What Is a North Carolina Lease Agreement?
A North Carolina lease agreement allows a tenant to rent a property from a landlord while following specific terms. It highlights key terms, like the rent, lease duration, and maintenance duties.
The Residential Rental Agreements Act governs leases in NC, stating that the landlord must maintain a habitable premises. A lease cannot waive this inherent tenant right.
North Carolina Landlord-Tenant Laws Overview
North Carolina landlord-tenant laws govern leases and help in writing them to ensure they’re enforceable. Explore some of the key laws below.
| Topic | Rule | Law |
|---|---|---|
| Security Deposit Maximum | - No more than two weeks' rent for a week-to-week tenancy - No more than one and one-half month's rent for a month-to-month tenancy - No more than two months' rent for leases longer than month-to-month tenancies | NC Gen Stat § 42-51 |
| Security Deposit Storage | Must deposit in a trust account with a state-licensed and federally insured organization | NC Gen Stat § 42-50 |
| Security Deposit Returns | Within 30 days | NC Gen Stat § 42-52 |
| Rent Control | Not allowed | NC Gen Stat § 42-14.1 |
| Late Fees | - If it's a weekly lease, they can only charge the greater of $4 or 5% of the weekly rent - If it's a monthly lease, they can charge the greater of $15 or 5% of the monthly rent | NC Gen Stat § 42-46 |
| Grace Period | 5 days | NC Gen Stat § 42-46 |
| Landlord Right to Entry | Not specified; may depend on lease terms | n/a |
North Carolina Lease Agreements – By Type
Not every lease type will work for every situation. Legal Templates has various North Carolina lease agreements to help you find the one that fits your rental needs.
North Carolina Standard Lease Agreement
Sets out the terms and conditions of a tenancy agreement between a landlord and a tenant for renting residential property.
North Carolina Commercial Lease Agreement
Allows a tenant to rent a commercial property from a landlord.
North Carolina Rent-to-Own Lease Agreement
Allows a tenant to buy property from a landlord after their lease term expires.
North Carolina Month-to-Month Rental Agreement
Continues indefinitely with automatic monthly renewals.
North Carolina Sublease Agreement
Establishes a sublease agreement, permitting the original tenant to rent to a third party while maintaining their obligations to the primary landlord.
North Carolina Room Rental Agreement
Establishes guidelines for cohabiting in separate rented rooms within a larger property and defines financial duties formally.
Security Deposit Rules in North Carolina
A security deposit lets North Carolina landlords recover unpaid rent and property damage if needed, but it must follow certain rules. For example, a landlord can charge a maximum security deposit amount in these cases (NC Gen Stat § 42-51):
- No more than two weeks’ rent for a week-to-week tenancy
- No more than one and one-half month’s rent for a month-to-month tenancy
- No more than two months’ rent for leases longer than month-to-month tenancies
Landlords don’t have to pay interest on security deposits, but they must deposit them in a trust account with a state-licensed and federally insured organization (NC Gen Stat § 42-50). Alternatively, the landlord may furnish a bond from an insurance company licensed to do business in NC. Tenants must receive notice from the landlord within 30 days of the start of the lease about where the deposit is held.
Landlords cannot unjustifiably keep the security deposit. They must return it within 30 days of the lease’s end (NC Gen Stat § 42-52). They may withhold security deposit funds for various reasons, including unpaid rent and re-renting costs after a tenant’s breach (NC Gen Stat § 42-51).
Rent Payment Regulations in North Carolina
Landlords and tenants can refer to the lease to see when rent is due. Landlords can charge whatever they’d like for rent, as rent control is prohibited in NC. No city or county can regulate rent for privately owned residential properties (NC Gen Stat § 42-14.1).
Tenants may have to pay late fees if their rent is overdue, but landlords can only charge so much. If it’s a weekly lease, they can only charge the greater of $4 or 5% of the weekly rent (NC Gen Stat § 42-46). If it’s a monthly lease, they can charge the greater of $15 or 5% of the monthly rent. Landlords must abide by a five-day grace period. After this, they can initiate eviction with a 10-day notice to pay or quit.
Landlord Entry Regulations in North Carolina
North Carolina has no general or emergency statute requiring landlords to give notice before entering a property. However, landlords can provide reasonable notice as a courtesy to their tenants. It’s a good idea to list the notice the landlord will respect in the North Carolina residential lease agreement.
Tenants experiencing domestic violence can request a lock change. If the landlord doesn’t comply, tenants may change the locks themselves but must provide the landlord with a new key within 2 days (NC Gen Stat § 42-42.3).
North Carolina Landlord and Tenant Property Repair Responsibilities
Landlords must provide a fit premises per NC Gen Stat § 42-42. Some ways they can do so include following all applicable building codes and addressing repair requests in a timely manner. Tenants also have specific duties when they enter a North Carolina residential lease agreement. For example, they must keep all plumbing fixtures clean and dispose of waste properly (NC Gen Stat § 42-43(a)(5)).
Required Lease Disclosures in North Carolina
Landlords must include the following lease disclosures in any North Carolina rental lease agreement they create:
- Lead-based paint disclosure. A landlord should notify a tenant if the property was built before 1978 because older properties may contain lead-based paint (42 US Code § 4852d).
- Late fees disclosure. If the landlord decides to charge late fees for the rent, these fees must be explicitly stated in the lease agreement (NC Gen Stat § 42-46).
Terminating a Lease in North Carolina
Either party can terminate a month-to-month lease by providing a 7-day written notice to the other party (NC Gen Stat § 42-14). A one-year or more lease requires a 30-day written notice.
If a tenant leaves behind items worth $750 or less, the landlord can give the items to a non-profit. But before doing so, the landlord must immediately post a notice at the rental, post the notice where rent is collected for 30 days, and mail a copy to the tenant’s last known address (NC Gen Stat § 42-25.9).
North Carolina Lease Agreement Sample
View our free North Carolina lease agreement sample to see what terms and disclosures to include. Then, write your own using our guided form and then download it as a PDF or Word file.
