Residential Landlord-Tenant Act

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What provisions protect consumers security deposits or other refundable
deposits?
H. B.673, the consumer act, limits the amount of security deposits
that cen be required to no more than one month's rent. The bill sponsored
by landlords, H. B. 596, has no limit* The consumers receive interest on
their security deposits at the going interest rate for deposits. Representative Long of Alamance County sponsored a bill earlier this legislative term,
H. B. 355, which places a ceiling on interest that can be accrued to consumers
at 4 1/2$ simple interest per year. The current rate of interest at most N.
C. banking institutions falls between 5-5 1/2$ compounded quarterly. The bill
supported by landlords has no provisions for security deposits being placed
in interest bearing accounts to consumers.
The 1970 census indicated that N. C. Housing stock was 1,638,246 units
with an average rent of $67 per month. This means that in 1970 if all landlords charged one month security deposit the total amount held by landlords
was approximately $109,522,482, one-tenth of a billion dollars.  Five and one-
half percent interest on that amount would have amounted to $6,023,756.31.
These amounts have changed considerably since 1970 because of increases in
our housing stock and the increases in average rent which shows that the rip-
offs allowed landlords is ever increasing and beyond any standard of equity.
The consumer act provides that upon termination of the rental agreement and delivery of posession by the tenant the landlord must send an itemized statement of all claims on tenants security deposits within 14 days.
The landlord act extends the time to 30 days after termination of tenancy.
The Long Bill, H.B. 355, requires the written statement within 21 days.