SECURITY DEPOSIT DEMAND LETTER
STATE OF NORTH CAROLINA
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND FIRST-CLASS MAIL
[DATE]
[LANDLORD/PROPERTY MANAGER NAME]
[LANDLORD/PROPERTY MANAGER ADDRESS]
[CITY, STATE ZIP]
Re: DEMAND FOR RETURN OF SECURITY DEPOSIT
Former Tenant: [TENANT FULL NAME]
Rental Property Address: [RENTAL ADDRESS]
Lease Start Date: [DATE]
Move-Out Date: [DATE]
Security Deposit Amount: $[AMOUNT]
Dear [LANDLORD/PROPERTY MANAGER NAME]:
This law firm represents [TENANT FULL NAME] ("Tenant" or "Client") regarding your failure to return the security deposit for the above-referenced rental property in accordance with North Carolina law. This letter constitutes formal demand for the immediate return of our Client's security deposit, plus all applicable damages and attorney's fees.
I. NORTH CAROLINA LEGAL FRAMEWORK
A. Governing Law
Security deposits in North Carolina are governed by the North Carolina Tenant Security Deposit Act, N.C. Gen. Stat. Section 42-50 et seq.
B. Security Deposit Limits
Under N.C. Gen. Stat. Section 42-51, security deposit limits are based on the tenancy term:
- Week-to-week tenancy: Maximum two weeks' rent
- Month-to-month tenancy: Maximum one and one-half months' rent
- Terms longer than month-to-month: Maximum two months' rent
If you collected a deposit exceeding these amounts, you have violated North Carolina law.
C. Return Deadline
Pursuant to N.C. Gen. Stat. Section 42-52, a landlord must return the security deposit within thirty (30) days after:
1. Termination of the tenancy; AND
2. Delivery of possession by the tenant
The deposit must be returned with an itemized statement accounting for any amounts withheld.
D. Trust Account Requirement
Under N.C. Gen. Stat. Section 42-50, landlords must deposit security deposits in a trust account with a licensed and insured bank or savings institution in North Carolina, or furnish a bond from an insurance company licensed in North Carolina.
E. Permissible Deductions
Under N.C. Gen. Stat. Section 42-51, a landlord may retain from the security deposit only amounts necessary for:
- Nonpayment of rent
- Damage to the premises (itemized with actual or estimated cost)
- Nonfulfillment of the rental period
- Unpaid bills for utilities or services that landlord is obligated to pay
- Costs of re-renting after breach by tenant
- Costs of removal and storage of tenant's property after eviction
- Court costs and reasonable attorney's fees connected with termination
F. Prohibited Deductions
The landlord may NOT deduct for:
- Normal wear and tear
- Pre-existing conditions documented at move-in
- Routine maintenance between tenancies
II. FACTUAL BACKGROUND
A. Tenancy Information
| Item | Details |
|---|---|
| Tenant Name(s) | [FULL NAME(S) OF ALL TENANTS] |
| Property Address | [COMPLETE ADDRESS] |
| Lease Commencement | [DATE] |
| Lease Expiration/Move-Out | [DATE] |
| Monthly Rent | $[AMOUNT] |
| Security Deposit Paid | $[AMOUNT] |
| Date Deposit Paid | [DATE] |
| Pet Deposit (if applicable) | $[AMOUNT] |
| Total Deposits Paid | $[TOTAL] |
B. Move-Out Circumstances
Notice Provided:
- Date Notice Given: [DATE]
- Notice Period: [NUMBER] days
- Method of Delivery: [ ] Hand-delivered [ ] Certified mail [ ] Email
Move-Out Details:
- Date Keys Returned: [DATE]
- Forwarding Address Provided: [ ] Yes [ ] No
- Date Forwarding Address Provided: [DATE]
- Move-Out Inspection: [ ] Requested [ ] Conducted [ ] Refused by Landlord [ ] Not offered
C. Condition of Premises at Move-Out
Our Client left the premises in the following condition:
[ ] Clean and in good repair - The premises were left in substantially the same condition as when our Client took possession, reasonable wear and tear excepted.
[ ] Professionally cleaned - Our Client hired [CLEANING COMPANY NAME] to professionally clean the premises on [DATE].
[ ] All personal property removed - All of our Client's personal belongings were removed from the premises.
[ ] No damage beyond normal wear and tear - Any changes to the premises were the result of normal, expected use during the tenancy.
[ ] Move-in/Move-out photos - Our Client has photographic documentation of the condition of the premises at both move-in and move-out.
III. LANDLORD'S VIOLATIONS
You have violated North Carolina law in the following ways:
[ ] Failure to Return Deposit: You have failed to return any portion of the security deposit within the statutory 30-day period required under N.C. Gen. Stat. Section 42-52.
[ ] Failure to Provide Itemization: You have failed to provide a written, itemized statement of deductions within the statutory period.
[ ] Excessive Security Deposit: You collected a security deposit exceeding the statutory limit in violation of N.C. Gen. Stat. Section 42-51.
[ ] Failure to Use Trust Account: You failed to deposit the security deposit in a trust account as required by N.C. Gen. Stat. Section 42-50.
[ ] Improper Deductions: You have made deductions that are not permitted by law, including:
- [ ] Deductions for normal wear and tear
- [ ] Deductions for pre-existing conditions
- [ ] Deductions exceeding actual cost of repairs
- [ ] Other improper deductions: [SPECIFY]
[ ] Bad Faith Retention: You have retained the deposit in bad faith, as evidenced by: [DESCRIBE EVIDENCE OF BAD FAITH]
IV. NORMAL WEAR AND TEAR
North Carolina law distinguishes between "damage" for which a tenant may be charged and "normal wear and tear" for which a tenant may not be charged. Normal wear and tear includes deterioration that results from the intended use of the premises and ordinary operation of natural forces over time.
The following items, if deducted, constitute normal wear and tear and are NOT permissible deductions:
[ ] Minor scuff marks on walls from furniture
[ ] Small nail holes from hanging pictures
[ ] Worn carpet in traffic areas
[ ] Faded paint or wallpaper
[ ] Minor scratches on hardwood floors
[ ] Worn finish on bathroom fixtures
[ ] Slightly dirty mini-blinds
[ ] Dust or minor dirt requiring standard turnover cleaning
[ ] Worn door handles or locks
[ ] Other: [SPECIFY]
V. DAMAGES AND REMEDIES
A. Return of Security Deposit
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Pet Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Total Deposits Due | $[AMOUNT] |
B. Statutory Remedies
Under N.C. Gen. Stat. Section 42-55, if a landlord willfully fails to comply with the security deposit requirements:
- The tenant may recover the full amount of the deposit
- The tenant may recover reasonable attorney's fees
C. Attorney's Fees and Costs
Under N.C. Gen. Stat. Section 42-55, our Client is entitled to recover reasonable attorney's fees for willful noncompliance with the security deposit statute.
D. Total Demand
| Item | Amount |
|---|---|
| Security Deposit | $[AMOUNT] |
| Other Deposits | $[AMOUNT] |
| Attorney's Fees to Date | $[AMOUNT] |
| TOTAL DEMAND | $[AMOUNT] |
VI. EVIDENCE IN OUR POSSESSION
Our Client has preserved the following evidence to support this claim:
[ ] Original lease agreement
[ ] Receipt or cancelled check for security deposit payment
[ ] Move-in inspection report/checklist
[ ] Move-out inspection report/checklist (if conducted)
[ ] Photographs of premises at move-in (dated)
[ ] Photographs of premises at move-out (dated)
[ ] Video walkthrough at move-out
[ ] Copy of written notice to vacate
[ ] Proof of delivery of notice and forwarding address
[ ] Receipts for professional cleaning
[ ] Correspondence with landlord regarding deposit
[ ] Landlord's itemized statement (if provided)
[ ] Witness statements regarding condition of premises
[ ] Utility final bills showing service through move-out date
[ ] Other: [SPECIFY]
VII. DEMAND
We hereby demand that you take the following actions within fourteen (14) days of the date of this letter:
-
Return of Deposit: Pay to our Client the full amount of the security deposit: $[AMOUNT]
-
Total Payment: The total amount due is $[TOTAL AMOUNT]
Payment should be made by certified check or money order, payable to [TENANT NAME], and sent to:
[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]
Reference: [TENANT NAME] Security Deposit
VIII. CONSEQUENCES OF NON-COMPLIANCE
If you fail to comply with this demand within the time specified, we are authorized and prepared to:
-
File Suit: Commence legal action in North Carolina Small Claims Court (for claims up to $10,000) or District Court for return of the deposit, damages, attorney's fees, and costs.
-
Seek Attorney's Fees: Request the court award reasonable attorney's fees pursuant to N.C. Gen. Stat. Section 42-55.
-
Report Violations: Report your conduct to:
- North Carolina Attorney General - Consumer Protection Division
- North Carolina Real Estate Commission
- Local Housing Authority
- Better Business Bureau -
Judgment Enforcement: Upon obtaining judgment, pursue all legal means of collection, including garnishment, levy, and lien on property.
IX. RESPONSE REQUESTED
Please respond to this demand in writing within fourteen (14) days. Your response should include:
- Your position on the amount owed to our Client
- Any documentation supporting claimed deductions
- Payment or a good-faith settlement offer
If we do not receive a satisfactory response, we will file suit without further notice.
X. RESERVATION OF RIGHTS
This letter is written without prejudice to any and all rights and remedies available to our Client under applicable law, all of which are expressly reserved. Our Client does not waive any claims, defenses, or rights by sending this letter or by any subsequent negotiations.
Respectfully submitted,
[LAW FIRM NAME]
By: _________________________________
[ATTORNEY NAME]
[NORTH CAROLINA BAR NUMBER]
[ADDRESS]
[CITY, STATE ZIP]
[TELEPHONE]
[EMAIL]
Attorneys for [TENANT FULL NAME]
ENCLOSURES:
[ ] Copy of lease agreement
[ ] Copy of security deposit receipt
[ ] Move-in/move-out photographs
[ ] Copy of notice to vacate
[ ] Copy of forwarding address notification
[ ] Copy of landlord's itemization (if any)
[ ] Cleaning receipts
[ ] Authorization to represent
cc: [TENANT NAME]
[PROPERTY MANAGEMENT COMPANY, if applicable]
[PROPERTY OWNER, if different from addressee]
[CLIENT FILE]
NORTH CAROLINA SECURITY DEPOSIT QUICK REFERENCE
| Element | North Carolina Requirement |
|---|---|
| Governing Statute | N.C. Gen. Stat. Section 42-50 et seq. |
| Deposit Limit | 2 weeks (weekly); 1.5 months (monthly); 2 months (longer) |
| Return Deadline | 30 days |
| Itemization Required | Yes |
| Receipts Required | No |
| Interest Required | No |
| Trust Account Required | Yes |
| Penalty for Violation | Deposit due + attorney's fees (willful) |
| Attorney's Fees | Yes - N.C. Gen. Stat. Section 42-55 |
| Small Claims Limit | $10,000 |
NORTH CAROLINA-SPECIFIC PRACTICE NOTES
[ ] Trust Account Requirement: Verify whether landlord properly deposited funds in a trust account or obtained a bond as required by N.C. Gen. Stat. Section 42-50.
[ ] Pet Deposits: North Carolina allows nonrefundable pet deposits in addition to the security deposit, subject to the same limitations.
[ ] Itemized Statement: The landlord must provide an itemized statement with actual or estimated costs for each deduction within 30 days.
[ ] Interim Accounting: For deposits held more than 6 months, tenant may request written itemization of lawful deductions during the tenancy under N.C. Gen. Stat. Section 42-52(b).
[ ] Willful Noncompliance: Attorney's fees are only available if the landlord's noncompliance was willful. Document evidence of intent or bad faith.
[ ] Small Claims Court: For claims up to $10,000, file in North Carolina Small Claims Court. Landlords who are not natural persons must be represented by an attorney.
[ ] Transfer of Property: If property is sold, the security deposit obligation transfers to the new owner and the former landlord must notify the tenant in writing.
This template is for informational purposes only and does not constitute legal advice. Security deposit laws may vary by locality. Consult a licensed North Carolina attorney before use.