A North Carolina month-to-month rental agreement is a contract (not necessarily in writing) which allows a tenant to rent property from a landlord, for one month at a time, in exchange for a fee (“rent”). The rental renews monthly, until either party gives proper notice to end it.
Basics of a North Carolina Month-to-Month Rental Agreement
In North Carolina, a landlord and tenant create a month-to-month lease by agreeing to rent a property according to acceptable terms. Written rental agreements are clearer and legally stronger, but oral leases are legal in a month-to-month context.
Parties under a month-to-month lease enjoy full rights under North Carolina landlord-tenant law. The tenant must use the property in a responsible way and pay rent on time. The landlord must keep essential features of the property in habitable condition, and protect the tenant’s quiet enjoyment of the lease.
The main difference between a month-to-month lease and a fixed-term lease is that month-to-month leases can be terminated (with proper notice) by either party for any reason without penalty. Landlords also can usually modify terms from one month to the next, again with proper notice.
Required Disclosures for Month-to-Month Rentals in North Carolina
North Carolina landlords may not rent a property out without making the following disclosures to a potential tenant, as relevant:
- Late Fee Disclosure – North Carolina only enforces late fees which are disclosed and agreed in the lease.
- Security Deposit Holdings Disclosure – North Carolina requires landlords to place security deposits into a trust account that is licensed and federally insured.
- Water Contamination Disclosure – North Carolina landlords who charge tenants for water or sewage utilities must provide notice of any known contaminant levels exceeding the guidelines provided by the state.
- Lead-Based Paint – Landlords must provide an EPA-approved disclosure and informational pamphlet to tenants renting any property built before 1978.
Required Notice To End a Month-to-Month Rental in North Carolina
North Carolina lets both the landlord or tenant terminate a month-to-month lease with at least seven days of advance notice. In general, any reason that isn’t landlord retaliation is a legal and valid grounds for ending a month-to-month lease.
North Carolina requires written notice to end a month-to-month lease.
Required Notice To Raise the Rent on a North Carolina Month-to-Month Lease
North Carolina requires that notice for a rental increase be delivered in writing, but doesn’t specify a particular timeframe for that notice. This means in most cases it’s reasonable for a landlord to keep the same standard advance notice provided for termination or other major lease changes, which in North Carolina is seven days.
Eviction in North Carolina Month-to-Month Rentals
North Carolina tenants may face eviction for violating a month-to-month lease or remaining on the property after the notice period allowed by a valid termination. Evictions in North Carolina typically take one to three months.
For more information on the eviction process in North Carolina, click here.
Sources
- 1 N.C. Gen. Stat. § 42-14
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A tenancy from year to year may be terminated by a notice to quit given one month or more before the end of the current year of the tenancy; a tenancy from month to month by a like notice of seven days; a tenancy from week to week, of two days.
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