Security Deposits
Before a tenant moves in, Priority Property Group collects a security deposit equal to 1 to 2 times the monthly rent. This deposit serves as protection for the property owner against damages exceeding normal wear and tear, as well as unpaid rent balances or other fees.
The deposit is securely held in our Trust Account throughout the lease term. In accordance with NC law, security deposits must be kept in a designated trust account separate from personal or business funds.
Prior to a tenant moving in, we complete a thorough move-in inspection with extensive photo documentation to establish the property’s condition. This report is crucial for ensuring tenants maintain the property appropriately during their tenancy.
We also conduct routine inspections throughout the lease term to proactively identify and address potential issues. By catching concerns early, we can often resolve them while they are still minor, preventing them from escalating into larger, more costly problems. This approach helps protect the condition of your property and ensures a better experience for both you and your tenants.
When the tenant moves out, we conduct a move-out inspection to compare the property’s condition to the move-in report. If damages beyond normal wear and tear are found or if rent is unpaid, those costs will be deducted from the security deposit. Any remaining balance will be returned to the tenant within 30 days of their move-out, as required by North Carolina law.
It is also clearly stated in our lease agreement that the security deposit cannot be used as the tenant’s final month’s rent. This ensures the deposit remains intact to address any potential issues after the tenant vacates.
Duties with Security Deposit After Tenant Move-Out:
30 Days: Landlords are required by law to return the tenant's security deposit within 30 days of the lease termination or tenant's move-out date.
Written Accounting (if deductions are necessary): If deductions are made for damages, unpaid rent, or cleaning beyond normal wear and tear, an itemized statement must be provided to the tenant, along with any remaining deposit amount.
Extension to 60 Days: If it is not possible to finalize deductions within 30 days (e.g., due to extensive repairs), landlords must send an interim accounting within 30 days. They then have up to 60 days to complete the final return or full accounting of the deposit.