Some rental situations call for greater flexibility, such as a tenant who is between jobs or simply not ready to make a long-term commitment. In these cases, a month-to-month agreement can make things easier for everyone. Under this structure, the tenancy renews every 30 days, and either party may terminate it with proper notice.
A North Carolina month-to-month lease agreement offers that kind of short-term convenience while still following the state’s landlord-tenant rules. Even though this type of arrangement creates a tenancy at will, the agreement must still include all required North Carolina disclosures and meet state standards.
Disclosures (3)
North Carolina requires landlords to provide several disclosures, each designed to keep tenants informed and ensure the property is safe and operable. You should include these in every month-to-month residential rental agreement.
- Lead-based paint: Federal law mandates landlords to disclose any known information about lead-based paint and its hazards in all rentals built before 1978.
- Security deposit receipt: You must give your tenant a receipt for their security deposit payment within 30 days of move-in, including the name and location of the bank holding the funds (N.C. Gen. Stat. § 42-50).
- Accidental damage notice: State law requires you to include a statement regarding liability for accidental damage in your North Carolina month-to-month lease template (N.C. Gen. Stat. § 42-10).
Optional Disclosures and Addenda
While not required, these optional disclosures can help prevent any confusion and strengthen your rental agreement.
Asbestos: Informs tenants of any known asbestos in the unit and provides tips to avoid or limit exposure.
Bed bugs: Alerts tenants to any known or suspected bed bug infestations in the unit or adjacent units.
Landlord’s name and address: Provides the name and contact information of the landlord or property manager.
Returned check fee: Discloses the fees associated with returned checks. In North Carolina, state law caps returned check fees at $35 per check.
Medical marijuana use: Outlines the guidelines for the use of medical marijuana on the property.
Mold disclosure: Informs tenants of any known or suspected mold issues in the unit, as well as strategies for remediation.
Move-in checklist: Details the unit’s condition at move-in, including any existing damage.
Non-refundable fees: Details any fees that you will not refund or return at the end of the lease.
Shared utilities: Explains how you divide utility costs between any tenants that share a utility meter.
Smoking: Details the smoking policy for the rental, including any designated smoking areas on the property.
Additional North Carolina Month-to-Month Lease Laws
Beyond disclosures, month-to-month rentals in North Carolina must comply with several state rules that dictate how the tenancy operates. These laws outline what landlords can do, how rent changes work, and what happens when issues arise.
Notice to Terminate a Month-to-Month Agreement
One of the most significant benefits of a month-to-month lease agreement is the flexibility, and North Carolina offers both landlords and tenants some of the most flexible terms around. Here’s what you need to know about terminating your rental agreement.
Required notice for tenant: Tenants must provide their landlord with 7 days’ written notice to terminate their agreement (N.C. Gen. Stat. § 42-14).
Required notice for the landlord: North Carolina landlords must also give 7 days’ notice to tenants to end the lease (N.C. Gen. Stat. § 42-14).
Laws Governing Rent Increases
North Carolina has no statewide rent control or rent stabilization laws. That means you can increase rent at your discretion, as long as you provide at least 7 days’ written notice before the increase takes effect and the increase is not retaliatory or discriminatory.
If your property is in a municipality that operates a rental registry, ensure your registration is up to date before making any changes.
Lease Violations and Eviction
Even in a flexible month-to-month setup, problems can still arise. When rent goes unpaid or the terms of the agreement are breached, North Carolina law outlines the steps a landlord must take before proceeding with eviction.
Missed rent payment: If a tenant fails to pay rent, the landlord can issue a 10-day Notice to Pay or Quit before filing for eviction (N.C. Gen. Stat. § 42-3).
Lease violation: For violations other than nonpayment, landlords may serve a Notice to Comply or a Notice to Vacate, depending on the severity of the violation (N.C. Gen. Stat. § 42-26).
Lease abandonment: If a tenant leaves early, they may still owe rent for the remainder of the period until the property is re-rented, minus the landlord’s duty to mitigate losses.
Self-help evictions: All forms of self-help evictions are illegal in North Carolina. All evictions must go through the court process. (N.C. Gen. Stat. § 42-25).
Rent Payment Laws
Rent rules can vary by state, and North Carolina has its own guidelines for late fees, grace periods, and when tenants can withhold payment. These laws help shape how landlords handle rent each month.
Rent control/stabilization: Rent control or stabilization does not exist at the state level in North Carolina.
Late rent fees: Late fees cannot exceed $15 or 5% of the monthly rent, whichever is greater, and landlords may charge only after the rent is 5 days past due (N.C. Gen. Stat. § 42-46).
Grace period: North Carolina law requires landlords to offer tenants a 5-day grace period for late rent (N.C. Gen. Stat. § 42-46(a)).
Tenant’s right to withhold rent: Tenants may not withhold rent on their own but can file a complaint for habitability issues or pursue rent abatement through the courts (N.C. Gen. Stat. § 42-44(c)).
Pet rent laws: Landlords may charge a pet deposit or a monthly pet rent, provided the amount is reasonable and clearly outlined in the lease agreement template.
Security Deposits
Security deposits in North Carolina are subject to specific rules that determine how much landlords can collect, how they hold the funds, and when they should return the deposit. These guidelines help protect both landlords and tenants.
Maximum amount: For month-to-month rentals, the maximum security deposit is 1.5 months’ rent (N.C. Gen. Stat. § 42-51(b)).
Deposit receipt: Landlords must disclose the bank or institution where the funds are within 30 days of receiving the deposit (N.C. Gen. Stat. § 42-50).
Interest payments: North Carolina does not require landlords to pay interest on security deposits.
Security deposit return: Landlords must return their tenant’s security deposit within 30 days after the tenant moves out (N.C. Gen. Stat. § 42-52).
Deductions: Additionally, landlords have 30 days to provide tenants with an itemized list of deductions if they keep any part of the security deposit to cover unpaid rent or damage beyond normal wear and tear (N.C. Gen. Stat. § 42-52).
Property Access Laws
Landlords occasionally need to enter the rental for repairs or inspections, and North Carolina has guidelines for how they should do so. These rules help balance tenant privacy with property maintenance.
Advance notice: North Carolina does not specify a minimum notice period for landlord entry, but they should always give tenants reasonable notice before entering the property.
Immediate access: Landlords may enter without notice during an emergency or if the tenant has abandoned the property.
Harassment: If a landlord enters repeatedly without permission, fails to provide reasonable notice, or misuses access rights, it could constitute landlord harassment. In this case, the tenant potentially has grounds to terminate the agreement.
