North Carolina Residential Lease Agreement

Required Landlord Disclosures (3)

In addition to the lease itself, tenants must sign other forms (disclosures) so they’re informed of legally required information.

1. Lead-based paint: If the property was constructed before 1978, landlords must inform tenants of any lead-based paint or lead-based paint hazards. Because this disclosure is federally mandated, every state requires it.
2. Security Deposit Receipt: Within the first 30 days after the lease start date, the landlord must provide the tenant with a receipt for the security deposit, which must include the bank details and the location (G.S. § 42-50).
3. Accidental damage notice: North Carolina requires a statement regarding liability for accidental damage, if applicable, to the lease (G.S. § 42-10).

TurboTenant provides these disclosures with every lease agreement generated.

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 provide tenants with an itemized list of deductions if they retain any portion of the security deposit (G.S. § 42-52).

Returning a tenant’s security deposit: In North Carolina, a landlord must return a tenant’s security deposit 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, we suggest that landlords provide written notice of at least 24 hours as a courtesy if any maintenance, repairs, or inspections are required.

Immediate access: In North Carolina, landlords can access a property without providing notice in the event of an emergency or maintenance need.

Landlord harassment: North Carolina law does not require landlords to provide 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 fails to pay rent by the end of their grace period, a landlord can issue a 10-day notice to quit, which provides the tenant with 10 days to pay or vacate (N.C.G.S.A. § 42-3).

Lease violation: In the event of a lease violation, a landlord may pursue 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 vacated by the specified date (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: In North Carolina, tenants and landlords must provide each other with 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)

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 leases of one year or longer. Month-to-month leases require just 7 days’ notice (G.S. § 42-14).

Disclaimer: TurboTenant does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state, and federal laws and consult legal counsel should questions arise.