Security Deposits
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Security Deposits, Late Fees & Evictions
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Landlord must give tenant written notice of the name of the bank that is holding the tenant’s security deposit or the name and address of the insurance company providing a bond to cover the security deposit, if not in a bank in North Carolina. After the tenant moves out for any reason (including eviction), the landlord must give the tenant a written account of any items deducted from the deposit and refund the balance to the tenant. The landlord has thirty (30) days from the time the tenant moves out to give this accounting and refund. A landlord may keep part or all of the security deposit for: Back rent owed to the landlord Costs for repairs of damage beyond normal wear and tear Lost rent and expenses for finding another tenant if ten ant moved before lease ended. Court costs, if evicted.
Under
North Carolina Law
The information contained in this brochure is presented by Northwest Piedmont Council of Governments to inform property owners of their rights under NC Law. The information is from the NC Justice Center. It is not intended to serve as a substitute for legal advice.
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Late Fees A late fee may only be charged after the rent is five days late. The fee may only be $15.00 or 5% of the monthly rent, whichever is greater. For Section 8 units, the fee cannot exceed 5% of the portion of rent the tenant pays. The fee may only be charged once per month. It cannot be increased based on the number of days past the payment date.
Evictions Evicting a tenant requires that the landlord follow the process set out by North Carolina law. If the term of the lease is ending, the landlord does not have to renew the lease. However, there must be a written lease with a specific term, and the landlord must give written notice to the tenant that the lease will not be renewed and ask them to vacate within a reasonable period. If the tenant does not move after being asked to vacate (because the lease has ended or for other cause), a landlord may evict a tenant legally only by getting a court order. The landlord may not evict by changing locks or padlocking, turning off utilities and/or appliances, using threats or any way other than through the court. Grounds for Eviction ◊ Nonpayment of rent ◊ Staying after the lease has ended ◊ Breach of the lease ◊ Certain criminal activities How Evictions Work The landlord must file a legal complaint with the court, stating grounds for the eviction. The complaint must be served on the tenant by the Sheriff’s Office. Attached to the complaint will be a summons stating where and when a court hearing will be—usually within 10 days. Nothing in writing needs to be filed by the tenant.
The landlord or tenant may appeal the hearing decision within 10 days. The tenant may stay in the unit while the case is appealed if the tenant gets a “Stay of Execution” from the court. The tenant must pay rent to the Court if it is due during the appeal process—unless ordered not to pay by the Magistrate. The landlord must not accept rent from the tenant during the eviction proceedings. If the tenant loses final judgment in court, the landlord obtains a writ of possession from the Clerk of Court, which the Sheriff’s Office executes within 7 days. The Sheriff will order the tenant to leave and padlock their belongings inside. The tenant will have ten days to get their belongings. They must contact the landlord and arrange a time during regular business hours (or another time by agreement) to come and remove the property. If the tenant does not remove their belongings within those ten days, the landlord may dispose of the property in any way s/he wishes. A tenant may not be evicted for ◊ Complaining or requesting that the landlord make repairs; ◊ Complaining to the housing inspector, health department or any other government agency about repair needs or unhealthy conditions; ◊ Any honest attempt of the tenant to enforce their rights under the lease or under state or federal law; ◊ Any honest attempt to organize, join or become involved with any group of people who are trying to help tenants. Eviction is a remedy if the tenant has breached the lease. It is the landlord’s responsibility to evict.