South Carolina security deposit laws for landlords: the demand trigger and triple damages
South Carolina requires a landlord to itemize deductions in a written notice, with any money due, within 30 days after the tenancy ends and the tenant delivers possession and demands the deposit, whichever is later. A landlord who fails to send the notice with the money can owe three times the amount wrongfully withheld plus attorney fees. The rule is section 27-40-410 of the South Carolina Residential Landlord and Tenant Act.
When does the 30 day clock start?
Section 27-40-410(a) starts the 30 days at the later of three events: termination of the tenancy, delivery of possession, and the tenant's demand. That last piece is unusual. On the plain words of the section, a tenant who moves out and never asks has not started the clock. Upon termination, the deposit is returned less accrued rent and the damages you suffered because the tenant did not meet the tenant duties in section 27-40-510.
Example a made-up tenant hands over the keys on May 31 and sends a written demand for the $1,000 deposit on June 10. The later of the two dates is June 10, so the 30 days end July 10. If the demand arrives June 25, the deadline is July 25. Sending the itemization promptly, without waiting for a demand, removes any doubt.
What must the notice say?
Every deduction must be itemized by the landlord in a written notice to the tenant, together with the amount due, if any. The statute itself says only deductions for accrued rent and damages are covered. It does not set a deposit cap, a separate account rule or an interest rule in this section.
A practical itemization lists each charge on its own line with the date, the reason and the amount, and attaches the invoice or receipt behind it. The statute asks only for an itemized written notice, but a notice that a tenant can check line by line is much harder to call wrongful than a single lump sum. Put the rent and damages on separate lines, since the section allows the deposit to cover accrued rent and the damages caused by the tenant's failure to meet the duties in section 27-40-510, and treat anything beyond those two as outside the deposit.
What if the tenant leaves no forwarding address?
The tenant must give you a forwarding or new address in writing, so the notice and any money can be sent. If the tenant does not, the tenant is not entitled to damages under this subsection, provided you had no notice of the tenant's whereabouts and mailed the notice and any amount due to the tenant's last known address. Mail it anyway and keep the proof.
What is the triple damages rule?
Subsection (b): if the landlord fails to return any prepaid rent or deposit with the required notice, the tenant may recover the property and money in an amount equal to three times the amount wrongfully withheld, and reasonable attorney fees. Other damages under the chapter or otherwise are not cut off (subsection (d)).
Example a made-up landlord keeps $400 of a $1,000 deposit and never sends a notice. A court finds the $400 was wrongly withheld. The tenant recovers three times that, $1,200, plus attorney fees, against the $400 that would have come back.
What if I charge different tenants different deposits?
If you rent more than four adjoining dwelling units on the premises and use different standards to calculate deposits for different tenants, you must, before the rental agreement is made, post a statement of the standards in a conspicuous place on the premises or where rent is paid, or give each prospective tenant a statement (subsection (c)). If you do not, the difference between that tenant's deposit and the lowest deposit required of any tenant in a comparable unit cannot be used for damages.
Who is bound when the building changes hands?
Subject to section 27-40-450, the holder of the landlord's interest at the time the tenancy ends is bound by section 27-40-410 (subsection (e)). A buyer should therefore get a per tenant deposit list at closing. See security deposits when an apartment building is sold.
How DoorKeeping handles it
With DoorKeeping, every property has its own books and each tenant's deposit is a separate line there, so the number you itemize against is always visible. Signed leases and the written demand and forwarding address can be stored as property documents. Deposits stay in your own bank account: DoorKeeping never holds your money and sends a payment only when you approve it. It gives no legal advice.
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Questions
- How long does a South Carolina landlord have to return a security deposit?
- Within 30 days after the tenancy ends and the tenant delivers possession and demands the deposit, whichever is later.
- What is the penalty in South Carolina for not returning a deposit with the notice?
- Three times the amount wrongfully withheld, plus reasonable attorney fees (27-40-410(b)).
- Does a South Carolina tenant have to give a forwarding address?
- Yes, in writing. Without one, the tenant cannot recover damages if the landlord had no notice of the tenant's whereabouts and mailed to the last known address.
- Is there a security deposit cap in South Carolina?
- Section 27-40-410 sets no cap on the amount.