North Carolina Tenant-Landlord Rental Laws & Rights for 2024

Tenant Rights and Responsibilities

As a tenant in North Carolina, you have certain basic rights and responsibilities under state law. One of your primary responsibilities is to pay rent on time as specified in the lease agreement. Failure to pay rent when due can ultimately lead to eviction proceedings being initiated by the landlord.

You also have a duty to keep the rental unit clean, sanitary, and free from damage beyond normal wear and tear. This includes properly disposing of garbage and not creating health or fire hazards. Tenants are expected to operate appliances, plumbing fixtures, and other facilities in a reasonable manner.

Another key responsibility is to not disturb your neighbors or allow others on the premises to disrupt their peaceful enjoyment of their home. This includes refraining from actions that create excessive noise, offensive smells, or other nuisances.

While landlords have maintenance obligations, tenants must also exercise reasonable care in using the rental property and its facilities. You cannot deliberately or negligently destroy, deface, damage or remove any part of the premises.

Tenants have the right to a habitable living space fit for occupation. Your landlord must comply with applicable building and housing codes to ensure the property is safe and livable. If repairs are needed, you have the responsibility to notify the landlord promptly.

Landlord Rights and Responsibilities

In North Carolina, landlords have several key responsibilities under state law. One of the most important is providing tenants with a habitable rental unit that meets basic standards of safety and livability. This includes ensuring the property has working utilities, is structurally sound, and has functioning essential systems like plumbing and heating.

Landlords must also make necessary repairs in a timely manner to maintain the rental property's livability. If a repair issue arises that makes the unit uninhabitable, such as a broken heater in winter, the landlord must address it promptly. Tenants have rights to withhold rent for major outstanding repairs under certain conditions.

Maintaining a safe property is another landlord duty. This means keeping common areas clean and clear of hazards, providing adequate security measures like locks and lighting, and ensuring the property complies with building and safety codes. Landlords can be held liable for injuries caused by unsafe conditions they failed to address.

Respecting tenant privacy is also vital. Landlords must provide proper notice, typically 24-48 hours, before entering an occupied rental unit except in emergencies. They cannot enter simply to harass tenants or without legitimate purpose. Tenants have a reasonable expectation of privacy in their home.

Overall, North Carolina landlords must exercise due diligence in providing safe, habitable housing and respecting tenant rights. Failure to uphold these responsibilities can lead to tenant claims and potential legal action against the landlord.

Rent Payment Laws

Rent is typically due on the first day of each month in North Carolina, unless otherwise specified in the lease agreement. Most landlords provide a grace period of a few days before considering the rent late. A common grace period is 5 days, though it can vary.

If rent is paid after the grace period ends, landlords in North Carolina are allowed to charge a late fee. State law does not specify a maximum late fee amount, so it will depend on what is stated in the lease. A typical late fee is around 5% of the monthly rent or a flat rate like $25-50. 

Landlords must give tenants reasonable notice, typically stated in the lease, before charging a late fee. This notice period allows tenants time to pay before incurring additional charges. Once proper notice is given, landlords can charge a late fee for any rent payment received after the grace period.

It's important for tenants to pay rent on time each month to avoid late fees. Repeated late payments could potentially lead to eviction proceedings by the landlord. Landlords cannot typically charge late fees that are considered excessive compared to actual monetary damages caused by the late payment.

North Carolina Rent Control

North Carolina does not have rent control laws, meaning there are no state-imposed limits on how much landlords can increase rent. This lack of regulation allows landlords to adjust rental prices based on market conditions, demand, and other economic factors. However, landlords must still adhere to specific legal requirements when implementing rent increases and managing rental properties.

Rent Increase Notices

Even though there are no caps on rent increases, North Carolina law requires landlords to provide tenants with proper notice before raising the rent. For month-to-month leases, landlords must give at least a 7-day notice before the new rent amount takes effect. For fixed-term leases, rent increases are typically only allowed at the end of the lease term unless otherwise specified in the lease agreement. Providing adequate notice ensures that tenants have sufficient time to adjust their budgets or make alternative housing arrangements if necessary.

Lease Agreements

The terms of the lease agreement play a significant role in governing rent increases. Most fixed-term leases stipulate that the rent amount cannot be changed until the lease expires. Tenants and landlords are encouraged to clearly outline the terms related to rent increases in the lease agreement to avoid any misunderstandings. By doing so, both parties can ensure transparency and fairness in their rental relationship.

Tenant Protections

While North Carolina does not have rent control, tenants are protected from discriminatory and retaliatory rent increases. Landlords cannot raise rent based on race, color, national origin, religion, sex, familial status, disability, or other protected classes. Additionally, landlords cannot increase rent as retaliation against tenants who exercise their legal rights, such as reporting housing code violations or joining a tenants' union.

Local Ordinances and Regulations

Although there are no statewide rent control laws, tenants and landlords should be aware of any local ordinances or regulations that might impact rental practices. Some municipalities may have specific rules regarding notice periods, lease agreements, and tenant rights that complement state laws. Staying informed about local regulations can help both tenants and landlords navigate the rental market more effectively.

Resources for Tenants

Tenants in North Carolina who experience significant rent increases or other rental issues can seek assistance from various housing organizations and legal aid services. These organizations can provide guidance on tenant rights, help with lease negotiations, and offer support in resolving disputes with landlords.

Security Deposits

According to North Carolina security deposit laws, there are specific laws governing the amount a landlord can charge for a security deposit and the requirements for returning the deposit to the tenant at the end of the lease term.

Landlords in NC are allowed to charge a security deposit equivalent to no more than two months' rent for an unfurnished unit and three months' rent for a furnished unit. Any amount charged above these limits would be considered excessive and illegal.

When a tenant moves out, the landlord must return the full security deposit amount within 30 days, provided there is no damage to the property beyond normal wear and tear. If any portion is being withheld for damages or unpaid rent, the landlord must provide the tenant with an itemized list of deductions along with any remaining deposit balance.

Landlords are required to keep security deposit money in a trust account separate from their personal or business accounts. They must also provide the tenant with the current bank account information where the deposit is being held.

For tenants with pets, landlords can charge an additional refundable pet deposit fee. North Carolina has no statutory limit on the amount that can be charged for a pet deposit, but it must be reasonable based on the actual costs of having the pet in the rental unit. Any amount charged simply as a "pet rent" fee that is non-refundable would be considered illegal.

Upon move-out, the pet deposit must be returned to the tenant if no pet-related damage occurred, beyond reasonable cleaning costs. The landlord cannot make deductions from the regular security deposit to cover pet-related costs if a separate pet deposit was collected.

Repairs and Habitability

Under North Carolina law, landlords have a duty to keep rental units in a fit and habitable condition. This includes maintaining all electrical, plumbing, sanitary, heating, ventilating, and other facilities and appliances in good and safe working order. Landlords must also comply with applicable building and housing codes that relate to issues like weatherproofing, structural integrity, and general upkeep of the premises.

If a repair issue arises that makes the rental unit uninhabitable, the tenant should provide written notice to the landlord specifying the problem and requesting that it be remedied within a reasonable period of time. North Carolina does not specify an exact timeframe for landlords to complete repairs, but they must act in a prompt and timely manner once notified.

Tenants do not have an unlimited right to withhold rent payments while waiting for repairs. However, if the landlord fails to fix an issue that renders the premises unfit and uninhabitable after being properly notified, the tenant may have grounds for rent abatement or applying rent payments to the cost of the repairs.

As an alternative remedy, tenants can give notice to terminate the rental agreement if the landlord does not make repairs after a reasonable period of time. Terminating the lease under these circumstances allows the tenant to proactively vacate the uninhabitable unit.

North Carolina law also allows tenants to pursue money damages against the landlord for any actual losses suffered due to the landlord's failure to keep the premises fit and habitable. This could include costs for temporary housing, medical expenses if the issue caused injury or illness, and other quantifiable harms caused by the lack of repairs.

Privacy and Entry Laws

Tenants in North Carolina have the right to privacy and reasonable notice before a landlord can enter their rental unit. Under state law, landlords must provide at least 24 hours advance notice to tenants prior to entry, unless it's an emergency situation. Proper notice can be given verbally, in writing, or through email or text message. 

The notice must state the intent to enter, as well as a reasonable time frame for entry such as a 4-hour window. Landlords cannot abuse this right of entry or use it to harass tenants. They are only permitted to enter at reasonable times and for legitimate business purposes like making repairs, showing the unit to prospective buyers/tenants, or conducting inspections.

Tenants have the right to deny entry if proper notice was not given, except in true emergency situations like a fire or burst pipe. Landlords cannot enter a tenant's unit without permission or notice, as this would violate the tenant's right to privacy and peaceful enjoyment of the rental property.

If a landlord needs to provide services like housekeeping, maintenance, or contracted work in the unit, they must make reasonable efforts to schedule this during appropriate hours that are least disruptive to the tenant's privacy and daily life. Overall, North Carolina law aims to balance the landlord's right to access their property with the tenant's right to privacy and advance notice of any entry by the landlord.

Discrimination Protections

Under the North Carolina Fair Housing Act, it is illegal for landlords to discriminate against tenants based on race, color, national origin, religion, sex, familial status, or disability. These protections apply to all aspects of the rental process, including advertising, screening applicants, setting rental terms and conditions, and terminating a tenancy.

Landlords cannot refuse to rent to someone, impose different rental terms, or provide differing housing services due to their inclusion in one of the protected classes. Discriminatory statements in advertising that indicate a preference or limitation based on a protected class are also prohibited.

For persons with disabilities, landlords must make reasonable accommodations and allow reasonable modifications to units and common areas. A reasonable accommodation is a change in rules or policies to afford equal opportunity to use and enjoy the dwelling. Reasonable modifications are structural changes made to existing premises to afford full enjoyment, both of which must be permitted at the tenant's expense.

Examples of reasonable accommodations include allowing service animals regardless of pet policies, reserving parking spaces, or adjusting due dates for rent payments. Reasonable modifications can include installing grab bars, ramps, or modifying kitchen cabinets or bathroom facilities.

If you encounter housing discrimination from a landlord, you can file a complaint with the North Carolina Human Relations Commission or the U.S. Department of Housing and Urban Development (HUD). Gather any evidence such as emails, advertisements, or witness statements to support your claim. State and federal agencies will investigate and can pursue enforcement actions against landlords found discriminating illegally.

Lease Termination

Proper notice is crucial when terminating a lease agreement in North Carolina, whether by the landlord or tenant. For month-to-month leases, either party must provide written notice at least 7 days before the next rent due date. For longer term leases, landlords are required to give 30 days notice, while tenants must provide notice at least 30 days prior to the lease end date. 

Early termination fees may apply if a tenant breaks their lease before the end date. These fees are capped at 1.5 times the monthly rent if the landlord is able to re-rent the unit quickly. If not, the tenant remains liable for rent until the unit is re-rented or the lease expires. Landlords cannot charge early termination penalties for tenants exercising the military clause.

The military clause allows active duty members to terminate their lease early without penalty if they receive permanent change of station orders or temporary deployment orders for 90 days or more. Proper documentation of the orders must be provided to the landlord, and rent is only owed for 30 days after providing notice.

Eviction Process

Landlords in North Carolina must have legal grounds to evict a tenant and follow strict procedures outlined in state law. The most common reasons for eviction include:

1. Nonpayment of rent

2. Violation of the lease agreement 

3. Tenant remains on the property after the lease has expired

4. Criminal activity by the tenant

Before filing for eviction, landlords must provide proper written notice to the tenant. For nonpayment of rent, landlords must give a 10-day notice to quit. For lease violations, the notice period is typically 7-30 days depending on the type of violation. 

Once the notice period expires, if the tenant has not moved out, the landlord can then file an eviction lawsuit with the court. The tenant will receive a court summons stating the reason for eviction. At the court hearing, both parties can present evidence and the judge or magistrate will decide if the eviction can proceed.

If the ruling is in favor of the landlord, the tenant has 10 days to appeal the decision to district court. Otherwise, the tenant must move out by the date specified in the court order, typically within 7-30 days. It is illegal for landlords to force tenants out themselves or shut off essential utilities.

During the eviction process, tenants have the right to access the rental unit, receive proper notice, attend court hearings, and request appeals if they believe the eviction is unjustified. Tenants facing eviction may qualify for legal aid assistance as well.

Squatters' Rights

In North Carolina, squatters' rights are governed by the legal doctrine of adverse possession, which allows individuals to claim ownership of a property if they meet specific criteria over a continuous period. Adverse possession is a complex process that requires squatters to demonstrate actual, open, notorious, exclusive, and hostile possession of the property. Understanding these criteria and the process involved is essential for both property owners and squatters.

Criteria for Adverse Possession

To establish a claim of adverse possession in North Carolina, a squatter must occupy the property continuously for a statutory period of 20 years. During this time, the squatter must meet the following criteria:

• Actual Possession: The squatter must physically occupy the property, using it as an owner would. This includes living on the property, making improvements, or maintaining it.
• Open and Notorious: The occupation must be visible and obvious to anyone, including the property owner. The squatter’s presence should be apparent and not hidden.
• Exclusive Possession: The squatter must possess the property exclusively, without sharing control with the owner or other squatters.
• Hostile Possession: The occupation must be without the owner’s permission and against the owner’s interests. Hostile in this context does not imply violence but simply means the possession is without legal authorization.
• Continuous Possession: The squatter must occupy the property continuously for the entire statutory period without significant interruption.

Color of Title and Adverse Possession

In some cases, a squatter may have "color of title," which means they possess a document that appears to give them legal ownership, even if it is technically invalid. In North Carolina, if the squatter has color of title, the required period for adverse possession is reduced to 7 years, provided all other criteria are met.

Property Owners’ Rights and Preventative Measures

Property owners in North Carolina can take several steps to prevent adverse possession claims. Regularly inspecting their properties, maintaining clear property boundaries with fences or signs, and taking prompt legal action to remove unauthorized occupants can help protect against squatters. Granting explicit permission to use the property can also negate the hostility requirement, thereby preventing an adverse possession claim.

Legal Process and Challenges

Establishing a claim of adverse possession in North Carolina typically involves filing a lawsuit to obtain a court judgment recognizing the squatter as the legal owner. The burden of proof lies with the squatter, who must provide clear and convincing evidence that they have met all the criteria for adverse possession. Property owners can challenge these claims by presenting evidence that the criteria were not met, such as showing that the squatter’s possession was not continuous or that they had permission to be on the property.

Public and Subsidized Housing

In North Carolina, there are various public and subsidized housing programs available to help low-income individuals and families secure affordable rental housing. Eligibility for these programs is primarily based on total household income compared to the area median income, with specific income limits varying by location and program.

To qualify for public housing, applicants typically cannot exceed 80% of the area median income. For the Section 8 Housing Choice Voucher program, the income limit is usually capped at 50% of the area median income. Elderly, disabled, and displaced individuals often receive preference on waiting lists.

The application process involves submitting detailed information about all household members, income sources, assets, and expenses. Applicants must provide verification documents like pay stubs, bank statements, and Social Security/disability award letters. Housing authorities conduct background checks and home visits as part of the screening process.

Once approved and a voucher or unit is available, tenants must follow all rules set by the housing authority or property manager. This includes allowing access for inspections, reporting changes in income or household composition, and avoiding disruptive behavior. Tenants are typically responsible for a portion of the rent based on their income level.

Public housing tenants have basic rights including decent, safe, and sanitary living conditions. Housing authorities must provide reasonable accommodations for disabled tenants and cannot discriminate based on protected classes. Tenants also maintain rights to organize tenant associations and file grievances through an established process.

Taking Legal Action

Tenants in North Carolina may have grounds to take legal action against their landlords in certain situations. Common reasons include the landlord's failure to make necessary repairs, unlawfully withholding a security deposit, or violating the tenant's privacy rights. In such cases, tenants can file a claim in small claims court.

The small claims court process in North Carolina is relatively straightforward. The tenant must file a complaint with the clerk of court and pay a filing fee, which is typically around $100 or less. The court will then schedule a hearing, and both parties will have the opportunity to present their case before a magistrate judge.

If the tenant prevails in their claim, the court may award them various remedies. These can include a judgment for monetary damages, such as the cost of repairs or the return of the security deposit. In some cases, the court may also order the landlord to take specific actions, such as making necessary repairs or ceasing certain behaviors.

It's important to note that tenants should carefully document any issues and keep records of communication with the landlord. This evidence can be crucial in supporting their case in court. Additionally, tenants may want to consult with a local tenants' rights organization or an attorney for guidance on navigating the legal process.

Tenant Resources

North Carolina has several state and local organizations dedicated to providing resources and assistance to tenants regarding their rights and responsibilities. The North Carolina Housing Coalition is a statewide nonprofit that advocates for affordable housing policies and educates tenants on fair housing laws. They offer counseling services, workshops, and legal aid referrals. 

Many counties and cities also have tenant associations or housing resource centers that can help renters understand local landlord-tenant ordinances. For example, the Greensboro Housing Coalition provides counseling, fair housing education, and landlord-tenant mediation services for residents of Guilford County.

The North Carolina Attorney General's Office has a dedicated consumer protection section with information on landlord-tenant laws and a hotline to report violations. Their website offers template letters and guidance for common rental issues like security deposit disputes.

For low-income tenants, the state's HUD-approved housing counseling agencies provide education, financial assistance, and access to public housing and voucher programs. These agencies are located across North Carolina's major cities and counties.

Tenants can also turn to nonprofit legal aid organizations if they need representation for issues like wrongful eviction, discrimination, or habitability concerns. Groups like the Pisgah Legal Services and the North Carolina Justice Center provide free legal counsel to qualifying low-income residents.

Frequently Asked Questions

How much notice does a landlord have to give a tenant in North Carolina?

In North Carolina, the notice period a landlord must give depends on the type of lease agreement. For month-to-month leases, landlords must provide at least 7 days' notice to terminate the lease. For fixed-term leases, the notice period should be specified in the lease agreement. If not specified, the lease typically ends on its expiration date without additional notice.

What is the 42-14 law in North Carolina?

Section 42-14 of the North Carolina General Statutes pertains to the termination of tenancy. It outlines the notice requirements for ending various types of tenancies, including month-to-month and year-to-year leases. This statute ensures that landlords provide adequate notice before terminating a lease agreement, helping protect tenants' rights.

Can a tenant withhold rent for repairs in North Carolina?

In North Carolina, tenants generally cannot withhold rent to force landlords to make repairs. However, tenants can take legal action by filing a complaint with the local housing authority or small claims court if the landlord fails to maintain the property in a habitable condition. Tenants should continue paying rent to avoid eviction and pursue legal remedies through the court system.

Can a landlord lock you out in North Carolina?

No, a landlord cannot legally lock out a tenant in North Carolina. Lockouts are considered illegal self-help evictions. Landlords must follow the legal eviction process, which includes providing proper notice, filing for eviction in court, and obtaining a court order before removing a tenant from the property. Tenants who are locked out illegally can seek legal remedies.

Can a landlord enter your apartment without notice in North Carolina?

In North Carolina, landlords generally must provide reasonable notice before entering a tenant's apartment, except in emergencies. While the law does not specify a minimum notice period, a 24-hour notice is commonly considered reasonable. Landlords can enter without notice in emergencies that threaten the health or safety of the tenant or the property.