landlord charge in NC?** https://know.movezen360.com/how-much-security-deposit-can-a-landlord-charge-in-north-carolina - **What happens to my security deposit while I’m a resident?** [https://know.movezen360.com/what-happens-to-my-security-deposit-while-im-a-resident](https://know.movezen360.com/what-happens-to-my-security-deposit-while-im-a-resident?hsLang=en-us) - **Is there a deadline to return a security deposit in NC?** https://know.movezen360.com/is-there-a-deadline-by-which-the-landlord-or-agent-must-return-a-security-deposit - [General](https://know.movezen360.com/general?hsLang=en-us#main-content) - [Portals](https://know.movezen360.com/general?hsLang=en-us#portals) - 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