Commonly Asked Questions Q. How much security deposit can a landlord hold? A. If your agreement with the landlord is to rent his property on a week-to week basis, your deposit may not exceed the equivalent of two weeks' rent. If you're renting on a month-to-month basis, your deposit cannot be more than 1 1/2 months' rent. And, if your rental period is greater than month-to-month, your deposit cannot be more than two months' rent. Q. Can my landlord charge me a "pet fee"? A. Yes. In addition to the security deposit, your landlord may also charge you a non-refundable fee if you plan to keep a pet in his property or on the grounds. The 'pet fee' can be any "reasonble" amount that the landlord wishes to charge. If your pet damages his property, the landlord may keep the amount of the pet and security deposit necessary to repair the damage. Q. What happens to my security deposit while I'm a tenant? A. To assure that your security deposit is safe during the period of your tenency. State law requires that it be kept in a "trust account". A trust account is simply a bank account that does not contain any of the landlord's personal funds. If a real estate agent is managing the property, the agent's trust account checks, deposit slips and bank statements must contain the words "trust account" or "escrow account". The trust account must be maintained in a licensed and insured North Carolina bank or savings and loan institution. Within 30 days following the beginning of your lease term, the landlord or his agent must notify you in writing where your security deposit has been placed (typically, the notification is given in the lease), and if your security deposit is moved to a different bank or savings and loan, you must be notified of the new location. Q. Are there any exceptions to the requirement that my security deposit be placed in a trust account? A. Yes, there is one exception. If the owner is managing his own property (or the property is being managed by an agent who has agreed for the owner to hold the deposits), the owner may post a bond to cover the security deposits. In which case, the landlord must (1) notify you and the other tenants of the name of the insurance company providing the bond; (2) purchase the bond from an insurance company licensed to do business in North Carolina; (3) name you and the other tenants as payees under the bond; and (4) assure tha the amount of the bond is sufficient to cover all security deposits collected. (Note; It is difficult for landlords with multiple rental units to maintain the required minimum bond amount because, with tenants constantly moving in and out, the minimum security deposit balance changes from day to day. Consequently, most landlords choose to place security deposits in a trust account rather than purchase a bond.) Q. Can my security deposit be placed in an interest-bearing account? A. Yes, under certain conditions. If a real estate agent is managing property for the owner, he may place your deposit in an interest-bearing account if he has your written permission and the written permission of the owner. If your lease authorizes the agent to place your security deposit in an interest-bearing account, the authorization in the lease must be stated in a clear and conspicuous manner. Q. What will happen to my security deposit at the end of my lease term? A. If you stay for the entire lease term and you have paid all rent due, the landlord (or agent) may deduct from your security deposit only the actual cost of repairing any damage which you have done to his property. He cannot charge you for damage caused by "ordinary wear and tear". What constitutes "ordinary wear and tear" must be determined on a case-by-case basis. For example, if you are the most recent tenant in the property, the landlord cannot charge you to replace such items as carpet, plumbing and appliances which need replacement because they are old and worn out. In fact, you cannot be charged for even contributing to the normal wear and tear of such items. On the other hand, if you caused the item to wear out because of your mistreatment of it, you may be charged for the amount of unusual wear which you caused (but not the entire cost of replacement). Q. What will happen to my security deposit if I vacate the property before the end of my lease? A. In addition to any phsyical damage which you may have caused to his property, the landlord may also deduct from your security deposit his actual damages caused by your moving out of his property before the end of your lease term; however, he may not charge you a "termination fee" or impose any other penalty or forfeiture of deposit for your early termination. For example, your rent is $600 per month and you move out of the landlords' property two months before the end of your lease. If it takes the landlord (using his best efforts) one month to re-rent the property, he may deduct $600 from your security deposit as lost rent for the period during which his property was vacant. Q. What will happen to my security deposit if, for some reason, I am unable to pay my rent? A. If you fail to fulfill your obligations under the lease (including your obligation to pay rent), the landlord or his agent may evict you from his property. (The court proceeding is known as "summary ejectment".) In addition to having you removed from his property, the landlord (or agent) may recover from you any unpaid rent and, of course, the cost of repairing any physical damage which you may have caused to his property - but not damage due to ordinary wear and tear. In addition, if you leave behind any of your personal property (furniture, clothing, etc.), the landlord may also recover from you the cost of storing your property. If your security deposit will not cover the landlord's damages for unpaid rent, physical damage to his property, and storage of your personal property, you will be liable for payment of any remaining costs. Q. Is there a deadline by which the landlord or agent must return my security deposit? A.Within 30 days after the termination of your tenancy, the landlord (or agent) must either send or deliver to you a full refund of your deposit, or give you a partial itemizing in writing any and all allowable deductions. So, it is important for you to give the landlord (or his agent) your forwarding address. If the landlord or agent cannot locate you, he must hold for at least six months any amount of your security deposit remaining after the proper damages have been deducted. Q. What will happen to my security deposit if the ownership or management of the property that I rent is transferred to someone else? A. If the landlord who collected your security deposit transfers ownership of his property to someone else during the term of your lease, he must either refund your security deposit to you (after making any allowable deductions), or transfer your deposit to the new owner (after making any allowable deductions) and notify you in writing of the new owner's name and address. In either case, your deposit must be refunded or notice given to you of the new owner's name and address within thirty days of the transfer. Likewise, if you have paid your security deposit to the landlord's agent and the agent discontinues managing the property during the term of your lease, the agent must either transfer your deposit to the landlord/owner or, with the owner's permission, transfer your deposit to the new manager. In either case, the agent to whom you paid your security deposit must notify you of the new location of your deposit and, if your deposit is being transferred to the owner, advise the landlord of his or her responsibilities to you under the Tenant Security Deposit Act. FAIR HOUSING: Q. Do the fair housing laws apply to all housing transactions? A. Yes, except for the following limited exemptions: The rental of a unit in a multi-family dwelling with not more than four unites where the owner (or a member of the owner's family) lives in one of the units The rental of a room or rooms in a private house where the owner (or a member of the owner's family) lives in the house. Lodging owned or operated by private clubs which give preference to their members. Religious, charitable, or educational institutions or organizations which are operated, supervised, or controlled by religious institutions or organizations that give preference in real estate transactions to their members, provided the organization does not exclude members of a protected category Single-sex dormitories Q. Does the landlord have to repaint the apartment before I move in? A. No. The landlord has no obligation to paint an apartment each time it is rented. Q. Can the landlord charge me more because I have a pet? A. Yes. The landlord may charge extra rent and/or a nonrefundable pet fee in exchange for allowing you to keep a pet in the apartment. Furthermore, the landlord may charge more for some types or sizes of pets than for others; or, may prohibit pets completely. Any agreement you have with the landlord about pets should be included in the written lease. Q. Can my landlord come into my apartment periodically just to check its condition? A. Maybe. Many leases give the landlord the right to enter the property to inspect it to see if the tenant is complying with his obligations, to make necessary repairs, to place "for sale" or "for rent" signs on it, or to show it to prospective purchasers or tenants. Still, entry must be at reasonable times and upon reasonable notice. If your lease doesn't address it, the landlord has no right to enter your apartment during the term of your lease. Q. My one-year lease has expired, but I still live in the property and pay rent on a monthly basis. Now the landlord says he is increasing my rent. Must I pay the increase? A. It depends upon the terms of the lease. Most leases provide that when the lease expires, you automatically become a month-to-month tenant and are no longer guaranteed a particular rental rate. In that case, the landlord can increase the rent by any amount by giving you the same notice of his intent to raise the rent that he would be required to give you to terminate your tenancy. You may either stay and pay the higher rent or move out. Q. Am I responsible for paying my roomate's share of the rent if my name is on the lease? A. Yes. If your name is on the lease, you are legally responsible for the performance of the lease-even if your roommate's name is also on it. Many written leases require each tenant to be responsible for all rent that is due, and landlords will usually take legal action against the remaining tenant if his roommate(s) move out and the full rent is not paid. Q. Can I withhold my rent if the landlord does not do the repairs? A. No, not without a court order or the permission of the landlord. Give the landlord a written request for repairs, and keep a copy. If a reasonable time passes and the repairs are not properly done, you may seek a rent reduction in Small Claims Court for the decreased value of your apartment. Q. Can't I always terminate my lease with 30 days' notice to the landlord? A. No. If your lease provides for a definite termination date, you are typically obligated for the entire lease term, even if you have a good reason for leaving such as illness or a job transfer. Only terminition due to certain military transfers is excused. So, if you leave early and the landlord is unable to re-rent your apartment, he may sue you for the unpaid rent and costs, and/or file a negative credit report against you. Q. Can a landlord or agent limit the number of children allowed in a bedroom, or prohibit the sharing of bedrooms by children of the opposite sex? A. No. Although a landlord may set "occupancy standards" for the number of people that will be allowed to live in a unit, the standards should not be based on the age or sex of the individuals. (Note: The fair housing laws do not limit the applicability of any reasonable local, State, or Federal restrictions regarding the maximum number of persons permitted to occupy a housing unit.) Q. I filled out an application to rent an apartment and gave the landlord money to "hold" the apartment for me. Now I have found another place that I like better. Can I get the money back? A. Probably not. Money you give to "hold" an apartment generally can be kept by the landlord. It is the price you pay to ensure that the landlord does not rent the apartment to someone else. Furthermore, if you have already agreed to rent a particular apartment for a particular term at a particular price, you may have created an oral lease; if so, the money may be considered a security deposit which can be retained by the landlord to the extent necessary to compensate him for you failure to pay rent.    ©Eastgate Rentals-HomeFINDERS Realty