North Carolina

North Carolina Landlord Tenant Key Rules

Official North Carolina Forms:

 

Security Deposit

TOPIC	RULE
Security Deposit Maximum:	Security deposits can not exceed an amount equal to two weeks’ rent if a tenancy is week to week, one and one-half months’ rent if a tenancy is month-to-month, and two months’ rent for lease terms greater than month-to-month. N.C. Gen. Stat. § 42-51
Security Deposit Interest:	No statute.
Separate Security Deposit Bank Account:	Security deposits shall be deposited in a trust account with a licensed and federally insured depository institution with the state. Landlords may also furnish a bond from an insurance company licensed to do business within the state. N.C. Gen. Stat. § 42-50
Non-refundable fees:	No statute.
Pet Deposits and Additional Fees:	A reasonable, non-refundable pet deposit is permitted. N.C. Gen. Stat. § 42-53
Deadline for Returning Security Deposit:	Deposits must be returned within 30 days of lease termination, unless landlord requires additional time to access damages due to tenant non-compliance of lease. An interim notice of an additional 30-day notice must be provided to the tenant, not to exceed 60 days. N.C. Gen. Stat. § 42-52
Permitted Uses of the Deposit:	See statute. N.C. Gen. Stat. § 42-51
Security Deposit can be Withheld:	Deposits can be withheld due to non-payment of rent or damages incurred to the rental property by non-compliance of the tenant. N.C. Gen. Stat. § 42-51
Require Written Description/Itemized List of Damages and Charges:	Landlords must deliver in writing the itemized list of any damages and mail or deliver to the tenant, along with the balance of the security deposit, no later than 30 days after termination of the tenancy. N.C. Gen. Stat. § 42-52
Receipt of Security Deposit:	No statute.
Record Keeping of Deposit Withholdings:	No statute.
Failure to Comply:	If landlords fail to comply with statute, tenants can sue for wrongful withholding to recover the deposit, damages and attorney fees. Failure to comply forfeits all rights to retain any part of the deposit. N.C. Gen. Stat. § 42-55

Lease, Rent & Fees

TOPIC	RULE
Rent is Due:	No statute. The lease simply expires per the terms in the rental agreement.
Payment Methods:	No statute.
Rent Increase Notice:	No statute.
Late Fees:	The parties may agree to a late fee not inconsistent with the provisions of this statute, to be chargeable only if any rental payment is five (5) calendar days or more late, with the first day being the day after the rent was due. See statute for tiered fees. N.C. Gen. Stat. § 42-46
Application Fees:	No statute.
Prepaid Rent:	No statute.
Returned Check Fees:	For a check on which payment has been refused by the payor bank because of insufficient funds or because the drawer did not have an account at that bank, the check holder may charge and collect a processing fee, not to exceed thirty-five dollars ($35.00). N.C. Gen. Stat. § 25-3-506
Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.):	Tenants are not permitted to withhold rent for any reason unless they are legally permitted to do so via judgement from the court or civil magistrate. N.C. Gen. Stat. § 42-44
Tenant Allowed to Repair and Deduct Rent:	No statute.
Self-Help Evictions:	Self-help evictions are prohibited by law.
Landlord Allowed to Recover Court and Attorney’s Fees:	Landlords are permitted to charge and recover reasonable attorney and court fees. See statute for specification. N.C. Gen. Stat. § 42-46
Landlord Must Make a Reasonable Attempt to Mitigate Damages to Lessee, including an Attempt to Re-rent:	No statute.

Notices and Entry

TOPIC	RULE
Notice to Terminate Tenancy:	No notice is typically needed as the lease agreement simply expires. If a year-to-year lease, a notice to quit must be provided at least one month or more from the end of the term. N.C. Gen. Stat. § 42-14
Notice to Terminate a Periodic Lease – Month-to-Month:	The prevailing party must provide at least seven (7) days’ notice to terminate a lease. If terminating a lease for a manufactured home, at least 60 days’ notice is required. N.C. Gen. Stat. § 42-14
Notice to Terminate a Periodic Lease – Week-to-week:	The prevailing party must provide at least two (2) days’ notice to terminate a lease. N.C. Gen. Stat. § 42-14
Notice to Terminate Lease due to Sale of Property:	Active lease will remain valid until its original expiration and the new owner must honor the existing terms of the lease.
Notice of date/time of Move-Out Inspection:	No statute.
Notice of Termination for Nonpayment:	Termination of lease may be implemented upon failure to pay the rent within 10 days after a demand notice is made by the lessor. N.C. Gen. Stat. § 42-3
Notice for Lease Violation:	Termination of tenant can be immediate if there is non-compliance of the lease agreement. N.C. Gen. Stat. § 42-26
Required Notice before Entry:	No statute, but reasonable notice is presumed (24 hours typically).
Entry Allowed with Notice for Maintenance and Repairs:	No statute, but reasonable notice is presumed (24 hours typically).
Emergency Entry Allowed without Notice:	No statute.
Entry Allowed During Tenant’s Extended Absence:	No statute.
Entry Allowed with Notice for Showing the Property:	No statute, but reasonable notice is presumed (24 hours typically).
Notice to Tenants for Pesticide Use:	No statute.
Lockouts Allowed:	Lockouts are prohibited. N.C. Gen. Stat. § 42-25.9
Utility Shut-offs Allowed:	Shutting off a rental unit’s utilities is prohibited. N.C. Gen. Stat. § 42-25.9
Electronic Notices Allowed:	Electronic notices satisfy the requirement of delivering information in writing as long as the information and electronic notice can be retained by the recipient. N.C. Gen. Stat. § 66-318

Disclosures

• Name and Addresses: Must disclose owner and agent contact info. (N.C. Gen. Stat. § 42-46)
• Copy of the Lease: Tenant must receive a lease copy. (Standard practice)
• Domestic Violence Situations: May terminate lease early with proof. (N.C. Gen. Stat. § 42-45.1)

Duties

Landlord’s Duties

• Compliance: Must comply with housing codes. (N.C. Gen. Stat. § 42-42)
• Repairs: Maintain safe and habitable premises. (N.C. Gen. Stat. § 42-42)
• Common Areas: Keep in safe condition. (N.C. Gen. Stat. § 42-42)
• Maintenance: Ensure essential systems work. (N.C. Gen. Stat. § 42-42)
• Garbage: Provide for waste removal. (N.C. Gen. Stat. § 42-42)

Tenant’s Duties

• Cleanliness: Keep premises clean. (N.C. Gen. Stat. § 42-43)
• Trash: Proper disposal of waste. (N.C. Gen. Stat. § 42-43)
• Plumbing: Use responsibly. (N.C. Gen. Stat. § 42-43)
• Appliances: Use in a reasonable manner. (N.C. Gen. Stat. § 42-43)
• Damage: Do not willfully or negligently damage property. (N.C. Gen. Stat. § 42-43)
• Quiet Enjoyment: No excessive noise. (Common law)
• Subleasing: Subject to lease terms. (Lease-specific)
• Retaliation: Prohibited. (N.C. Gen. Stat. § 42-37.1)
• Lead Disclosure: Federal law requirement.