North Carolina Property Management Laws

Note: This guide is intended to be used as an educational resource. The contents within do not constitute legal advice. To obtain information regarding property management laws in your state, consult a local attorney. This guide is based only on property management laws at the state level. Local county and city laws may exist that are not discussed in this guide. Consult a local attorney to obtain information that pertains to your specific location and situation.

Property Management Laws Overview in North Carolina

Code	Description
Chapter 93A	Real Estate License Law
Chapter 41A	State Fair Housing Act
Chapter 42	Landlord and Tenant Laws
42-2A	Eviction Laws
42-5	Residential Rental Agreements
42-6	Security Deposit Laws

Rental Application Laws

Are there laws that protect tenants against discrimination?

Yes. North Carolina’s Fair Housing Act (41A) protects tenants against discrimination by the landlord or property manager on the basis of race, color, religion, sex, national origin, handicapping condition or familial status.

What rental application fees are allowed?

North Carolina doesn’t have a state law that limits application fees, but local or county ordinances may apply.

Security Deposit Laws

Are additional move-in fees allowed?

The only other move-in fees allowed are pet deposits, which should be “reasonable and nonrefundable,” according to NC 42-53.

Is there a limit on the security deposit amount that can be charged?

Yes. Per NC 42-51(b), the security deposit collected from the tenant should not exceed two weeks’ rent if the rental term is week-to-week, should not exceed 1.5 months’ rent if the rental agreement is month-to-month and should not be greater than two months’ rent if the rental terms are greater than month-to-month.

Does the landlord have to hold the security deposit in a specific way during occupancy?

According to NC 42-50, the security deposit is held in a trust account with a licensed and federally insured financial institution (bank). The landlord may also furnish a bond from an insurance company licensed to do business in North Carolina. The landlord can hold security deposits in a trust account outside of North Carolina only if the landlord provides the tenant with an adequate bond in the amount of the deposits. The landlord must notify the tenant of the name and address of the bank or financial institution where the security deposit is located within 30 days of the beginning of the lease term.

How long does the landlord have to return the security deposit after move out?

NC 42-52 states that security deposits must be refunded to the tenant upon termination of the lease. The landlord is required to itemize any damage incurred during the rental period and mail or deliver the balance of the security deposit to the tenant within 30 days after lease termination.

What are the reasons why a landlord can withhold part or all of the security deposit?

According to this same law (42-52), the landlord may withhold part of the security deposit to pay for damages to the rental, but these funds may not be withheld for conditions due to normal wear and tear. Another reason the landlord might withhold the security deposit is if the renter moved away and left no known address. In this case, the landlord can hold on to the balance of the deposit for tenant collection for up to six months.

What is the penalty if the landlord doesn’t return the security deposit?

If the landlord doesn’t return the security deposit within 30 days after lease termination, the tenant has the right to file a civil suit to require “the accounting of and the recovery of the balance of the deposit.” (42-55). If a landlord willfully fails to return it, the landlord voids the right to hold any portion of the tenant’s security deposit.

Other Security Deposit Laws in North Carolina

Security deposits can only be used for certain purposes, as outlined in 42-51. These include:

• To cover nonpayment of rent and costs for water, sewer or electric services
• Damage to the premises, including damage to smoke and carbon monoxide alarms
• Damages if the tenant doesn’t stay for the entire rental period
• Unpaid bills that become a lien against the property
• Costs of re-renting the property after a breach by the tenant
• Costs of removal or storage of the tenant’s property after eviction
• Court costs

Laws About Leases and Lease Termination

What types of lease terms are allowed?

North Carolina doesn’t have a state law that dictates specific types of lease terms, but a common length is 12 months. In 42-14, a section that discusses the length of notice the tenant has to give when terminating a lease, it mentions year-to-year, month-to-month and week-to-week leases.

What happens if the tenant violates the lease?

Articles 2A and 3 mention what options the landlord has if the tenant violates the lease. Section 42-26 states that tenants may be removed from their rental via eviction proceedings if they remain in the rental past their signed lease term, do anything that goes against the lease stipulations or stop paying rent.

How much notice is required for a month-to-month lease termination?

In North Carolina, according to section 42-14, tenants who wish to end a month-to-month lease agreement must provide a notice of seven days. However, if the rental is a manufactured home as defined in G.S. 143-143.9(6), the notice to terminate must be given 60 days ahead of time, regardless of the type of lease.

When can a tenant terminate a term lease without penalty?

Certain extenuating circumstances allow a tenant to end a rental agreement early without penalty. Covered groups include:

• Victims of domestic violence, sexual assault or stalking (42-45.1)
• Military personnel, surviving family members or lawful representatives (42-45)
• Tenants who are residing in a foreclosed property (42-45.2)

How much notice do service members have to supply before terminating the lease?

Tenants who are service members who need to terminate their lease due to official military orders may do so by submitting a written notice of termination with an effective date that is at least 30 days after the landlord’s receipt of the notice. The notice has to be accompanied by a copy of the official military orders or written verification of orders signed by the service member’s commanding officer (42-45).

Are there special lease termination rules for victims of domestic violence?

Yes. A victim of domestic violence can submit a written notice to terminate with an effective date that’s at least 30 days after the landlord’s receipt of the notice. The law (42-45.1) requires that the notice be accompanied by a copy of a protection order, restraining order or an address confidentiality card. Domestic violence victims are not liable for rent or fees due to early termination of the tenancy, but they are responsible for rent prorated to the effective date of the termination.

How and when can a landlord evict a tenant?

In North Carolina, a landlord can evict a tenant for any of the following reasons: The tenant remains in the rental property after the lease term has expired, the tenant has violated lease terms or the tenant is in arrears for rent (42-26).

How much notice does a landlord have to give before making changes to the property that result in the termination of tenancy?

For nonpayment of rent, landlords in North Carolina are required to give a 10-day notice that demands payment of all rent due (42-3). If the tenant doesn’t pay, the landlord has the right to evict them. 

Laws About Rent and Late Fees

When can a landlord increase rent?

North Carolina doesn’t have a state statute that covers when a landlord can increase rent, but local or county ordinances may apply.

Is there a maximum amount of rent that a landlord can charge tenants?

North Carolina doesn’t have a state statute that covers the maximum amount of rent that a landlord can charge tenants, but it does have guidelines around rent control (42-14.1). These state that the county or city can’t enforce any ordinance that regulates the amount of rent to be charged for privately owned, single-family or multiunit rental properties.

Is there a state-mandated grace period that landlords must give tenants before charging a late fee?

North Carolina law states that late fees can only be charged for rent if the payment is late by five days or more (42-46).

Is there a limit on how much of a late fee the landlord can charge tenants?

Guidance on late fee amounts is based on how often the rent is paid.

• For rent paid each month: Landlords can charge a late fee of up to $15 or 5% of the monthly rent, whichever is greater.
• For rent paid each week: Landlords can charge a late fee of up to $4 or 5% of the weekly rent, whichever is greater.

The law also states that the late fee may be administered only one time for each late payment.

Legally Required Disclosures

What types of disclosures are landlords required to supply regarding ownership of the property?

According to Chapter 42, the only required disclosure for landlords is to inform tenants of where their security deposit is held. However, other city or county ordinances may apply and may include other required disclosures.

What disclosures related to mold are landlords required to supply?

North Carolina doesn’t have any laws about landlords disclosures related to mold, but municipal, federal or county laws may apply.

What disclosures related to lead paint are landlords required to supply?

North Carolina doesn’t have any laws about landlord disclosures related to lead paint, but city, federal or county laws may apply.

Laws About Landlord Responsibilities

How much notice does the landlord have to supply before entry?

No law in North Carolina provides guidance on how much notice the landlord has to supply before entry into the rental property. However, these terms may be stated in the lease, and city, federal or county laws may apply.

When can the tenant refuse to allow the landlord entry?

No law in North Carolina states when the tenant can refuse to allow the landlord entry into their rental property, but terms may be specified in the lease. Also, local city, federal or county laws may provide guidance.

What steps must the landlord take to keep the property habitable?

North Carolina law outlines in 42-42 that the landlord must provide fit premises. This includes:

• Ensuring the rental property complies with applicable building codes
• Making all repairs to keep the premises fit and liveable
• Keeping common areas of the premises safe
• Maintaining and keeping in good working order the electrical, plumbing, sanitary, heating, AC and other facilities and appliances supplied by the landlord and promptly repairing these items and systems when needed
• Providing operable smoke alarms, either battery-operated or electrical
• Providing a minimum of one carbon monoxide detector
• Repairing or remedying anything that is imminently dangerous, such as unsafe wiring

What amenities must the landlord supply and maintain?

The landlord is required to provide amenities that align with a fit premises and may include any of the items listed above.

What utilities must the landlord supply and maintain?

The utilities the landlord must supply and maintain include water, sewer, electrical, heat and AC (42-42).

Does the landlord have to supply a certificate of inspection?

North Carolina does not have a law that states the landlord must supply a certificate of inspection, but municipal, federal or county ordinances or laws may apply.

Is the landlord required to supply locks and keys?

North Carolina law doesn’t explicitly state whether a landlord has to provide locks and keys; however, it does state that the landlord must repair or remedy the lack of operable locks on doors leading to the outside (42-42). Tenants can also request to have the locks changed if they have been a victim of domestic violence, sexual assault or stalking, and the landlord has to either change the locks within 72 hours or give the tenants permission to do it themselves (42-42.3).

Are retaliatory actions prohibited? There are no retaliatory actions related to landlord responsibility as outlined in North Carolina law, but municipal or federal laws or county ordinances may apply.

Property Maintenance and Repair Laws

What type of maintenance is the landlord responsible for?

The landlord is responsible for providing premises fit for living. In 42-42(4), the law states that the landlord must maintain in good and safe working order and promptly repair the following systems, provided that the tenant notifies the landlord in writing (except in emergency situations):

• Electrical
• Plumbing
• Sanitary
• Heating
• Ventilating
• Air conditioning

How long does the landlord have to make repairs?

North Carolina law doesn’t specify a period of time that the landlord has to make repairs, with the exception of smoke detectors and carbon monoxide alarms. These have to be replaced within 15 days of the tenant letting the landlord know they’re inoperable. For electrical, plumbing, sanitary, heating and other systems, the law just states the landlord should repair them “promptly.” (42-42).

What type of maintenance is the tenant responsible for?

North Carolina law (42-43) clearly states the type of maintenance the tenant is responsible for, and this includes:

• Keeping the premises clean and safe
• Disposing of all ashes, garbage and other waste
• Keeping plumbing fixtures clean
• Not deliberately destroying or damaging parts of the rental property

Is the landlord responsible for fixing damage caused by tenants?

No. In fact, the law states that tenants are responsible for damage they deliberately cause. The only damage the landlord is responsible for is damage due to wear and tear or acts of the landlord (42-43).

When does a landlord have to return and/or lower rent due to diminished rental value?

North Carolina law doesn’t provide guidance on when the landlord has to return rent amounts or lower them due to diminished property value. However, specifics may be outlined in the lease or in city, federal or county laws.

When can a tenant request an official inspection to determine substandard or dangerous living conditions?

North Carolina law doesn’t provide guidance on when a tenant can request an official inspection to determine substandard or dangerous living conditions; however, city, county or federal laws may apply.

Under what circumstances can a tenant make a repair and deduct the cost from the rent paid to the landlord?

There is no guidance in North Carolina law about deducting the cost of a tenant-made repair from rent, but there may be specific guidelines in the lease agreement.

When is a landlord required to pay for relocation assistance?

Article 2 of Chapter 133 of North Carolina’s General Statutes outlines relocation assistance parameters for displaced people, but no law specifically states that landlords are responsible for paying for relocation assistance. There may be city or federal laws or county ordinances that apply.

Additional Rental Law Resources for the State of North Carolina

If you’re looking for additional information on property management laws in North Carolina, you can consult some of these resources listed below.

Name	Phone	Description
HUD.gov	N/A	Links to a tenant-landlord booklet from the North Carolina Department of Justice
Fair Housing Project	1-855-797-3247	Help for North Carolina residents with incidents of housing discrimination
North Carolina Housing Discrimination Complaint Form	N/A	For North Carolina residents to fill out and submit if they believe they have been victims of housing discrimination
North Carolina Housing Finance Agency: Resources for Renters	N/A	Renters can consult these resources for information on their rights and responsibilities.
Landlord/Tenant Brochure from Legal Aid of North Carolina	N/A	Summarizes landlord/tenant laws in North Carolina

Note: This guide is intended to be used as an educational resource. The contents within do not constitute legal advice. To obtain information regarding property management laws in your state, consult a local attorney. This guide is based only on property management laws at the state level. Local county and city laws may exist that are not discussed in this guide. Consult a local attorney to obtain information that pertains to your specific location and situation.