North Carolina Residential Lease Agreement
A North Carolina lease agreement is a rental contract where a landlord permits a tenant to live on a property in exchange for monthly rent. The agreement specifies the following information in further detail:
- Property address, names of landlord and tenant(s)
- Lease start and end dates
- Total rent due each month
- Security deposit
- Landlord and tenant expectations
After the landlord and tenant review and sign the lease agreement, it becomes legally binding. Throughout the tenancy, it can be referred to for information on grace periods, late fees, and accepted payment methods.
Using TurboTenant’s North Carolina residential lease agreement template, you can create a legally compliant lease in under 15 minutes. Just fill in the blanks and use our e-sign feature to make life easy for you and your new tenant.
North Carolina Lease Agreement
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North Carolina Landlord-Tenant Law
Every state has different landlord-tenant laws. North Carolina, in particular, is a landlord-friendly state in that it does not have rent control. Plus, landlords don’t have to get permission or provide notice before entering a property. Of course, even North Carolina has important tenant protections to consider as you draft a rental contract.
That is why it’s helpful but essential to understand North Carolina landlord-tenant laws when creating a lease agreement. If the agreement does not adhere to local, state, or federal laws, it may not be enforceable in court.
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.
- 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.
- 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).
- 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.
North Carolina Lease Agreement FAQ
Does a landlord have to provide a copy of the lease in North Carolina?
While there is no law in North Carolina requiring landlords to provide a copy of the lease, it is encouraged that they do so in case it needs to be referenced at any point.
What is the grace period for rent in North Carolina?
In North Carolina, tenants have a 5-day grace period for rent (G.S. § 42-46(a)).
Can a landlord refuse to renew a lease in North Carolina?
Landlords can refuse to renew a lease in North Carolina as long as it is not out of discrimination (N.C.G.S. § 42‑42.2).
Does a North Carolina lease need to be notarized?
North Carolina lease agreements do not need to be notarized.
Can you withhold rent for repairs in North Carolina?
No, a tenant may only withhold rent for repairs with the court’s permission (G.S. § 42-44(c)).