Key Takeaways
- Security Deposit Limits are Set by Lease Term: North Carolina law restricts the maximum security deposit amount based on the tenancy length: 2 weeks' rent for week-to-week, 1.5 months' rent for month-to-month, and 2 months' rent for longer terms.
- No Rent Control or Specific Entry Notice Required: North Carolina is a landlord-friendly state with no rent control laws, allowing landlords to raise rent without restriction, and state law does not require advance notice before landlord entry, though reasonable notice is a best practice.
- Implied Warranty of Habitability is Required: Landlords are legally required to provide and maintain a fit and habitable property, including making necessary repairs promptly and ensuring all essential systems (electrical, plumbing, heating) are in good working order.
Are you renting out a property in Charlotte or any other part of North Carolina? If so, you should familiarize yourself with the North Carolina landlord-tenant law. This is primarily contained under Chapter 42 of the state’s General Statutes.
This knowledge will ensure that you stay legally compliant on all aspects of landlording. Whether when charging security deposits, executing the Eviction Process in North Carolina, managing a Security Deposit Refund, or anything in between.
And as you probably know, you can’t feign ignorance as a legal defense in court. As such, the only respite you have is to stay legally compliant to avoid potential lawsuits.
In this blog by Rentfy Property Management, you’ll learn important basics to keep in mind in this regard.
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Disclosures Landlords Must Provide to Tenants in North Carolina
There are certain disclosures that landlords have to provide to residents before they sign a lease.
In North Carolina, they are as follows:
- Lead-Based Paint: Concentrations of lead-based paint must be disclosed if the building you’re renting out was built before 1978.
- Late Fees: Landlords must disclose the amount of late fees they will be charging.
- Water Contamination: If water contamination levels exceed the state guidelines, that must be disclosed.
- Security Deposit Holding: Landlords must disclose the bank or institution that they’re using to store the resident’s security deposit or provide the bond for it.
- Utility Fees: Landlords must disclose non-optional fees such as water or sewer services, if applicable, for an action for ejectment based upon nonpayment of base rent.
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Landlord Rights and Responsibilities in North Carolina
In North Carolina, landlords automatically obtain the following rights once a resident moves in:
- A right to require the resident to sign the lease before moving in.
- A right to screen prospective residents based on objective, consistent, and fair criteria.
- A right to Evict a resident who violates any term of the lease, following the proper legal process.
- A right to reject a resident’s lease renewal request after the current one has expired.
- A right to require security deposits from residents before they can move in, within the state limits (see below).
- A right to terminate a periodic lease after meeting the advance notice requirements (e.g., seven days for a month-to-month tenancy).
- A right to Raise rent without any restrictions, as North Carolina has banned rent control.
- A right to enter the rented premises to perform crucial duties, though reasonable notice is strongly recommended.
Similarly, you’ll automatically obtain the following responsibilities after the resident has moved into your property:
- Maintain the unit to the required habitability standards (fit and habitable condition).
- Make repairs within a reasonable time after getting proper notification from the resident.
- Draft a proper rental agreement that aligns with all applicable federal, state, and local laws.
- Follow the proper Eviction Process when removing a resident from the unit.
- Hold residents’ security deposits per the state requirements (in a trust account or secured by a bond).
- Only access the rented unit for legitimate reasons, upholding the tenant's right to quiet enjoyment.
- Provide a 5-day mandatory grace period before enforcing a late fee, per G.S. 42-46(a).
Tenant Rights and Responsibilities in North Carolina
Residents, too, automatically obtain certain rights and responsibilities after moving into rented premises.
The resident obtains the right to:
- Live in a habitable unit, meeting all applicable building and housing codes.
- Go through a proper eviction process, including a 10-day notice to pay rent or quit for non-payment.
- Get a refund of the security deposit within 30 days after moving out, or an interim itemized list of deductions with the final accounting provided within 60 days.
- Be treated per the state’s anti-discrimination laws, as outlined in the Guide to the Fair Housing Act in North Carolina.
- Get a five-day mandatory grace period before the landlord can enforce a late fee.
- Receive some legally required disclosures before moving into the rental.
- The right to “quiet enjoyment” of the premises.
The list of responsibilities for North Carolina residents includes the following:
- Maintain the unit’s safety and building codes, to the extent they impact the unit's cleanliness and upkeep.
- Maintain the cleanliness and sanitary standards.
- Promptly notify the landlord of any needed repairs to the unit in writing.
- Not cause unreasonable disturbance in the unit.
- Not cause damage exceeding normal wear and tear to the unit.
- Replace batteries in battery-operated smoke alarms as needed during the tenancy, unless otherwise agreed in writing.
Overview of Key North Carolina Landlord-Tenant Laws
Landlord Entry
Landlords can access rented premises for certain legitimate reasons, such as inspections, emergencies, or showing the unit to prospective residents or buyers. Unlike most other states, North Carolina law does not specify a minimum advance notice requirement for entry.
This means you can technically enter the unit without notice, provided it is for a legitimate reason. However, to avoid potential harassment claims and uphold the tenant’s right to quiet enjoyment, it is widely recommended to provide at least 24 hours' notice and to agree on minimum notice requirements in the lease.
Fair Housing Laws
As a landlord in North Carolina, you must treat residents fairly, regardless of certain protected classes. The federal Fair Housing Act protects classes including race, color, national origin, religion, sex, familial status, and disability.
North Carolina’s Fair Housing Act mirrors these federal protections. For instance, according to US Census data, approximately 22% of North Carolina's population identifies as Black or African American, and around 10.7% identify as Hispanic or Latino. Landlords must ensure their rental policies and tenant screenings do not result in discriminatory practices against any of these or other protected groups.
The law does not, however, apply to all housing types. Exceptions include homes operated by religious organizations, and owner-occupied buildings with 4 or fewer units.
Rent Increases
There is no rent control law in North Carolina. Also, no local jurisdictions can enact rent control due to a state law prohibiting such a move.
Because of this, there is no restriction for landlords on how much they can raise rent by or even the frequency at which they can do so, provided it is not for a discriminatory or retaliatory reason.
For a month-to-month lease, landlords are generally advised to provide at least a 7-day notice of a rent increase, though longer notice periods like 30 days are a best practice. For a fixed-term lease, the rent cannot be increased until the lease expires. The proper notice required for ending a periodic tenancy is covered in the XX Day Notice to Quit in North Carolina article.
Security Deposits
Landlords in North Carolina can charge security deposits, but you must follow specific limits based on the lease term, as detailed in the North Carolina Security Deposit Laws article.
- Week-to-week lease: The maximum security deposit is 2 weeks’ rent.
- Month-to-month lease: The maximum security deposit is 1.5 months’ rent.
- Lease longer than month-to-month: The maximum security deposit is 2 months’ rent.
- The landlord must also place the deposit in a trust account or secure it with a bond.
You can learn more about the allowed uses, return timeline, and itemized deduction requirements in the North Carolina Security Deposit Refund guide.
Conclusion
Now you’re familiar with the essential basics of the North Carolina landlord-tenant law. This can help you stay compliant and avoid potential conflicts and misunderstandings with your residents.
If you have a question or need expert help in managing your Charlotte rental property, look no further than Rentfy Property Management. We are a full-service property management company that specializes in residential and commercial property management.
Legal Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that laws pertaining to property management may change rendering this information outdated by the time you read it.