How long must a North Carolina landlord keep records of the security deposit?
North Carolina landlords should keep deposit-related records for at least the statute of limitations period for a deposit dispute, typically 4 to 6 years depending on the state. This includes the original deposit receipt, the itemized statement at move-out, any invoices supporting deductions, photographs of the unit at move-in and move-out, and the move-in inspection checklist. After the statutory deadline (60 days under NCGS 42-52) for returning the deposit has passed, the records are the landlord's defense if the tenant later sues. Without records, the landlord typically loses any contested deduction. Cloud-stored, dated records are best practice. Forfeiture of the right to withhold any portion of the deposit if the landlord fails to comply with NCGS 42-52.
Source: NCGS 42-52
This is an informational answer based on NCGS 42-52 as of early 2026. It is not legal advice. Housing law changes year to year and local ordinances (especially in rent-controlled or rent-stabilized cities) can override or add to state law. For contested cases, consult a North Carolina-licensed attorney.