North Carolina security deposit account for landlords
Easily collect and manage deposits for every property with dedicated security deposit accounts.
Why use a security deposit account in {{ state }}
Security deposit funds are instantly separated, making move-in, move-out, and returns completely clear.
Benefits for property
owners
Repair and maintenance
Covers property damage such as paint, carpet, or floor damage, including costs caused by pets.
Fund separation
Meet state requirements for holding deposits in a dedicated tenant security deposit account.
Streamlined returns
Simplifies refunding tenants while accounting for deductions like cleaning or unpaid utilities.
Benefits for tenants
Fair protection
Funds are protected from misuse, covering only actual repair costs like cleaning, carpet replacement, or floor damage.
Transparency on deductions
Tenants can clearly see allowable charges, protecting against unfair claims on normal wear and tear.
Savings potential
Deposits may be held in a tenant security deposit account or rental deposit account that earns security deposit interest, helping tenants recover more than they put in.
Baselane accounts cannot hold security deposits in states requiring escrow or state-based accounts, but can be used to collect, track, and securely transfer deposits to compliant external accounts.
{{ state }} security deposit account
Each tenant's security deposit in North Carolina must be held in a trust account at a licensed and insured depository institution. Inform the tenant of the location of this security deposit bank account in North Carolina within 30 days of the start of the lease.
{{ state }} security deposit
limits
The maximum security deposit North Carolina landlords can charge depends on the lease term:
- Week-to-week: Up to 2 weeks' rent
- Month-to-month: Up to 1.5 months' rent
- Annual lease: Up to 2 months' rent
These limits are in line with the national average security deposit.
{{ state }} security deposit interest
State law security deposit rules mandate paying interest on security deposits in North Carolina only when a real estate agent is managing your property and has written permission from you and your tenants. Earned interest can be paid to any of the three parties (property manager, you, or the tenant), as per the agreement. The security deposit interest rate is often the same as the rate the bank pays you on deposits.
Go beyond standard security deposit accounts
Collect, return, and track deposits by tenant and
property, even when funds are held in external accounts.
{{ state }} security deposit accounts
Keep every deposit organized and accounted for with secure transfers to [State] security deposit accounts.
Unlimited accounts for all entities
Manage deposits for all entities under one login — LLCs, corporations, partnerships, and individuals.
Free online payments
Collect rent and deposits online for free and easily return deposits via ACH, wire, or check.
Automated bookkeeping
Track and tag payments to the right tenant and property — automatically.
Essentials for every door
Everything you need for every part of the rental process.
Lease creation and e-sign
Upload or create and e-sign state-specific leases online.
Free tenant screening
Screen tenants online for free — instantly verify credit, background, evictions, ID, and income.
Property-specific accounts
Open unlimited checking and savings accounts to easily separate funds for all your properties with no monthly maintenance fees.
{{ state }} security deposit rules
Based on the lease duration:
- Week-to-week: 2 weeks’ rent
- Month-to-month: 1.5 months' rent
- Annual: 2 months' rent
Yes, when a real estate agent manages the property and has the landlord’s and tenant’s written permission.
Must be kept in a trust account and maintained in a licensed and insured depository institution authorized in North Carolina. Within 30 days of the lease starting, inform the tenant where the security deposit account is located.
Unpaid rent or utilities, major house repairs, lease violations, and cleaning costs.
30 days (60 days, if the full amount of damage can’t be determined within 30 days)
Additional resources
ARTICLE
How to collect security deposits
FAQs
How much security deposit can a landlord charge in North Carolina?
The North Carolina security deposit limit depends on the lease length: 2 weeks' rent (week-to-week), 1.5 months' rent (month-to-month), or 2 months' rent (longer than month-to-month). Landlords can also charge first and last month's rent plus the security deposit.
Is interest required on North Carolina landlord security deposits?
North Carolina security deposit interest rules only apply if a real estate agent manages the property and has both the landlord's and tenant's written consent. Interest earned on landlord tenant security deposit bank account in North Carolina can go to the agent, landlord, or tenant, based on the agreement.
How should I issue a security deposit receipt to tenants in North Carolina?
Give tenants a written receipt for the deposit within 30 days of the lease starting date. Include the deposit amount, the security deposit bank account name and location, and the account number. If you or your agent moves the deposit to a new bank, notify the tenant of the new location.
How many days to return the security deposit in North Carolina?
When the tenancy ends, you have 30 days to return the tenant's security deposit in North Carolina either in full or provide a written, detailed list of deductions. If you need more time to assess the damages, you can extend this duration to 60 days.
What can a landlord deduct from a security deposit in North Carolina?
The landlord's rights security deposit allows you to deduct unpaid rent, late fees, and damage to the property (house rental, apartment, or condo) beyond normal wear and tear (such as floor damage or broken equipment). If you make unlawful deductions, you may be required to pay double damages.
Can a security deposit be used for unpaid rent in North Carolina?
Yes, funds from a security deposit escrow account in North Carolina can be used to recover unpaid rent or any amount the tenant owes at the end of tenancy.
Can a landlord keep a security deposit for breaking a lease in North Carolina?
Yes, if a tenant ends their lease early, the landlord's security deposit in North Carolina can be used to cover actual costs, such as the rent lost during the vacancy until a new tenant is found. You cannot charge a separate "termination fee" and must actively try to fill the vacancy as quickly as possible.
