Renting a property can be an intimidating and daunting process, especially in a state like North Carolina where regulations and laws governing rental agreements vary from the rest of the nation. As a landlord, it’s important to become familiar with local policies to ensure that you are well-acquainted with all applicable laws. To get up to speed quickly on North Carolina Landlord-tenant law, we've compiled our top 10 things landlords should know before renting out their properties in this state. This guide will provide an overview of topics ranging from tenant screening and rent payment collection to eviction proceedings and more. Read on for essential information needed when dealing with tenants living at your property.
Tenant Rights: Landlords are required to provide tenants with a copy of the North Carolina Residential Rental Agreement Act, which outlines tenant rights and obligations under state law. Specifically, it outlines what a tenant can expect from the landlord, such as timely repairs, healthy living conditions, and protection from discrimination. It also outlines what the tenant must do, such as paying rent on time and maintaining the property in good condition.
Security Deposits: Under
North Carolina Landlord Tenant Law, there is no limit on how much a landlord can require for a security deposit. However, landlords must return any security deposit within 30 days of the end of tenancy or provide an itemized list of deductions taken from it.
Late Fees: Landlords may charge late fees if rent is not paid by the due date specified in the lease agreement; however, these fees cannot exceed 5% of the amount due or $15 per month (whichever is greater). Additionally, landlords cannot charge late fees until rent has been late for more than five days after its due date.
Eviction Laws: To evict a tenant who has violated one or more provisions of their lease agreement or has failed to pay rent on time (after being issued proper notice), landlords will need to file an eviction action with their local court system. During this process, landlords may not take any other action (such as changing locks) against their tenants without first going through court proceedings and receiving approval from a judge.
Rent Increases: Generally speaking, landlords cannot increase the rent during an existing lease term unless they have included language specifying that they may do so at certain times (e.g., upon renewal). However, when renewing leases or entering into new ones with different tenants they may increase rents accordingly so long as they give proper notice (which varies depending on whether or not there is an existing lease agreement).
Utility Payments: Unless specified otherwise in the lease agreement between landlord and tenant, tenants are generally responsible for paying all utility bills associated with their rental unit during their tenancy period (including water/sewer charges).
Habitability Rights: Tenants have a right to “habitable” living conditions; that is to say that landlords must ensure that all units provided meet certain health standards (i.e., free from pests/rodents/vermin infestations). If any problems arise which make living conditions uninhabitable due to lack of maintenance or repair work performed by the landlord(s), then tenants are entitled to withhold rent payments until such maintenance/repair work is completed properly by landlords.
Subleasing Rules: In general, subleasing rules vary based on both municipal ordinances as well as individual lease agreements. Under North Carolina state law, subleases are allowed unless expressly prohibited by either party in writing. However, any changes made to an existing lease agreement must be signed off by both parties involved before taking effect.
Termination Notices: Landlords must provide written notice before terminating any rental contracts; most commonly this would be done via sending out either 30-day notices (in cases where leases contain such provisions) or 60-day notices (in cases where no leasing contract exists) before the intended termination date. Additionally, certain circumstances require even longer periods of notice, including military service members who must be given 120 days' notice before termination.
Right to Refuse: While it's illegal for landlords to discriminate against potential renters based on race/gender/religion, etc., they still hold full discretion over whom they choose to enter into rental agreements with - meaning that if someone fails background checks/credit checks / etc., then the landlord reserves the full right to refuse to enter into a contract with them.
Conclusion:
Understanding North Carolina's laws when renting properties is essential for protecting both yourself and your tenants' rights. By familiarizing yourself with these top ten tips, you can avoid potential legal issues relating to rental property ownership while simultaneously maximizing your profits from your investments. So get informed today you won't regret it.
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