Walnut Street Rentals Walnut Street Rentals
Equal Housing Opportunity (919) 378-1563
Our Policies on Security Deposits
The State of North Carolina takes the handling of resident security deposits very seriously, and so do we. A security deposit is money which belongs to the resident and is held in trust while the resident has possession of a leased property. A security deposit is certainly not advance rent or income to the landlord.

The security deposit will be held under the resident's name in our trust account during the entire time that the resident posesses the home. This deposit may only be removed from trust after the property manager or landlord has recovered full posession of the leased property and a final determination has been made regarding monies owed by resident for unpaid rent and damages. In this way, the security deposit is always the resident's money and will be refunded back to the resident and/or applied to any remaining debt to the landlord.

We are not able to provide immediate refunds of security deposits at the final walk-through, as we must have an opportunity to thoroughly examine the condition of the property and ascertain definite costs for any required repairs. NC law specifies that the landlord may take up to 30 days to provide a final accounting of the security deposit to the resident. However, Walnut Street Rentals makes every effort to send out the security deposit accounting and refund within 14 days of receiving possession of the lease property.

Walnut Street Rentals prefers to refund the full security deposit to a resident following the successful completion of a tenancy. Normal wear-and-tear is to be expected, and we account for the length of the tenancy and the number of people we agreed to have reside in the home. Everything has a limited lifespan with normal use. In most cases, we are able to refund the full security deposit within 14 days of the termination of a lease.

Charges which reduce the deposit refund can include:

  • Unpaid rents and late fees
  • HOA or government fines paid by the landlord which were incurred by the resident
  • Costs for eviction filings
  • Damage to the property caused by negligence, improper use, unauthorized occupants and pets or any action contrary to the lease agreement.
  • Costs to dispose of items left behind by residents, especially trash and debris
  • Costs for cleaning. We have properties professionally-cleaned prior to delivery, and we do expect them to be returned in a reasonable manner.
For example: Carpet wear consistent with the number of occupants and length of lease can not be charged to the resident's account, but costs to repair burns or pet stains in the carpet will definitely be charged.

The security deposit is not an advance payment of the final month's rent. Attempting to not pay the final month's rent will result in an eviction filing. Removing the security deposit from trust prior to re-taking possession of the leased property is against the best interests of the property owner and not something that we do.

You can read more about this subject in the "Tenant Security Deposits" brochure from the NC Real Estate Commission.