A North Carolina lease agreement does more than just list rent and rules; it sets the tone for the entire landlord-tenant relationship. From Chapel Hill to Wilmington, the right lease agreement keeps expectations clear, protects your property, and helps you avoid costly disputes down the road.
Disclosures (3)
Along with a North Carolina lease agreement, there are certain disclosures that a landlord is required to provide. Providing this information up front helps keep everyone on the same page and limits landlord liability.
- Lead-based paint: Federal law requires landlords to inform tenants of any lead-based paint and its hazards in homes built before 1978.
- Security deposit receipt: Landlords must provide tenants with a receipt for their security deposit within the first 30 days after the lease begins. This receipt must also include details of the bank that holds the deposit funds (G.S. § 42-50).
- Accidental damage notice: The state requires a statement about liability for accidental damage if applicable to the lease (G.S. § 42-10).
Optional Disclosures and Addenda
Although not required by law, landlords should consider including these additional disclosures that help protect both the tenant and the landlord.
Asbestos: Informs tenants about any known or potential asbestos risks in the rental and provides guidance on how to minimize their exposure.
Bed bugs: Informs tenants if the unit or any adjacent units have a history of bed bug infestation. It also reminds tenants of the importance of reporting any suspected infestation immediately.
Landlord’s name and address: Provides the tenant with current contact information for the landlord, for ease of communication. Most landlords typically include additional information, such as a phone number.
Returned check fees: Outlines the fees for a returned check. In North Carolina, this fee is limited to $35 per check.
Medical marijuana use: Specifies the rules surrounding the use of medical marijuana on the property.
Mold disclosure: Informs tenants of any known or suspected mold issues in the unit, which may help protect the landlord down the road.
Move-in checklist: Takes a detailed inventory of the current state of the unit. Landlords can use this list at move-out to compare and make a note of new property damage.
Non-refundable fees: Any non-refundable fees not agreed to by the tenant in the lease may be refunded upon lease termination. Always disclose any fees, especially non-refundable ones, in the lease.
Shared utilities: If landlords split utilities among tenants, they must disclose how they will divide the charges.
Smoking: Outlines the unit’s smoking policy, including designated smoking areas.
Consequences of Not Including Mandatory Disclosures
Failure to provide necessary disclosures can lead to trouble for the landlord. Whether financial or legal penalties, failing to make these disclosures never ends well for anyone. Lead-based paint hazards are significant to disclose, as these fines can be steep.
Security Deposit Regulations in North Carolina
Maximum amount: For leases longer than 2 months in length, landlords may charge up to 2 months’ rent as a security deposit. For a month-to-month lease, this amount drops down to 1.5 months’ rent (G.S. § 42-51(b)).
Deposit receipt: Landlords must provide tenants a receipt for their security deposit, including the amount paid and the financial institution where the deposit is held, within the first 30 days of the lease period (G.S. § 42-50).
Security deposit return: North Carolina landlords must return a tenant’s security deposit, less any deductions, within 30 days of the tenant moving out (G.S. § 42-52).
Deductions: If the landlord will take any deductions from the security deposit, they must provide tenants with an itemized list of these deductions within 30 days of the end of the lease (G.S. § 42-52).
Rent Payment Regulations
Rent control/stabilization: Rent control and rent stabilization do not exist in North Carolina.
Late rent fees: Late rent fees cannot be more than $15 or 5 percent of the monthly rent, whichever is greater (G.S. § 42-46(a)(1)).
Grace period: North Carolina grants tenants a 5-day grace period to pay their rent without penalty (G.S. § 42-46(a)).
Tenant’s right to withhold rent: Tenants are not allowed to withhold rent, even if landlords fail to perform necessary repairs, unless the court has allowed them to do so (G.S. § 42-44(c)).
Violations
Lease violation: If a tenant violates part of their lease, North Carolina landlords may seek a summary ejectment. In this case, the landlord gives the tenant a notice to vacate and may file a complaint with the court if the tenant has not moved out by the specified date (G.S. § 42-26).
Missed rent payment: If a tenant still has not paid their rent by the end of the grace period, landlords have the right to issue a 10-day notice to quit, which tells the tenant they must either pay their past-due rent within 10 days or move out (N.C.G.S.A. § 42-3).
Lease abandonment: If a tenant abandons their lease before the end of its term, they may still be financially responsible for the remaining rent (G.S. § 42-26).
Self-help evictions: Self-help evictions are illegal in the state of North Carolina, and landlords should never attempt to remove tenants themselves. Always go through the proper legal channels for an eviction (G.S. § 42‑25.6).
Terminating a Lease
Standard lease: Under certain circumstances, tenants are allowed to legally end their North Carolina lease agreement early. These conditions include serving on active duty in the military, losing the property to foreclosure, or being a victim of abuse or stalking (G.S. § 42‑45, 42‑45.1, 42‑45.2).
Month-to-month: Either the landlord or the tenant may end a month-to-month lease with 7 days’ notice to the other party (G.S. § 42-14)
Property abandonment: If the tenant leaves behind any property when they move out, the landlord should attempt to make contact and hold the items for 5 days if the value is less than $500, or 7 days if the value is $500 or more (G.S. § 42-25.9)
Renewing a Lease
Notice requirements: For leases that are 1 year or longer, landlords and tenants should provide 30 days’ notice to the other party if they intend not to renew the lease. For month-to-month leases, this notice is 7 days (G.S. § 42-14).
Renewals: Landlords are not required to renew a North Carolina lease agreement.
Landlord’s Access to Property
Immediate access: Landlords do not need to give any notice to tenants to access the property in the event of an emergency.
Notice requirements: While not legally required, landlords should provide at least 24 hours’ notice to tenants before entering a property for any necessary repairs, maintenance, or inspections.
Harassment: Repeatedly entering a property without just cause or without giving any notice may constitute landlord harassment. In such cases, tenants may be able to terminate their lease early without penalty, provided they are legally entitled to do so.
