As a landlord, you obtain several rights under North Carolina landlord-tenant laws, including the right to evict a tenant for a lease violation and withhold part or all of a tenant’s security deposit for legitimate reasons.
Both parties to the lease must also abide by certain obligations after establishing a rental agreement.
If you’re looking to become a landlord or are already one, it’s imperative to understand the basics of the state’s landlord-tenant laws. This will ensure you operate within the confines of the law and avoid potential hefty legal and/or financial repercussions.
The following article by RedStone Property Management is a guide to the North Carolina landlord-tenant law.
Required Landlord Disclosures in North Carolina
In North Carolina, landlords must provide tenants with certain information before they can move in. The information includes the following:
Concentrations of lead-based paint in houses built before 1978.
Late fees for rent payments (if any).
Notice of water contamination that exceeds the state’s guidelines.
Name and address of the bank or financial institution that’s holding the tenant’s security deposit.
Tenant’s Rights and Responsibilities in North Carolina
Tenants in North Carolina have the following rights as granted under Chapter 42 of the State’s General Statutes. A right to:
Live in a property that meets the state’s basic safety, health, and building codes.
Have requested repairs made within a “reasonable time” after providing the landlord with written notice.
Judicial eviction process that isn’t retaliatory after a tenant exercises certain rights or based on an FHA-protected characteristic.
Have the security deposit returned within 30 days after moving out, less any allowable deductions.
Terminate a periodic tenancy agreement after providing the landlord with proper advance notice of their intentions.
A 5-day grace period for payment of rent before a late fee can be enforced.
Be provided with the aforementioned disclosures before moving in.
North Carolina tenants have the following responsibilities that they must abide by:
Comply with all habitability requirements, such as health, safety, and building codes.
Keep the unit clean and sanitary and keep fixtures in such condition.
Inform the landlord of any needed repairs in the unit within a reasonable time.
Inform the landlord in writing of any required repairs to the smoke or carbon monoxide detectors.
Not cause disturbance to the peace and quiet of other tenants and neighbors.
Not cause deliberate, negligent, or reckless damage to the property.
Landlords’ Rights and Responsibilities
Landlords have the following rights under the North Carolina landlord-tenant rights. A right to:
Be notified of required repairs within a reasonable time.
Evict a tenant who fails to honor a term(s) of the rental agreement.
Collect a security deposit from new tenants, and make allowable deductions after they move out.
Terminate a periodic rental agreement after serving the tenant with proper notice.
Hold a tenant who breaks their lease without a legal justification liable for the rent remaining under the lease.
Raise the rent amount by whatever amount and as frequently as you’d want.
Enter a tenant’s rented premises to address issues like repairs and maintenance, or inspections.
Draft a proper lease agreement and enforce all of its terms.
Not renew the lease of a tenant after it expires without having to give a reason or justification.
Reject a tenant’s application if it fails to meet the selection criteria. The criteria must, however, abide by all applicable laws, including anti-discrimination laws.
Similarly, the NC landlord-tenant law holds landlords to certain obligations, including:
Make repairs within a “reasonable time” after notification by a tenant.
Obtain a court order to be able to remove a tenant from their rented premises.
Not retaliate against a tenant who exercises their legal right, such as reporting the landlord for uninhabitable living conditions.
Abide by the NC security deposit laws, including returning the deposit within 30 days after moving out.
Provide the tenant with a proper notice before terminating their periodic tenancy.
Make a reasonable effort to re-rent the unit after the original tenant breaks their lease unjustifiably.
Not discriminate against a tenant based on the characteristics outlined in the state’s fair housing laws.
Provide the tenant with a 5-day grace period before enforcing a late fee (if any).
An Overview of the Landlord-Tenant Laws in North Carolina
Landlord Right to Entry
There are no laws in North Carolina that specifically outline property access rights for landlords and tenants. Consequently, as a landlord, you can enter the tenant’s rented premises without any notice for legitimate reasons. The only exception to this is if the lease terms state otherwise.
Examples of legitimate reasons for entry include the following:
To inspect the unit.
Respond to emergencies.
Show the unit to prospective tenants or buyers.
Carry out needed repairs or maintenance.
Fair Housing Act (FHA)
Landlords must treat tenants fairly regardless of certain protected classes. The classes include race, color, sex, religion, familial status, nationality, and disability.
In North Carolina, discrimination complaints are handled by the state’s Administrative Hearings’ Civil Rights Division.
Rent Increases
There is no rent control law in North Carolina. State law also makes it illegal for local jurisdictions from creating their own rent control law. Consequently, landlords can raise rent by any amount and as frequently as they choose.
There are also no advance notice requirements before raising rent. You and your tenant can, however, agree on the minimum notice period before a rent raise in the rental agreement.
Security Deposits
Landlords in North Carolina must abide by certain rules when requiring security deposits, including:
Abiding by the maximum amount, which is dependent on the lease term. For example, for month-to-month tenants, the maximum must not exceed the equivalent of 1.5X the monthly rent.
Holding the tenant’s deposit in a trust account or post it as a surety bond.
Returning it to the tenant, less any allowable deductions, within 30 days.
Bottom Line
Understanding the basics of the North Carolina landlord-tenant law is key to ensuring you stay legally compliant for a solid landlord-tenant relationship. For further clarification on this or any other aspect of landlording, please look no further than RedStone Property Management.
We are a trusted and reliable property management company servicing Burlington, Mebane, and the surrounding areas. Get in touch to know more!
Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change, rendering this information outdated by the time you read it.
