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North Carolina

A North Carolina lease agreement is a legal document that allows a tenant to rent a property from a landlord under specific terms. This agreement typically includes the identities of both parties, a description of the property, pet policies, safety information, and details regarding the security deposit.

SimpleBasicLease_North-Carolina

SimpleBasicLease_North-Carolina

Rental Lease Laws Overview

In North Carolina, there are several key regulations governing lease agreements:

  • Rent Control: Not applicable in North Carolina.
  • Limit on Late Fees: Yes, late fees are regulated.
  • Late Fees in Rental Agreement: Must be explicitly stated in the lease.
  • Grace Period: Yes, a grace period is provided.
  • License Required for Landlord: No license is required for landlords.

It is advisable for landlords to use a rental application to screen potential tenants before finalizing a lease agreement.

Required Lease Disclosures

Landlords must include specific disclosures in lease agreements:

  • Lead Paint Disclosure: Required if the property was built before 1978, as older properties may contain lead-based paint.
  • Notice of Abandoned Personal Property: Tenant personal property is considered abandoned 5 to 7 days after lawful repossession and notice by the landlord, if the tenant fails to respond.
  • Security Deposit Notice: Landlords must notify tenants within 30 days of the lease’s start about the name and location of the financial institution holding the security deposit.
  • Late Fees Disclosure: Any late fees charged must be explicitly stated in the lease agreement.

Security Deposit

The regulations regarding security deposits in North Carolina include:

  • Maximum Amount:
    • For week-to-week tenancy: no more than two weeks’ rent.
    • For month-to-month tenancy: no more than one-half month’s rent.
    • For longer leases: no more than two months’ rent.
  • Receipts: Not specified.
  • Interest Payments: Landlords are not required to pay interest on security deposits but may retain 1% interest annually if the deposit is in an interest-bearing account to cover administrative expenses.
  • Bank Account: Security deposits must be held in a trust account at a licensed and insured North Carolina bank, separate from the landlord’s personal assets.
  • Returning Requirements: Security deposits must be returned within 30 days after the lease ends or is terminated.
  • Withholding Rules: Landlords may withhold security deposit funds for damages, unpaid rent, re-renting costs, storage fees after eviction, and court costs, but cannot withhold for normal wear and tear.

Rent Payments

The guidelines for rent payments are as follows:

  • Laws: Rent is due as specified in the lease agreement.
  • Rent Control: Prohibited; no local regulation of rent for privately owned properties.
  • Late Fees and Grace Period:
    • Weekly lease: $4 or 5% of weekly rent, whichever is greater.
    • Monthly lease: $15 or 5% of monthly rent, whichever is greater.
    • A five-day grace period is provided; if rent remains unpaid after this period, landlords can initiate eviction with a 10-day notice to quit.
  • Withholding Rent: Tenants may pay utility companies directly and deduct the cost from future rent if the landlord neglects their utility or maintenance responsibilities under the lease.

Landlord Right of Entry

In North Carolina, landlords do not have a legal requirement to give notice before entering a property, but providing reasonable notice can be a courtesy. Additionally, tenants experiencing domestic violence may request a lock change. If the landlord does not comply, tenants may change the locks but must provide a new key to the landlord within 2 days.

Property Repairs

Landlords have specific responsibilities regarding property repairs:

  • Landlord Responsibilities: Landlords must maintain rental units to meet basic health and safety standards and address repair requests promptly.
  • Tenant Repairs: Tenants are responsible for maintaining utilities as required by applicable building and housing codes.
  • Abandonment: There is no specific state-mandated limit on abandonment.

Terminating a Lease

For month-to-month tenancies, either party can terminate the lease by providing a 7-day written notice to the other party. Regarding unclaimed property, after executing a writ of possession, landlords must retain any abandoned personal property for at least seven days. If the property is valued at less than $500, the retention period is reduced to five days. After these periods, the landlord may dispose of the property.

Statutes

FAQs

In North Carolina, landlords must include several required lease disclosures, such as a Lead Paint Disclosure for properties built before 1978, a Notice of Abandoned Personal Property, a Security Deposit Notice detailing where the deposit is held, and a Late Fees Disclosure if applicable.

In North Carolina, the maximum security deposit a landlord can charge is two weeks’ rent for week-to-week tenancies, one-half month’s rent for month-to-month tenancies, and two months’ rent for longer leases.

A landlord in North Carolina must return the security deposit to the tenant within thirty (30) days of the lease’s end or termination, unless they are withholding funds for specific reasons such as damages or unpaid rent.

No, North Carolina prohibits rent control, meaning that no city or county can regulate rent for privately owned residential or commercial properties.

In North Carolina, if rent is late, landlords can charge a late fee of $4 or 5% of the weekly rent for weekly leases, and $15 or 5% of the monthly rent for monthly leases. There is also a five-day grace period before landlords can initiate eviction proceedings.

Tenants in North Carolina have the right to request necessary repairs to maintain a habitable living environment. Landlords are responsible for addressing repair requests promptly and ensuring that rental units meet basic health and safety standards.

A tenant can terminate a month-to-month lease in North Carolina by providing a written notice of at least seven (7) days to the landlord.

In North Carolina, after executing a writ of possession, a landlord must retain any abandoned personal property for at least seven days. If the property is valued at less than $500, the retention period is reduced to five days before the landlord may dispose of the property.