Anybody have any verbiage regarding SD ownership/distribution? We all say it stays with the house until the final original tenant leaves, but how do you have that worded in your lease?

Also, with most payments made these days electronically, we know who made the actual payment of the original deposit - do you address that?

Ouch, I just looked and I did not put the part in about the deposit staying with the property. It is in my list or things to add but I have yet to do so.

The lease says:

4. Tenant Security Deposit: The Security Deposit shall be paid prior to Tenant’s occupancy of the Premises, and shall be administered in accordance with the North Carolina Tenant Security Deposit Act (N.C.G.S. § 42-50 et. seq.). It may in the discretion of either the landlord or the agent be deposited in an interest-bearing account. Any interest earned upon the tenant security deposit shall accrue for the benefit of the Landlord and may be withdrawn by Landlord as often as permitted by the terms of the account.

Upon any termination of the tenancy herein created, the Landlord may deduct from the Tenant Security Deposit amounts permitted under the Tenant Security Deposit Act. If there is more than one person listed above as Tenant, Agent may, in Agent’s discretion, pay any balance of the Tenant Security Deposit to any such person, and the other person(s) agree to hold Agent harmless for such action. If the Tenant’s address is unknown to the Landlord, the Landlord may deduct any permitted amounts and shall then hold the balance of the Tenant Security Deposit for the Tenant’s collection.

If the Landlord removes Agent or Agent resigns, the Tenant agrees that Agent may transfer any Tenant Security Deposit held by Agent hereunder to the Landlord or the Landlord’s designee and thereafter notify the Tenant by mail of such transfer and of the transferee’s name and address. The Tenant agrees that such action by Agent shall relieve Agent of further liability with respect to the Tenant Security Deposit. If Landlord’s interest in the Premises terminates (whether by sale, assignment, death, appointment of receiver or otherwise), Agent shall transfer the Tenant Security Deposit in accordance with the provisions of North Carolina General Statutes § 42-54.

The security deposit will be used as a fund to repair tenant damage, and may not be used by the tenant to fund a rental payment or last month’s rent.

The move out letter says:

This letter is confirmation that we received notice of your intent to vacate the home you are now renting. You must be out by August 31st by Noon or another month’s rent will be due. If there are any unanticipated problems with your move out, let us know as soon as possible.

SECURITY DEPOSIT: In order to prevent any misunderstanding regarding your deposit, move out instructions and procedures are enclosed. The accounting and remains of your deposit will be mailed to your forwarding address within 30 days. Last month’s rent is not prorated and must be paid in full. The security deposit is not for paying the last month’s rent, it is for potential damages.

PRORATED RENT: Per your lease, if you return the keys / move out any later than the last day of the month, the next full month’s rent is due.

Last month’s rent is not prorated and must be paid in full.

Please call the office at 333-333-3333 when you will be completely moved out in order to return all the keys, remotes, and garage door openers.

Do Not Shut off the Utilities. Management will call the electric, gas, and water utilities and transfer them out of your name the next business day upon receipt of the keys. You can terminate cable, internet, and private trash service.

Please give the US Postal Service your forwarding address as well as Amazon, Overstock, Ebay and any other delivery or online services you may use.

THANK YOU & GOOD LUCK WITH YOUR MOVE!

Security deposit is returned within 30 days after two conditions have to be met. The 30 day count doesn't start until the end of the notice period and the property has been returned to possession of the landlord.