Quick Answer
Under S.C. Code § 27-40-410(a), you return the deposit, less amounts withheld for accrued rent and for damages caused by the tenant’s breach of § 27-40-510, and you itemize every deduction in a written notice. The notice and any amount due go out within 30 days after termination of the tenancy and delivery of possession and demand by the tenant, whichever is later. If you fail to return the deposit with the required notice, § 27-40-410(b) lets the tenant recover three times the amount wrongfully withheld plus reasonable attorney’s fees. Statute text last checked October 2, 2026.
Key Takeaways
- The 30 days run from the later event. The statute counts from termination, delivery of possession, and the tenant’s demand, whichever is later.
- Itemize in writing. Each deduction goes in a written notice with the amount due.
- Deductions are limited to rent and damages. Section 27-40-410(a) names accrued rent and damages from the tenant’s breach of § 27-40-510.
- The tenant supplies a forwarding address. If the tenant does not, the tenant is not entitled to damages under subsection (a) when you had no notice of the tenant’s whereabouts and mailed the notice and amount due to the last known address.
- The penalty is three times the amount wrongfully withheld, plus reasonable attorney’s fees (§ 27-40-410(b)).
1. The 30-Day Statutory Accounting Timeline under SC Code § 27-40-410
Section 27-40-410(a) requires you to itemize any deduction in a written notice to the tenant, with the amount due, if any, within thirty days after termination of the tenancy and delivery of possession and demand by the tenant, whichever is later.
In practice, count from the latest of three events: the tenancy ends, the tenant delivers possession, and the tenant makes a demand for the deposit. Keep a dated record of each, and send your notice well inside the 30 days. The statute has no cap on the amount of a security deposit in this section.
2. Permitted Deductions under South Carolina Law
Section 27-40-410(a) allows you to withhold:
- Accrued rent.
- Damages you suffered because the tenant breached § 27-40-510, which sets the tenant’s duties to keep the unit clean and safe and not to damage it.
The subsection does not list utility balances or flat cleaning fees. Charge only what you can show was rent owed or damage the tenant caused, and do not charge for ordinary wear.
3. The Forwarding Address
The tenant must give you a forwarding or new address in writing, so that you can send the notice and the amount due. If the tenant does not, the tenant is not entitled to damages under subsection (a) as long as you (1) had no notice of the tenant’s whereabouts and (2) mailed the notice and amount due, if any, to the tenant’s last known address. Mail it to the last known address and keep proof.
4. The Penalty under SC Code § 27-40-410(b)
If you fail to return a prepaid rent or security deposit with the notice that subsection (a) requires, the tenant may recover the property and money in an amount equal to three times the amount wrongfully withheld, plus reasonable attorney’s fees. Subsection (d) adds that the section does not stop either side from recovering other damages under the chapter or otherwise.
5. Records and Practical Steps
- Take date-stamped photographs at move-in and again when the tenant returns possession.
- Itemize each deduction with the invoice, receipt, or hours and rate behind it.
- Log the date you received the forwarding address and the tenant’s demand.
- Mail the notice with tracking, and send it early enough to arrive inside the 30 days.
6. Questions Owners Ask
When does the 30 days start? At the latest of termination, delivery of possession, and the tenant’s demand, under § 27-40-410(a).
What if I cannot find the tenant? Mail the notice and amount due to the last known address, and keep proof that you had no notice of the tenant’s whereabouts.
Is the penalty only for bad faith? Subsection (b) applies when you fail to return the deposit with the required notice. It does not use the words “bad faith.”