A North Carolina lease agreement allows a tenant to rent a property from a landlord while following specific terms. A landlord includes information like their and the tenant’s identities, a property description, pet allowances, safety information, and security deposit specifics.
Rental Lease Laws Overview
- Rent Control: No
- Limit on Late Fees: Yes
- Late Fees in Rental Agreement: Yes
- Grace Period: Yes
- License Required for Landlord: No
Before finalizing a lease, use a rental application to screen potential tenants and find the most suitable occupants.
By Type (6)
Standard Lease Agreement
Sets out the terms and conditions of a tenancy agreement between a landlord and a tenant for renting residential property.
Rent-to-Own Lease Agreement
Allows a tenant to buy property from a landlord after their lease term expires.
Sublease Agreement
Establishes a sublease agreement, permitting the original tenant to rent to a third party while maintaining their obligations to the primary landlord.
Room Rental Agreement
Establishes guidelines for cohabiting in separate rented rooms within a larger property and defines financial duties formally.
Required Lease Disclosures
Landlords should include the following lease disclosures in any lease agreements they create:
- Lead Paint Disclosure. A landlord should notify a tenant if the property was built before 1978 because older properties may contain lead-based paint. [1]
- Notice of Abandoned Personal Property. Tenant personal property is deemed abandoned five to seven (5-7) days after lawful repossession and notice by the landlord and a failure to respond by the tenant. [2]
- Security Deposit Notice. Landlords must notify a tenant, within thirty (30) days after the beginning of the lease, the name and location of the financial institution where the deposit is held. [3] [4]
- Late Fees Disclosure. If the landlord decides to charge late fees for the rent, these fees must be explicitly stated in the lease agreement. [5]
Security Deposit
- Maximum Amount: A landlord may request no more significant than two weeks’ rent in security deposit for a week-to-week tenancy, one-half months’ rent for a month-to-month tenancy, and two months’ rent. [6]
- Receipts: Not specified.
- Interest Payments: Landlords are not required to pay interest on security deposits. However, they must hold the deposit in a trust account within a licensed and insured North Carolina bank. If the deposit is in an interest-bearing account, the landlord is entitled to one percent interest annually to cover administrative and custodial expenses.
- Bank Account: A landlord must ensure that a tenant’s security deposit is not commingled with their personal assets. The deposit must be kept in a trust account in a licensed North Carolina bank.
- Returning Requirements: A landlord must return the security deposit to the tenant within thirty (30) days of the lease’s end or termination. [7]
- Withholding Rules: Landlords can withhold security deposit funds for damages, unpaid rent, re-renting costs, storage fees after eviction, and court costs. [6] However, they cannot withhold funds for normal wear and tear. [7]
Rent Payments
- Laws: Rent is due on the date specified in the lease.
- Rent Control: Prohibited in North Carolina. No city or county can regulate rent for privately owned residential or commercial properties. [8]
- Late Fees and Grace Period: If weekly lease, $4 or 5% of weekly rent, whichever is greater. If monthly lease then $15 or 5% of monthly rent, whichever is greater. Five-day grace period, If rent remains unpaid after this period, landlords can initiate eviction by issuing a 10-day notice to quit. [5]
- Withholding Rent: If a landlord neglects their utility or maintenance duties under the lease, the tenant can pay the utility company and subtract the cost from future rent.
Landlord Right of Entry
- Notice Requirements: North Carolina doesn’t have a 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.
- Keys, Locks, and Security: 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.
Property Repairs
- Landlord Responsibilities: Landlords must keep rental units habitable by meeting basic health and safety standards and promptly addressing repair requests.
- Tenant Repairs: Tenants must maintain utilities as required by applicable building and housing codes. [9]
- Abandonment: No specific state-mandated limit.
Terminating a Lease
- Month-to-Month Tenancy: Either party can terminate by providing a 7-day written notice to the other party.
- Unclaimed Property: After executing a writ of possession, the landlord must retain any abandoned personal property for at least seven days. If the property is valued at less than $500, the retention period is reduced to five days. After these periods, the landlord may dispose of the property.
Sample
Below, you can view our North Carolina lease agreement template and download it as a PDF or Word file:
