Like many states, NC has a law that bans landlords from charging 3 months of rent or more for a security deposit.
GREENSBORO, N.C. — How much a landlord can charge for a security deposit is changing around the nation. As of July 1, 2024,, California and Georgia have set limits on how much a landlord can charge a renter for a security deposit. These two states, now join about half the states in our nation that have some cap on security deposits. Some states allow only one month, some two, and others no more than three months rent as a security deposit.
North Carolina is on this map. According to the NC Real Estate Commission:
If you're renting on a month-to-month basis, your deposit cannot be more than 1 1/2 months' rent. And, if your rental period is greater than month-to-month, your deposit cannot be more than two months' rent.
The security deposit cap certainly helps the renter, but NC is among many other states that don't allow for rent control.
"In NC there are no rent controls, there was a bill passed by our General Assembly in 1987 that says landlords are allowed to control the amount they offer to their residents," said Hugh Holston, CEO of the Greensboro Housing Coalition.
Since COVID, property prices have increased. Holston says when a lease is up, a landlord can charge whatever he wants to renew it.
"There are lots of residents who have a three bedroom and the property owner isn't renewing their lease because the owner wants to make more money. The housing crisis is real," said Holston.
Some states allow cities and counties to have rent controls even if the state doesn't control it, but North Carolina is not one of them. To change that, state lawmakers would have to change the law.
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