North Carolina Room Rental Agreement

Required Landlord Disclosures (3)

Lead-based paint disclosure: If your property was built before 1978, federal law requires you to let tenants know about any known lead-based paint or hazards, which means providing them with an official disclosure form and an EPA-approved informational pamphlet about lead safety.

Security deposit receipt: You must provide your tenant with a written receipt for their security deposit within 30 days of the lease start date. This receipt needs to include the name of the bank or institution where the deposit is being held to ensure transparency and protect both parties (G.S. § 42-50).

Accidental damage notice: If it applies, you’re required to give tenants a statement clarifying that they won’t be held responsible for accidental damage to the property (G.S. § 42-10).

Security Deposits

Maximum security deposit amount: North Carolina law limits the amount that landlords can charge for a security deposit. For month-to-month leases, you’re allowed to collect up to 1 and ½ months’ rent, while leases longer than 2 months let you charge up to 2 months’ rent as a deposit (G.S. § 42-51(b)).

Security deposit receipt: You’re required to provide your tenant with a written receipt for the security deposit within 30 days of the lease start date. This receipt should clearly state the name and location of the bank or institution holding the deposit (G.S. § 42-50).

Deduction notice: If you plan to retain any portion of the security deposit for unpaid rent or damages, you must provide your tenant with an itemized list of deductions within 30 days after they move out (G.S. § 42-52).

Returning the security deposit: You must return the remaining balance of the security deposit to your tenant within 30 days of their move-out date (G.S. § 42-52).

Rent Payment Regulations

Grace period: North Carolina law provides tenants with a 5-day grace period to pay rent without incurring a penalty, meaning you can’t charge a late fee until the 6th day after the rent was due (G.S. § 42-46(a)).

Late rent fees: If you plan to charge a late fee, state law caps it at the greater of $15 or 5% of the monthly rent. Make sure to include this policy clearly in your lease (G.S. § 42-46(a)(1)).

Tenant’s rights to withhold rent: In North Carolina, tenants don’t have the right to withhold rent if the landlord does not perform repairs. The only exception is if a court authorizes it (G.S. § 42-44(c)).

Rent Payment Increase Rules

Rent payment increase frequency: North Carolina law doesn’t set a limit on how often you can raise rent for most rental agreements, but you must follow the notice requirements in your lease. For month-to-month arrangements, it’s good practice to provide at least 30 days’ written notice before any rent increase takes effect.

Rent payment increase maximum: There’s no statewide cap on how much you can increase rent in North Carolina.

Rent control/stabilization: North Carolina does not have statewide rent control or stabilization laws.

Room Rental Agreement Breaches

Failure to pay: If your tenant doesn’t pay rent, even after any grace period, that’s a clear lease violation. In North Carolina, you can initiate the formal eviction process if rent remains unpaid; however, you must follow the legal steps, including providing proper notice and proceeding through the courts.

Lease violations: Breaches aren’t limited to unpaid rent. Tenants might break the lease by damaging the property beyond normal wear and tear, having unauthorized occupants in the home, or ignoring house rules you’ve laid out.

Lease abandonment: If a tenant leaves the room without notice or stops paying rent and communicating, you can’t simply reclaim the space immediately. North Carolina law generally requires landlords to take reasonable steps to confirm that the tenant has truly abandoned the unit before renting it to someone else.

Self-help evictions: It’s illegal in North Carolina to evict a tenant by changing the locks, shutting off utilities, or removing their belongings without a court order. All evictions must go through the formal legal process to ensure both landlords’ and tenants’ rights are respected.

Ending a Room Rental Agreement

Before ending any lease, it’s essential to understand the rules regarding breaking a lease in North Carolina, ensuring a fair and legal process.

Month-to-month room rental agreements: For month-to-month leases, either you or your tenant can typically end the rental with at least 7 days’ written notice before the end of the rental period.

Fixed-term room rental agreements: If you have a lease for a set term, such as 6 months or a year, it generally ends on the date specified in the agreement unless you and your tenant choose to renew it. Ending early typically requires a mutual agreement or a specific lease clause that permits early termination.

Room abandonment: If a tenant moves out without notice and stops paying rent, you can’t immediately reclaim the space. North Carolina expects landlords to make reasonable efforts to determine if the tenant has truly abandoned the room before renting it to someone else or disposing of the tenant’s belongings.

Tenant’s right to terminate: Tenants may have legal grounds to break a lease early without penalty in certain situations, such as when the unit is uninhabitable or if the landlord has violated significant lease terms.

Landlord Room Access Laws

Immediate access: You can only enter a tenant’s room without notice in true emergencies, such as a fire, major water leak, or safety hazard that requires immediate action.

Landlord harassment: Repeatedly showing up unannounced or using access as a means to pressure tenants into leaving is considered harassment.

Advance notice: While North Carolina law doesn’t specify an exact minimum notice period, it’s standard practice to give at least 24 hours’ written notice before entering for inspections, repairs, or showings.

Agreement Renewal/Termination

Required renewals: Fixed-term leases don’t automatically renew when they end. If you and your tenant wish to continue, you’ll need to sign a new lease or include a renewal clause that outlines the terms of the extension.

Required notice: For month-to-month leases in North Carolina, landlords and tenants typically need to provide at least 7 days’ written notice before terminating the rental agreement.

Month-to-month considerations: Month-to-month agreements automatically renew every month until either party gives proper notice to terminate.