Days before March, Randy Wood didn't believe he'd be waiting on a check he thought he'd get shortly after the new year.
"My main concern is to get my money back with the amount of time that has gone by," he said.
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Wood, the owner of Knuckle Up Boxing Gym off of Peace Street in Downtown Raleigh, told 5 On Your Side that he moved out of the L Apartment complex off of West Davie Street at the start of the new year. A security deposit check worth $1,860 paid to the apartment complex when he moved there in 2023, has yet to be returned to him.
When asked, property managers told him that a recent company ownership change at the apartment building is causing a delay in when they can pay it back.
More than 50 days have passed since Wood moved out of the building into a home with his wife and kids to Cary. Wood, commenting "that every dollar counts" told WRAL he was conflicted about having to pay an attorney to try and receive money back that should have already been sent to him.
"They explained the former management company withholding security deposits. That the new company Cushman and Wakefield never received them. I expressed that's a company issue not a consumer issue. But they said they wouldn't pay any money they didn't have," Wood said.
What state law says about tenant, landlord payments
North Carolina's Tenant Security Deposit Act establishes a maximum timeline of when landlords are scheduled to pay back tenants:
In either case the landlord in writing shall itemize any damage and mail or deliver same to the tenant, together with the balance of the security deposit, no later than 30 days after termination of the tenancy and delivery of possession of the premises to the landlord.
The NC Real Estate Commission specifically addresses deposit dilemmas in the case of ownership changes:
If the landlord who collected your security deposit transfers ownership of the property to someone else during the term of your lease, they must either refund your security deposit to you, or transfer your deposit to the new owner (after making any allowable deductions) and notify you in writing of the new owner’s name and address. In either case, your deposit must be refunded or notice given to you of the new owner’s name and address within thirty days of the transfer.
Jesse McCoy, director of the Civil Justice Clinic at Duke Law, said the statute is straightforward in protecting tenants' rights. He said that regardless of which entity is in possession of the deposit, tenants are entitled to their returns back within a reasonable window of time.
He adds that this is a common tenant rights issue in cases where management groups take over properties from other companies.
"What they're trying to say is, as soon as we can get the legal issues resolved, we're in a position to do it." McCoy said.
WRAL reached out to the current property managers of The L Apartments, asking the following:
- Are there residents at The L Apartments who recently left, and security deposits may not have been returned back because of operational changes with the property?
- What is being done to remedy this discrepancy?
- Is there a timeline, based on state or other local codes, that the company is trying to stick to?
In a response from a spokesperson with the company, Cushman and Wakefield:
We can confirm that all outstanding security deposit payments have been processed. All affected former residents have been contacted directly with confirmation and payment details. We appreciate their patience and remain committed to promptly handling resident account matters.
Wood has so far filed a consumer complaint with the North Carolina Attorney General's Office, which he was told has been passed to the NC Real Estate Commission.
After our initial interview, Wood told WRAL he was contacted again, saying a deposit could be expected within 10 to 15 business days. He adds he's skeptical about believing so, because he's been told before similar updates, but still hasn't received the deposit.