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State rental laws and regulations

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State Laws & Regulations

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North Carolina

Published

Mar 18, 2024

Landlords and tenants will face legal issues during the rental process, but not every issue needs to involve the courts. This article will help you learn how the rental laws in North Carolina handle everything from security deposits to termination notices so you can navigate these with ease.

This article is not intended to be exhaustive or a substitute for qualified legal advice. North Carolina rental laws and statutes are always subject to change and may vary by county or city. You are responsible for performing your own research and complying with all North Carolina laws applicable to your unique situation.

If you have legal questions or concerns, we recommend consulting with the appropriate government agencies and a qualified lawyer in North Carolina. The North Carolina state bar association may have a referral service that can help you find a lawyer with experience in North Carolina landlord-tenant law.

Official North Carolina Rental Rules and Regulations

N.C. General Statute §§ 42 – Landlord and Tenant
N.C. General Statute §§ 41A – State Fair Housing Act
N.C. General Statute §§ 7A-19 – Small Claim Actions in District Court.
[GUIDE] North Carolina Private Landlord/Tenant Law Overview (pdf)

North Carolina Security Deposit Laws:

Security Deposit Maximum: Not to exceed two weeks’ rent if a tenancy is week-to-week, one and one-half months’ rent if a tenancy is month-to-month, and two months’ rent for terms greater than month to month. (NCGS § 42-51)
Permitted Uses of the Deposit: NCGS § 42-51 outlines the allowable uses of the deposit.
Deadline for Returning Security Deposit: 30 days, unless the landlord needs more time to evaluate damage, upon which an interim notice may be sent within 30 days, with a final determination within 60 days. (NCGS § 42-52)
Security Deposit Interest: No Statute
Separate Security Deposit Bank Account:
- Landlord is required to deposit the funds into a trust account with a licensed and insured bank or savings institution in the State of North Carolina, or furnish a bond from an insurance company licensed to do business in North Carolina. (NCGS § 42-50)
- The landlord must notify the tenant within 30 days after the beginning of the lease term of the name and address of the bank or institution where his deposit is currently located or the name of the insurance company providing the bond. (NCGS § 42-50)
Pet Deposits: A reasonable non-refundable pet deposit is allowed (NCGS § 42-53)
Advance Notice of Deposit Withholding: No (NCGS § 42-52)
Move-Out Checklist/Itemized List of Damages and Charges: Yes (NCGS § 42-52)
Record Keeping of Deposit Withholdings: No Statute
Receipt of Deposit: No Statute

North Carolina Lease, Rent and Fees:

Rent Is Due: No Statute
Rent Increase Notice: No Statute
Rent Grace Period: 5 days (NCGS § 42-46(a))
Application Fees: No Statute.
Late Fees:
- If rent is due in monthly installments, the landlord may charge a late fee up to $15.00 or five percent (5%) of the monthly rent, whichever is greater. (NCGS § 42-46(a)(1))
- If rent is due in weekly installments, the landlord may charge a late fee up to $4.00 or five percent (5%) of the weekly rent, whichever is greater. (NCGS § 42-46(a)(2))
Prepaid Rent: No Statute
Additional Fees: Some fees are allowed and are specified in (NCGS § 42-46)
Returned Check Fees: $25 (NCGS § 25-3-506).
Tenant Allowed to Withhold Rent for Failure to Provide Essential Services (Water, Heat, etc.): A tenant cannot withhold rent for any reason unless a judge or civil magistrate allows the tenant to do so (NCGS § 42-44)
Tenant Allowed to Repair and Deduct Rent: No Statute
Landlord Allowed to Recover Court and Attorney Fees: No (NCGS § 42-25.9)
Landlord Must Make a Reasonable Attempt to Mitigate Damages, including an Attempt to Rerent: No Statute

North Carolina Rental Notices and Entry:

Notice to Terminate Tenancy – Fixed End Date in Lease: No Statute. Typically no notice is needed as the lease simply expires.
Notice to Terminate Tenancy – Year-to-Year Lease: One month or more before the end of the current year of the tenancy. (NCGS § 42-14)
Notice to Terminate Tenancy – Month-to-Month Lease: 7 days (NCGS § 42-14)
Notice to Terminate Tenancy – Week-to-Week Lease: 2 days (NCGS § 42-14)
Notice to Terminate Tenancy – The Leasing of a Space for a Manufactured Home: 60 days (NCGS § 42-14)
Notice of Date/Time of Move-Out Inspection: No Statute
Termination for Nonpayment: 10 days (NCGS § 42-3)
Termination for Lease Violation: Immediately (NCGS § 42-26)
Required Notice before Entry: No Statute, but 24 hours is recommended
Entry Allowed with Notice for Maintenance and Repairs (non-emergency): No Statute
Entry Allowed with Notice for Showings: No Statute
Emergency Entry Allowed without Notice: No Statute
Entry Allowed During Tenant’s Extended Absence: No Statute
Notice to Tenants for Pesticide Use: No Statute
Lockouts Allowed: No (NCGS § 42-25.9)
Utility Shut-offs Allowed: No (NCGS § 42-25.9)
Self-Help Evictions: If a tenant is unlawfully evicted, the landlord is liable for the actual damages incurred to the tenant. (NCGS § 42-25.9)
Abandonment of Personal Property: Personal property is considered abandoned 10 days after lawful repossession of the property and formal written notice is posted inside and outside of the property, and there has been no communication from the tenant. Landlords must follow specific instructions in NCGS § 42-25.9 and NCGS § 42-36.2.

North Carolina Disclosures and Miscellaneous Notes:

Landlord’s Duties: A detailed list of landlord responsibilities is provided in NCGS § 42-42.
Renter’s Duties: A detailed list of tenant responsibilities is provided in NCGS § 42-43.
Domestic Violence Situations:
- Proof of Status: Landlord is entitled to verify claim of Domestic Violence status. (NCGS § 42-42.2)
- Protection from Termination: Landlord cannot terminate a tenancy, fail to renew a tenancy, or refuse to enter into a rental agreement with a victim of domestic violence. (NCGS § 42-42.2)
- Early Termination Rights: A tenant is allowed to terminate a lease with 30 days written notice and proof of Domestic Violence status. (NCGS § 42-45.1)
- Locks: Upon request, the landlord must change or rekey the locks, or give the tenant permission to do so, at the tenant’s expense within 48 hours if the perpetrator does not live in the same dwelling unit as the victim, and 72 hours if the perpetrator lives in the dwelling unit. If a landlord fails to change the locks within 48 hours, a tenant may do so, but must give a copy of the keys to the landlord within 48 hours. (NCGS § 42-42.3)
Lead Disclosure: Landlords must disclose all known lead paint hazards. Landlords must also provide tenants, as an attachment to a written lease, with an information pamphlet on lead-based paint hazards.
Retaliation: For 12 months thereafter, a landlord must not terminate or refuse to renew a lease to a tenant who has filed an official complaint to a Government Authority, been involved in a tenant’s organization, made a good faith complaint, or exercised a legal right. Other actions are prohibited. (NCGS § 42-37.1)

Court and Legal Related:

North Carolina Small Claims Court
- Limits: $10,000 (NCGS § 7A-210)
- Eviction Cases Allowed in Small Claims: Yes (source)
North Carolina Department of Justice
North Carolina Court System
North Carolina Bar Association
LawHelpNC.org – Renting and Evictions
Legal Aid of North Carolina

North Carolina Business Licenses:

Business License Required: No statewide statute, but local cities and counties may have regulations and requirements. Check with your local governing authority.