South Carolina Security Deposit Law: Limits, Deadlines & Deductions

The rules on one screen

South Carolina’s deposit law is short. Under S.C. Code Ann. § 27-40-410:

• There’s no cap on the amount.
• No interest is owed.
• Within 30 days after the tenancy ends, you return the deposit or give the tenant a written itemization of the deductions, with any balance.
• Willful noncompliance can cost three times the amount wrongfully withheld, plus attorney fees.

That’s lighter than most states, but the penalty is one of the stiffer ones in the Southeast, so the 30-day statement deserves real care.

Setting the amount when there’s no cap

Because there’s no ceiling, the amount is a business decision. One month’s rent is the usual starting point. Some landlords go higher for applicants with thin credit, or add a refundable pet deposit. A few points to keep in mind:

• Apply the same standard to everyone. Varying the deposit by applicant is fine when it’s tied to legitimate screening criteria like credit or rental history. It’s a fair housing problem when it isn’t.
• Assistance animals aren’t pets. Don’t charge a pet deposit or pet fee for a service animal. For emotional support animals, HUD changed its federal guidance in 2025, so check current South Carolina law before charging one.
• Label every payment. If the lease calls something a refundable deposit, it goes through the 30-day process. A nonrefundable fee should be named as one in writing.

Holding the money

South Carolina doesn’t require a separate account or a particular kind of bank. We’d still keep deposits apart from rent and operating money. When a tenant disputes a deduction months later, a clean account history makes the conversation shorter.

The 30-day itemization

The 30 days run from the end of the tenancy. Within that window, send a written statement that lists each deduction and its amount, along with a check for the balance. Ask the tenant for a forwarding address in writing at move-out, and send the statement there. If they don’t give one, send it to the last address you have and keep proof of mailing.

A good statement is specific: “Replace cracked bathroom sink, $285 (invoice attached)” holds up far better than “Repairs, $285.”

Deductions that hold up, and ones that don’t

You can deduct unpaid rent, charges the tenant owes under the lease, and the cost of repairing damage beyond normal wear and tear.

Probably fair to deduct	Probably not
A torn screen door from a tenant’s dog	Faded exterior paint after four summers
A hole punched in a hollow-core door	Light carpet wear in the hallway
Burned spots on a laminate countertop	Loose grout in an older shower
Junk furniture left in the yard	A water heater that failed from age
The last month’s rent, unpaid	Routine pest treatment between tenants

When you’re unsure, ask whether the problem would have happened with a careful tenant living there the same number of years. If yes, it’s wear and tear.

A worked example at $1,600 a month

Your Greenville three-bedroom rents for $1,600. You collected $1,600 plus a $250 refundable pet deposit, so you hold $1,850. The lease ends March 31 and the tenant hands you the keys and a written forwarding address at the walk-through.

Your dated photos show:

• A torn screen door from the dog: $140 to rescreen and replace the closer
• Burn marks on a section of laminate counter: $360 to replace that section (installer’s estimate)
• Worn living room carpet after three years: $0, normal wear and tear
• Rent: paid through March

Total deductions: $500. You mail an itemized statement with the receipt and estimate, plus a check for $1,350, no later than April 30.

What willful withholding costs

If a court finds you willfully failed to comply, the tenant can recover three times the amount wrongfully withheld and reasonable attorney fees. On the $500 above, that would be $1,500 plus fees, if the deductions didn’t hold up.

South Carolina is landlord-friendly in many ways, including one of the faster eviction processes in the country, but deposit disputes are where small landlords tend to lose money. This page is general information, not legal advice. For a contested deposit, check with a local attorney or the magistrate court.