Security deposits in South Carolina are regulated by South Carolina Code of Laws § 27-40-210 to § 27-40-510. Certain municipalities may have local laws that supplement state regulations. To ensure full compliance, verify the regulations applicable in your area.

KEY POINTS AT A GLANCE: South Carolina

Deposit Cap: No

Holding Requirements: No

Interest Required: No

‍Return Window: 30 days

COLLECTION & HOLDING REQUIREMENTS

Deposit Cap: South Carolina state law does not currently limit the amount landlords/property managers can require as a security deposit. 

If a landlord/property manager (1) rents more than four adjoining dwelling units, and (2) imposes different standards for calculating security deposits for tenants at the same premises, the landlord/property manager must either (a) post a statement clearly indicating the standards by which security deposits are calculated in a conspicuous place on the premises or at the place at which rent is paid, or (b) provide each prospective tenant with a statement setting forth the standards for calculating security deposits before the beginning of the lease term. If a landlord/property manager fails to comply with this requirement, the difference between the security deposit required of the tenant at issue and the lowest security deposit required of any other tenant in a comparable dwelling unit on the premises is not subject to deductions for damages caused by the tenant.

Holding Requirements: South Carolina state law does not currently require security deposits to be held in a bank account within the state, in a separate account, or in an interest-bearing account.

Information Provided to Tenant: South Carolina state law does not currently require landlords/property managers to disclose where the security deposit is held.

‍Interest on Deposits: South Carolina state law does not currently require landlords to pay interest to tenants on security deposits.

RETURN

Timeline: Within 30 days of vacancy, the landlord/property manager must either (1) return the full security deposit to the tenant, or (2) provide the tenant with a written itemized notice of any deductions to the security deposit, together with the portion of the security deposit being returned. If the tenant does not provide a forwarding address, landlords/property managers must mail the security deposit and written notice of deductions, if any, to the tenant’s last known address.

Documentation of Deductions: South Carolina state law does not require any specific documentation or level of detail to be included in the itemized notice of deductions to the security deposit.

Permissible Deductions: Landlords/property managers may deduct the following from security deposit funds:

• Unpaid rent
• Damages suffered by the landlord by reason of the tenant’s noncompliance with the lease or South Carolina Code of Laws § 27-40-510

Penalties: Failure to return the security deposit or provide the written itemized notice of deductions as required by South Carolina state law may result in the landlord/property manager being liable for up to 3x the amount of the security deposit that is wrongfully withheld, plus attorney’s fees and court costs if the tenant wins in a lawsuit. However, if the tenant fails to provide a forwarding address at the end of the tenancy, the tenant is not entitled to damages for the landlord/property manager’s failure to return the itemized notice and security deposit provided that the landlord/property manager (1) had no notice of the tenant’s whereabouts and (2) mailed the itemized notice and security deposit due, if any, to the tenant’s last known address.

SALE OF THE RENTAL PROPERTY

If the property is sold, the landlord/property manager must transfer the security deposit to the new owner and notify the tenant in writing within a reasonable time after the sale.