We watched a property owner who was a day late on refunding the deposit receive a judgment for its full amount against them in a court case they had originally filed. It is a very serious issue.
How to Deliver the Deposit and Itemization
How you ensure delivery can vary depending on your lease, but a failsafe method covers all three of the following:
- Any physical delivery service that includes confirmation, sent to either a forwarding address if provided (you should ask for one in advance), or the property address if that request was ignored
- Email a copy
- Text a copy
Keep all confirmations and a log of your actions.
North Carolina Law
§ 42-52. Property Owner's Obligations.
Upon termination of the tenancy, money held as security may be applied as permitted in G.S. 42-51 or, if not so applied, shall be refunded to the resident. In either case the property owner in writing shall itemize any damage and mail or deliver same to the resident, together with the balance of the security deposit, no later than 30 days after termination of the tenancy and delivery of possession. If the extent of the claim cannot be determined within 30 days, the property owner shall provide an interim accounting no later than 30 days after termination and a final accounting within 60 days. If the resident's address is unknown the property owner shall apply the deposit after 30 days and hold the balance for collection by the resident for at least six months. The property owner may not withhold amounts for normal wear and tear nor retain an amount exceeding actual damages.
§ 42-55. Remedies.
If the property owner fails to account for and refund the balance of the security deposit as required, the resident may institute a civil action to recover the balance. The willful failure of a property owner to comply with the deposit, bond, or notice requirements of this Article shall void the property owner's right to retain any portion of the security deposit.
