Looking for a landlord tenant expert in security deposits

BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes

Hey y'all!

A friend rented an apartment in Raleigh. Two years into residency, they asked for a security deposit, and are now claiming that damages exceed the deposit and will return none of it.

There was no walk through at the time she gave the deposit, and has been no accounting for it. I believe we're going on 3 or 4 weeks now.

Any advice or help would be appreciated.

[email protected]Podcast Guest on Show #261

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Eric F.

Real Estate Investor · Raleigh, NC · Member since 2012 · 427 posts · 297 votes

When she first rented it, did she not pay a deposit? What made them ask for one after 2 years? Which apartment/management company is this?

The statute related to security deposits is below

§ 42-52. Landlord's obligations. Upon termination of the tenancy, money held by the landlord as security may be applied as permitted in G.S. 42-51 or, if not so applied, shall be refunded to the tenant. In either case the landlord in writing shall itemize any damage and mail or deliver same to the tenant, together with the balance of the security deposit, no later than 30 days after termination of the tenancy NC General Statutes - Chapter 42 Article 6 2 and delivery of possession of the premises to the landlord. If the extent of the landlord's claim against the security deposit cannot be determined within 30 days, the landlord shall provide the tenant with an interim accounting no later than 30 days after termination of the tenancy and delivery of possession of the premises to the landlord and shall provide a final accounting within 60 days after termination of the tenancy and delivery of possession of the premises to the landlord. If the tenant's address is unknown the landlord shall apply the deposit as permitted in G.S. 42-51 after a period of 30 days and the landlord shall hold the balance of the deposit for collection by the tenant for at least six months. The landlord may not withhold as damages part of the security deposit for conditions that are due to normal wear and tear nor may the landlord retain an amount from the security deposit which exceeds his actual damages. (1977, c. 914, s. 1; 2009-279, s. 5.)

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Ralph R.
Investor · Bethel, AK · Member since 2013 · 1k+ posts · 852 votes
9y
Mindy Jensen I'm not sure about Raleigh but I do know about Colorado. I had a PM I fired in Loveland. He tried to withhold the tenants deposit from the new PM. I called DORA. (Dept Of Regulatory Agency's). I got the deposit back in less than a week. I believe there should be some similar agency there the tenant can call that will enforce the tenants rights RR
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Eric F.
Real Estate Investor · Raleigh, NC · Member since 2012 · 427 posts · 297 votes
9y
When she first rented it, did she not pay a deposit? What made them ask for one after 2 years? Which apartment/management company is this?
The statute related to security deposits is below
§ 42-52. Landlord's obligations. Upon termination of the tenancy, money held by the landlord as security may be applied as permitted in G.S. 42-51 or, if not so applied, shall be refunded to the tenant. In either case the landlord in writing shall itemize any damage and mail or deliver same to the tenant, together with the balance of the security deposit, no later than 30 days after termination of the tenancy NC General Statutes - Chapter 42 Article 6 2 and delivery of possession of the premises to the landlord. If the extent of the landlord's claim against the security deposit cannot be determined within 30 days, the landlord shall provide the tenant with an interim accounting no later than 30 days after termination of the tenancy and delivery of possession of the premises to the landlord and shall provide a final accounting within 60 days after termination of the tenancy and delivery of possession of the premises to the landlord. If the tenant's address is unknown the landlord shall apply the deposit as permitted in G.S. 42-51 after a period of 30 days and the landlord shall hold the balance of the deposit for collection by the tenant for at least six months. The landlord may not withhold as damages part of the security deposit for conditions that are due to normal wear and tear nor may the landlord retain an amount from the security deposit which exceeds his actual damages. (1977, c. 914, s. 1; 2009-279, s. 5.)
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Adam SchneiderPro Member
Lender · Raleigh, NC · Member since 2012 · 955 posts · 639 votes
9y
@Ralph R. Check out NC GS --you can google NC GS Security Deposit.
http://www.ncleg.net/EnactedLegislation/Statutes/P...
Regarding the issue of damages, the vagueness is if it could be considered normal wear and tear. Also, was the money specifically labelled as Security Deposit? It's important for a couple reasons, including the landlord's obligation to identify where that money is being held and that it is indeed in a Trust Account. For claims under $10K, go to Small Claims....(up until 2013, it was $5K).
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Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
9y
See also which is a state form regarding disputed deposit monies. It sounds like, if the person who runs the apartment is a licensed broker, the tenant/ex-tenant has recourse through the . People (brokers) occasionally lose their license over lax handling of security deposits, as you can see in the second instance of .
I personally never recall seeing a case in small claims solely about a security deposit dispute. I'm sure they happen.
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Brian Corbett
Residential Real Estate Broker · Greenville, NC · Member since 2015 · 164 posts · 90 votes
9y
NCGS 42 will clearly define the deposit accounting, proper holding, and use of the deposit post tenancy. Even if the landlord is/was not a licensed individual they are still bound to abide by the rules according to landlord-tenant law, including where the deposit is held and how it is documented.
If the lease did not list a deposit owed by the tenant, then they had no legal right to demand one 2 years into the lease in my opinion. @Adam Schneider is correct in that small claims would be the fastest way to file a dispute.
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Adam SchneiderPro Member
Lender · Raleigh, NC · Member since 2012 · 955 posts · 639 votes
9y
@Brian Corbett --are you coming to the Rocky Mount MeetUp on the 18th of January?
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Mindy JensenPro Member
OP
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y
Thank you so much for these responses!!!
Yes, she was not asked for a security deposit when she moved in. Two years later, she was asked for one, but they didn't do an inspection at that time, either.
The plot thickens...
They are charging her for a scratch in the hardwood.
[email protected]Podcast Guest on Show #261
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Brian Corbett
Residential Real Estate Broker · Greenville, NC · Member since 2015 · 164 posts · 90 votes
9y
@Adam Schneider yes, I plan on attending. Could you email me the details so I can add it to my calendar?
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Patrick Madigan
Real Estate Agent · Raleigh, NC · Member since 2015 · 52 posts · 28 votes
9y
@Mindy Jensen - sorry to hear about these troubles. In addition to advice above, I would recommend they consult with a local RE attorney who knows these issues well, and the courts/procedures in which they will likely play out. I have a few attorneys that I trust for my clients' closings, and I'm currently asking around to see if they handle landlord-tenant issues. Don't want to refer you unless I know they're trusted in this arena, as well. Will get back to you ASAP.
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Patrick Madigan
Real Estate Agent · Raleigh, NC · Member since 2015 · 52 posts · 28 votes
9y
@Mindy Jensen - one of my closing attorneys referred me to Bart White (with Hatch, Little & Bunn) for landlord-tenant issues. Hope he's able to help, or point you in the right direction. Let us know how it goes!
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Mindy JensenPro Member
OP
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y
Thank you for all the help! @Ralph R. @Eric F. @Adam Schneider @Chris Martin @Brian Corbett @Patrick Madigan .
She sent them a letter with many of these points included, and just received notice that she will be getting her deposit back.
I really appreciate your help!
[email protected]Podcast Guest on Show #261
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