North Carolina Tenant-Landlord Law

Fair Housing

The Fair Housing Act was created in order to ensure that everyone is treated equally during the housing process. It protects tenants from discrimination when seraching for a rental property. At the federal level the Fair Housing Act protects the following classes…

• Race
• Color
• National Origin
• Religion
• Sex
• Familial Status
• Disability

Learn about fair housing at the federal level here /landlord-must-know-fair-housing/

North Carolina protects the same categories as federal law (N.C. Gen. Stat. § 41A.

Security Deposits

• The collection of security deposits in North Carolina isn’t required, but most landlords require them to prove a tenant’s financial stability and guarantee a payment for damaged property.
• It must not amount to more than two weeks’ rent for week-to-week tenants, more than 1.5 months for monthly tenants, and no more than 2 months rent for fixed-term leases. (NCGS § 42-51)
• The landlord has 30 days post move out to return the deposit to the tenant, unless there are apparent damages (in excess of normal wear and tear) upon which a notice must be sent within 30 days, with a final determination within 60 days after termination. (NCGS § 42-52)
  • The landlord may also withhold funds for unpaid rent, unpaid utility bills, a violation of the lease, legal costs, and/or costs to remove and store tenant's possessions after eviction. (NCGS § 42-51)
• The funds must be deposited in a licensed North Carolina bank or insurance company that the tenant is notified of within 30 days of the start of the lease (NCGS § 42-50)
• In North Carolina, there are not statutes mandating interest owed upon deposits. Additionally, funds may be commingled with personal assets, but it is not recommended.

Rent and Late fees

• There is no statute regarding when rent is due (at the beginning of the month or at the end).
• In North Carolina, there is a grace period of 5 days. (NCGS § 42-46(a)) There is no required late fee, but if a landlord wishes to charge one, there are restrictions:
  • If a tenant is on a month-to-month lease agreement, a late of fee of $15 or 5% of the monthly rent (whichever is greater) may be charged (NCGS § 42-46(a)(1))
  • If a tenant is on a week-to-week lease agreement, a late fee of $4 or 5% (whichever is greater) may be charged (NCGS § 42-46(a)(2))
• Tenants are not allowed to withhold rent for failure to provide essential services (water, heat, etc.) unless they are legally granted (NCGS § 42-44)
• There is no rent control or limit required by the state.

Notices and Entry

• There are no statutes in North Carolina mandating notice prior to entering a property for repairs or showings, but 24 hours is recommended.
• If a tenant is on a fixed-end lease agreement, there is no notice required for early termination.
  • If a tenant is on a year-to-year lease agreement, the early termination notice must be issued one month or more before the end of the current year of the tenancy (NCGS § 42-14)
  • If a tenant is on a month-to-month lease agreement, the termination notice must be issued 7 days prior to being evicted early (NCGS § 42-14)
  • If a tenant is on a week-to-week lease agreement, the termination notice must be issued 2 days prior to being evicted early (NCGS § 42-14)
• There is no statute regarding emergency entry.

Disclosures

• A landlord is required to disclose any known presence of lead paint on the property. If there is a presence of lead paint in the unit or common area, the lease must include a federally-approved attachment on lead poisoning prevention.
• Landlords are required to disclose any structural damage on the property related to mold, water, fire, smoke, or insects. Click here for mold pamphlet.
• The State of North Carolina Mineral and Oil and Gas Rights Mandatory Disclosure Statement mandates that all sellers of new or existing properties to disclose whether the mineral, oil, and gas rights for the property are owned by someone other than the seller. See disclosure form here.

North Carolina Eviction Laws

• When it is failure to pay rent, the tenant has 10 days to pay you otherwise the eviction notice can be filed with the courts.
• When there is another lease violation (e.g. subletting), the tenant has to resolve the violation immediately after the eviction notice is served. Otherwise the eviction notice will be filed with the courts.

For more information on North Carolina Landlord Tenant laws please visit their website here.

As the situation with COVID-19 continues to evolve, the moratorium on foreclosures and evictions will continue to impact millions of rental properties across the country. For the most up to date information on this legislation, as well as to see if your city or county has additional directives in place, please contact your local representative.