What can a North Carolina landlord deduct from the security deposit?
North Carolina generally allows deductions for: unpaid rent, damage beyond normal wear and tear, cleaning beyond normal, and costs to comply with the lease (e.g. carpet cleaning if required). NOT allowed: normal wear and tear (scuffs, minor nail holes, fading), repainting because paint is old, pre-existing damage (unless documented at move-in), and upgrades. Bad-faith deductions can trigger penalties: 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.