Overview
South Carolina security deposit laws are governed by SC Code § 27-40-410 within the Residential Landlord and Tenant Act. South Carolina has no state cap on deposit amounts but has strong penalties for wrongful withholding—up to triple damages plus attorney's fees. Passive's deposit management platform helps avoid these penalties through automated compliance tracking.
Maximum Security Deposit
South Carolina does not set a maximum limit on residential security deposits. The amount is determined by the lease agreement between landlord and tenant.
In common practice, most South Carolina landlords charge 1-2 months' rent for unfurnished units.
Disclosure Requirements for Multi-Unit Properties
If a landlord rents more than four adjoining dwelling units and charges different deposit amounts to different tenants, they must:
- Post a statement in a conspicuous place showing the standards for calculating deposits, OR
- Provide each prospective tenant with a written statement of those standards
Return Timeline
Under SC Code § 27-40-410, landlords must return the remaining deposit and provide an itemized list of deductions within 30 days after:
- The tenancy ends (per the lease termination date), AND
- The tenant delivers possession of the premises
Forwarding Address
The tenant must provide the landlord with a forwarding address in writing. The 30-day deadline starts when the tenant vacates and returns the keys. (North Carolina takes a similar approach—see North Carolina security deposit laws.)
Interest Requirements
South Carolina does not require landlords to pay interest on security deposits or place deposits in interest-bearing accounts.
Storage Requirements
South Carolina law does not require landlords to:
- Hold deposits in a separate account
- Use an interest-bearing account
- Provide receipts or disclose account information
Allowable Deductions
Landlords may deduct from the security deposit for:
- Unpaid rent
- Damages beyond normal wear and tear
- Other amounts specified in the lease agreement
Important: Landlords may not deduct for normal wear and tear such as worn carpeting or faded paint.
Itemized Statement Required
South Carolina requires landlords to give tenants a written, itemized list of any deductions. The list must clearly describe each charge and show the exact amount withheld. Receipts or invoices are not required by state law.
Penalties for Non-Compliance
South Carolina has strong penalties for violations:
Failure to Return or Itemize
If the landlord fails to return the deposit or provide the required itemized list within 30 days:
- The tenant may recover the property and money owed
- Plus an amount equal to three times the amount wrongfully withheld
- Plus reasonable attorney's fees
This is one of the strongest penalty provisions in the country.
Common Compliance Questions
What counts as "normal wear and tear"?
Normal wear and tear includes minor scuffs on walls, slightly worn carpet in high-traffic areas, small nail holes from hanging pictures, and faded paint from sunlight. It does not include large holes in walls, stained or burned carpet, broken fixtures, or damage from pets. When in doubt, document the condition at move-in with dated photos.
How should I document the unit's condition?
Complete a detailed move-in checklist with the tenant, noting existing damage, appliance conditions, and overall cleanliness. Take timestamped photos or video of every room. At move-out, repeat the process. This documentation protects both parties and makes deduction decisions defensible if disputed. Schedule a demo to see how Passive simplifies condition documentation.
Can I deduct for unpaid utility bills?
Only if your lease specifically allows it and the utilities are in your name. If utilities are in the tenant's name, contact the utility company directly—they have their own collection processes. Never make unauthorized deductions, even for amounts you believe the tenant owes.