North Carolina Lease Agreement

Required Landlord Disclosures (3)

In addition to the physical lease agreement, other forms (disclosures) need to be signed to ensure that the tenant is aware of any potential health and safety risks on the property.

Further, tenants will receive an additional form in North Carolina after signing the lease, including the security deposit details. We’ll cover this in more detail below.

1. Lead-Based Paint: If the property was constructed before 1978, landlords must inform tenants if any lead-based paint or lead-based paint hazards were used before the lease starts. Because this disclosure is federally mandated, every state requires it.
2. Security Deposit Receipt: In the first 30 days after the lease start date, the landlord must give the tenant a receipt for the security deposit, including the bank details and its location (G.S. § 42-50).
3. Accidental Damage Notice. North Carolina requires a statement regarding liability for accidental damage if it applies to the lease (G.S. § 42-10).

Security Deposit Regulations

Maximum Security Deposit Amount: When a lease exceeds two months, landlords can charge a security deposit of up to two months’ rent. However, if the lease is month-to-month, they can charge one and a half months’ rent (G.S. § 42-51(b)).

Receipt of Deposit: Landlords must send tenants a receipt of the security deposit amount and holding location within 30 days after the lease begins (G.S. § 42-50).

Deduction Tracking: Landlords have 30 days to give tenants an itemized list of deductions if they hold onto any amount of the security deposit (G.S. § 42-52).

Returning a Tenant’s Security Deposit: In North Carolina, a landlord must return a security deposit to a tenant within 30 days after the tenant moves out (G.S. § 42-52).

Landlord’s Access to Property

Advance Notice: North Carolina landlords are not required to notify tenants before accessing a property. However, it is suggested that landlords provide written notice of at least 24 hours as a courtesy if any maintenance, repairs, or inspections need to be done.

Immediate Access: In North Carolina, landlords can access a property without giving notice due to an emergency or maintenance need.

Landlord Harassment: In North Carolina, landlords don’t have to give a notice before entering a property. However, entering the property multiple times without the tenant’s presence or notice could be considered landlord harassment. Continued harassment could give the tenant a valid reason to terminate the lease.

Rent Payment Laws

Grace Period: In North Carolina, tenants have a 5-day grace period to pay rent (G.S. § 42-46(a)).

Late Rent Fees: Late fees cannot exceed $15 or 5% of the total amount of rent per month, whichever is more (G.S. § 42-46(a)(1)).

Tenant’s Right to Withhold Rent: A tenant cannot withhold their rent payment in North Carolina, even in the event of a repair, except when the court has given them the go-ahead (G.S. § 42-44(c)).

Breach of Rental Agreement

Missed Rent Payment: If a tenant doesn’t pay rent by the end of their grace period, a landlord can give the tenant a 10-day notice to quit (non-payment of rent), which provides them with 10 days to pay or move out (N.C.G.S.A. § 42-3).

Lease Violation: In the event of a lease violation, a landlord can pursue a summary ejectment. That begins with the landlord providing the tenant with a notice to vacate and filing a complaint in the local court if the tenant has not moved out by the date specified (G.S. § 42-26).

Self-Help Evictions: Self-help evictions are illegal in North Carolina (G.S. § 42‑25.6).

Lease Abandonment: If a tenant moves out of a property before the end of the lease, they may owe the remaining rent due for the full term (G.S. § 42-26).

Ending a Lease

Month-to-Month: North Carolina tenants and landlords must provide 7-days’ notice to terminate a month-to-month lease. (G.S. § 42-14)

Fixed-Term: North Carolina tenants are legally allowed to break a fixed-term lease before its end date if they are military and stationed a minimum of 50 miles away, living at a foreclosed property, or experiencing domestic violence or stalking (G.S. § 42‑45, 42‑45.1, 42‑45.2).

Property Abandonment: If a tenant leaves behind property at their old residence, landlords should hold onto the property for a minimum of 5 days if the property’s value is below $500 or 7 days if it exceeds that amount. (G.S. § 42-25.9)

For more information, check out our landlord’s guide about when a tenant wants to break a lease.

Renewing a Lease

Required Renewals: North Carolina landlords are not required to renew tenant leases.

Required Notice: Landlords and tenants alike should provide 30 days’ notice for one-year leases and greater. Month-to-month leases require just seven days’ notice (G.S. § 42-14).

Rent Control & Stabilization

Rent control and stabilization do not exist in North Carolina.