US Legal Forms
Legal Resources
Questions & Answers
Landlord Tenant
What should I do with an unclaimed security deposit in North Carolina?

What should I do with an unclaimed security deposit in North Carolina?

Full question:

I lease out a property in North Carolina on a weekly basis. My tenant terminated the lease and moved out of town. I am still in possession of the security deposit since the tenant left without collecting it. What should I do with the security deposit as I do not have any contact or address of the tenant?

Category: Landlord Tenant
Subcategory: Security Deposit
Date: 04/07/2025
State: North Carolina

Answer:

In North Carolina, when a tenant terminates a lease and does not claim their security deposit, the landlord must follow specific procedures. After the lease ends, you are required to refund the security deposit to the tenant. If you cannot contact the tenant or their address is unknown, you may apply the deposit according to N.C. Gen. Stat. § 42-51 after thirty days from the lease termination.

According to N.C. Gen. Stat. § 42-52, you must hold any remaining balance of the security deposit for at least six months for the tenant to claim it. You can use the deposit for the following purposes:

Nonpayment of rent or utility costs.
Damage to the property.
Costs incurred from the tenant's breach of the lease.
Unpaid bills that become a lien due to the tenant's occupancy.
Costs of re-renting the property after a tenant breach.
Removal and storage of the tenant's property after eviction.
Court costs.

Remember, you cannot withhold part of the deposit for normal wear and tear or retain more than your actual damages. You must itemize any deductions and send this information to the tenant within thirty days of the lease termination. If you cannot determine the full extent of your claims within that time, you should provide an interim accounting within thirty days and a final accounting within sixty days.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What is considered lease abandonment?

Lease abandonment occurs when a tenant leaves the rental property before the lease term ends without notifying the landlord and without paying rent. In North Carolina, if a tenant vacates the property and stops paying rent, the landlord may consider the lease abandoned. However, the landlord must follow specific legal procedures to reclaim the property and may need to provide notice to the tenant before taking action.

What happens if you break up and have a lease?

If you break up with someone you share a lease with, both parties remain responsible for the lease obligations unless one party is legally removed from the lease. In North Carolina, landlords typically require both tenants to fulfill the lease terms, including rent payments, until the lease ends or is modified. Communication with the landlord is essential to address any changes in tenancy.

Can I remove myself from a lease after a breakup?

Removing yourself from a lease after a breakup typically requires the landlord's consent. In North Carolina, you may need to negotiate with your landlord to find a replacement tenant or formally terminate the lease. If you leave without the landlord's approval, you may still be liable for rent until the lease expires or is legally terminated.

What happens if landlord does not return security deposit in 30 days in NC?

In North Carolina, if a landlord does not return the security deposit within 30 days after the lease ends, they may be liable for damages. The landlord must provide an itemized list of any deductions taken from the deposit. If they fail to do so, the tenant may have grounds to pursue legal action for the return of the full deposit amount.

What happens if you break up with someone you share a lease with?

Breaking up with a roommate who shares a lease does not automatically release either party from the lease obligations. Both individuals remain responsible for the rent and any damages until the lease is terminated or modified. It's advisable to communicate with the landlord to discuss options for one party to be removed from the lease or to find a replacement tenant.

Is a lease valid without a security deposit?

Yes, a lease can be valid without a security deposit. In North Carolina, while security deposits are common, they are not legally required for a lease to be enforceable. However, landlords often use security deposits to protect against damages or unpaid rent. If a lease does not include a security deposit, the landlord may have limited recourse for recovering losses.