Is NC landlord required to give deposit back (renter, month-to-month)

[Molly23]

Can you give guidance on this question?

Landlord advertises a home for rent in North Carolina. Possible renter contacts the landlord and comes to look at the rental property on December 12. On December 15, the potential renter contacts the landlord and in written text informs they would like to move forward with the application process for the home. They are informed of the documentation they would need to bring with them that includes pay stubs, driver license or picture ID for the application( this documentation is brought). In a text they were informed, "At the lease signing, you will need the rent for this month which will be prorated at 25.00 per day. If we sign Friday there will be 15 days x 25.00=$375. Your deposit can be payed over three months at $258.00 each payment. The renter text back, "So a total of $633". The total is confirmed. On Dec. 19 the renter sends a text that we can only pay $560.00 today did you still want to meet today because we will have the rest Wednesday". Landlord confirms we can go ahead and meet at schedule appointment that day. On December 19, the legal month-to-month lease and application is signed and renter paid $560.00. The rent is $775.00 monthly and deposit is $775.00. With the month-to-month lease signed and money paid on the months rent, the landlord takes the unit off of the market for rent. Over the next few days, others inquire about the home but informed that the unit is no longer available and potential renters are turned away. On December 23, the renter contacts the landlord by text and said, "Somethings have changed and came up and I won't be able to move, is there anyway I can get my deposit back? The landlord replies by text, I'm sorry but the deposit was non- refundable and covered me taking it off the market. No response was made by the renter until December 29 and the renter texted, "Best wishes! Happy New Year and God Bless".

At the beginning of January, the landlord begins the process over and places the home back on the market for rent. This required going through the screening process and showing the home again. The home was not rented until the end of January with the loss of an entire months rent.

With no additional communication from the renter, surprisingly on January 29th the Landlord received a summons to appear in civil court for claims of non-return of deposit.

Is the landlord correct, when the month-to-month lease was signed and agreed on by both tenant/landlord that also requires a 30 day notice in lease, money was paid for the rent on the home, home was taken off of the market, one months loss of rent for the landlord, not to return money paid for prorated rent and deposit?
The renters never moved into the home although keys were made and available for pick up.

[Owen Wister]

What does the lease say about the return of deposit?

[getatag]

In general, the NC law will follow the process of making the landlord "whole" again. That means you can recoup monies spent taking it off advertising as available or potential rental income, but no more than what you would normally make during the entire process of taking the home out of the rental market for the period. Bring plenty of paperwork proof of the loss of income from the time of contract activation.
Of course, this advice comes with the disclaimer of:
Check your contract and check with a lawyer if there are ANY questions.

[BoSox 15]

Here is the verbiage from the NC Legislature regarding tenant deposits: https://www.ncleg.net/EnactedLegisla.../Article_6.pdf

Fortunately (or unfortunately) the damages are small enough that if it were me I'd take my chances in court with publicly available information. You'd likely spend more on an attorney than your case is worth.

Just read all you can and be prepared in court.

I imagine that this is all predicated on you having a duly signed rental agreement and not some text messages. But I'm not a lawyer, just giving my two cents.

[luv4horses]

My logic would say a deposit is a deposit. It holds the property for the renter so that a different party isn’t given those rights. The depositor failed to perform. Period.

I’m not Judge Judy, but I certainly hope these depositors are able to pay any court costs/expenses. They are wasting your time and resources and should get their hands slapped.

[NC Observer]

Originally Posted by Molly23

Can you give guidance on this question?

Landlord advertises a home for rent in North Carolina. Possible renter contacts the landlord and comes to look at the rental property on December 12. On December 15, the potential renter contacts the landlord and in written text informs they would like to move forward with the application process for the home. They are informed of the documentation they would need to bring with them that includes pay stubs, driver license or picture ID for the application( this documentation is brought). In a text they were informed, "At the lease signing, you will need the rent for this month which will be prorated at 25.00 per day. If we sign Friday there will be 15 days x 25.00=$375. Your deposit can be payed over three months at $258.00 each payment. The renter text back, "So a total of $633". The total is confirmed. On Dec. 19 the renter sends a text that we can only pay $560.00 today did you still want to meet today because we will have the rest Wednesday". Landlord confirms we can go ahead and meet at schedule appointment that day. On December 19, the legal month-to-month lease and application is signed and renter paid $560.00. The rent is $775.00 monthly and deposit is $775.00. With the month-to-month lease signed and money paid on the months rent, the landlord takes the unit off of the market for rent. Over the next few days, others inquire about the home but informed that the unit is no longer available and potential renters are turned away. On December 23, the renter contacts the landlord by text and said, "Somethings have changed and came up and I won't be able to move, is there anyway I can get my deposit back? The landlord replies by text, I'm sorry but the deposit was non- refundable and covered me taking it off the market. No response was made by the renter until December 29 and the renter texted, "Best wishes! Happy New Year and God Bless".

At the beginning of January, the landlord begins the process over and places the home back on the market for rent. This required going through the screening process and showing the home again. The home was not rented until the end of January with the loss of an entire months rent.

With no additional communication from the renter, surprisingly on January 29th the Landlord received a summons to appear in civil court for claims of non-return of deposit.

Is the landlord correct, when the month-to-month lease was signed and agreed on by both tenant/landlord that also requires a 30 day notice in lease, money was paid for the rent on the home, home was taken off of the market, one months loss of rent for the landlord, not to return money paid for prorated rent and deposit?
The renters never moved into the home although keys were made and available for pick up.

This is actually technically incorrect, as deposits are legally refundable IF the tenant meets the terms of the lease and there are no damages that could be deducted from the deposit. However, in this case, the tenant failed to follow the terms of the lease by not giving a 30 day notice, and you are entitled to keep the (partial) deposit. This person doesn't have a legal leg to stand on. You could actually counter sue for the balance of the deposit not paid. The fact that the tenant dodn't move into the rental is irrelevant.

[JONOV]

I think I'd send her $165 and not waste my time. The renter gives me the feeling of some sort of blood sucking insect that will annoy you til you make it go away.

[Molly23]

Thanks for sharing the website information. I have taken the time to go over the NC Standard Lease Agreement/ Residential Lease Agreement-North Carolina that the tenant signed. We will see how things turn out and will post the results to the group. I have found this a great learning experience as I have been reading to get ready for presenting the evidence I have available.

[Molly23]

Thanks for all the feedback on this question about returning the deposit.
Went to Small Claims Court today and found in the landlords favor. This decision was made because in the lease that was signed by the potential tenant, this statement was is in my lease that she signed:
- It is understood that no money will be refunded if you are unable to move in, or stay as agreed.
- You must stay as agreed and give 60 days notice before moving and leave the property clean and in
good order or you will lose your deposit. Rent is not refundable.

Lessons Learned: I will be cautious about listing money received as "Deposit" on my receipt.
Make sure you have clear statements as I did in my lease agreement that was signed and
leaves little room for dispute.

Thanks again for all the feedback from this group!!!!!