Overview
South Carolina law provides clear guidance on the handling of security deposits to protect tenants and ensure landlords operate within the law. The rules outline how deposits must be collected, maintained, and returned.
Under South Carolina Code of Laws § 27-40-410, landlords must comply with specific requirements for managing deposits. Non-compliance may result in penalties, including forfeiture of deposit rights.
This guide covers:
How much landlords can charge
Where deposits must be stored
Rules for returning security deposits
Penalties for non-compliance
Related Statute: S.C. Code § 27-40-410
1. Security Deposit Limits & Storage Requirements
Maximum deposit: South Carolina does not impose a statutory limit on how much a landlord can charge for a security deposit.
Storage requirements: While landlords must safeguard deposits, there is no requirement to store them in a separate or interest-bearing account.
Tenant notification: There is no requirement to notify tenants about the location or status of the deposit account.
Law Reference: S.C. Code § 27-40-410
2. Security Deposit Returns & Allowable Deductions
Return deadline: Landlords must return the deposit within 30 days after the end of the lease and delivery of possession.
Permissible deductions: Deductions may be made for unpaid rent, damages beyond normal wear and tear, and any other amounts specified in the lease.
What landlords cannot deduct: Landlords may not deduct for normal wear and tear such as worn carpeting or faded paint.
Itemized statement required: A written itemized list of deductions must accompany the returned portion of the deposit.
Law Reference: S.C. Code § 27-40-410(a)
3. Interest Payments & Documentation Requirements
Interest payments: South Carolina law does not require landlords to pay interest on security deposits.
Move-in condition report: While not required, both parties are encouraged to document the condition of the property at move-in to avoid disputes.
Tenant review period: Tenants are encouraged to inspect the unit at move-in and maintain documentation to ensure fair handling of the deposit.
Failure to provide documentation: If landlords fail to return the deposit or provide the itemized statement within 30 days, they may forfeit the right to withhold any portion.
Law Reference: S.C. Code § 27-40-410
4. Penalties for Mishandling Security Deposits
South Carolina law includes penalties for landlords who do not follow deposit rules.
Failure to return the deposit within 30 days may result in liability for the amount wrongfully withheld, along with potential damages and legal fees.
Failure to provide a proper itemized statement also risks forfeiture of the deposit and potential legal consequences.
Law Reference: S.C. Code § 27-40-410
Key Takeaways
There is no limit on the amount that can be charged as a security deposit.
Deposits must be returned within 30 days of lease termination and possession.
Itemized deductions must be included if any portion of the deposit is withheld.
Interest is not required, and deposit storage does not need to be in a separate or special account.
Non-compliance may lead to forfeiture of the deposit and additional penalties.
By understanding and following South Carolina security deposit laws, landlords can remain compliant, and tenants can protect their right to a fair deposit return.
Disclaimer: This blog post is intended for informational purposes only and does not constitute legal advice. Readers should not act or refrain from acting based on any information included in this post without seeking legal counsel or other professional guidance specific to their situation. The information is provided “as is” without any representations or warranties of any kind, express or implied, including but not limited to the accuracy, completeness, or reliability of the content. Laws and regulations may change and vary by jurisdiction.
