North Carolina Month-to-Month Lease Agreement

Required Landlord Disclosures (3) 

1. Lead paint: Properties constructed earlier than 1978 may have used lead or lead-based paint hazards. Federal law requires the landlord to notify the tenant of such.

2. Security deposit receipt: The tenant must receive a security deposit receipt indicating the bank where the deposit is held within 30 days after the start of their tenancy (G.S. § 42-50).

3. Accidental damage notice: When relevant, landlords must provide a statement notifying the tenant that they will not be held liable for accidental damage (G.S. § 42-10).

Required Notice to Terminate Month-to-Month Agreement

Required notice for landlord: 7 days (G.S. § 42-14)

Required notice for tenant: 7 days (G.S. § 42-14)

Rent Increase Laws

North Carolina does not permit rent control and stabilization at the state or city level in North Carolina (G.S. § 42‑14.1). In other words, landlords can increase rent at their discretion if they give reasonable notice, generally 30 days.

Rent Payment Laws

Grace period: North Carolina gives tenants 5 days after rent is due to pay before late fees may apply (G.S. § 42-46(a)).

Late rent fees: Landlords can institute late fees in the greater of $15 or 5% of the monthly rent (G.S. § 42-46(a)(1)).

Tenant’s right to withhold rent: The only situation in which a tenant may withhold rent is if the court has deemed it okay (G.S. § 42-44(c)).

Pet rent laws: North Carolina does not have a pet rent law specifying the amount landlords can charge. However, fees should be reasonable (G.S. § 42-53).

Security Deposit Rules

Maximum security deposit: A landlord can charge 150% of the month’s rent as a security deposit for a North Carolina month-to-month lease agreement. However, security deposits should not exceed two months’ rent for leases longer than two months (G.S. § 42-51(b)).

Security deposit receipt: Tenants must receive a receipt detailing the total paid for the security deposit and the bank’s location no more than 30 days after the first day of tenancy (G.S. § 42-50).

Deduction tracking: After the lease ends, landlords must send out an itemized list of security deposit deductions, if applicable, within 30 days (G.S. § 42-52).

Returning a tenant’s security deposit: Landlords must return a tenant’s security deposit, minus any deductions, within 30 days of the tenant’s last day at the property (G.S. § 42-52).

Pet deposit rules: Landlords can set a reasonable rate for a pet deposit, though North Carolina law does not have specific limitations in place (G.S. § 42-53).

Property Access Regulations

Advance notice: North Carolina landlords do not have to give tenants notice before entering a property, but they are generally recommended to provide a minimum of 24 hours’ notice.

Immediate access: Landlords in North Carolina have the right to enter a property immediately and without notice when there is an emergency or maintenance issue.

Landlord harassment: Although landlords are not legally required to notify tenants before accessing a residential rental property, repeatedly doing this is a form of landlord harassment. If this occurs, the tenant has the right to end the North Carolina month-to-month lease agreement.

Rental Agreement Violations

Missed rent payment: When rent remains unpaid after the 5-day grace period expires, a landlord should send a 10-day notice to quit or pay (N.C.G.S.A. § 42-3).

Lease violation: When a lease violation occurs, landlords can execute a summary ejectment. First, the landlord must notify the tenant to vacate and then file a Complaint in Summary Ejectment with the court if the tenant remains at the property after the date mentioned in the notice (N.C.G.S.A. § 42-3).

Self-help evictions: In North Carolina, it is not legal to pursue a self-help eviction (G.S. § 42‑25.6).

Lease abandonment: Breaking a lease early does not necessarily relieve a tenant of responsibility for paying rent. If the tenant abandons the property or ends the lease without cause, the tenant could be liable for the remainder of the rent until the landlord finds a new occupant (G.S. § 42-26).