North Carolina Guide to Landlord-Tenant Laws

Here’s a guide to what you should know about your rights as a tenant in a North Carolina rental home

About one-third of North Carolinians rent their homes—that’s about 1.3 million households. Every renter has a landlord, whether it’s an individual and you rent a unit in a multi-family home or a single-family house, or you rent an apartment in a complex from a management company. And, like anything else, there are great landlords and less-great landlords (and the same goes for tenants!). 

That’s why it’s important for both landlords and tenants in the Tar Heel state to have a basic overview of North Carolina landlord-tenant law. There are rights and responsibilities for both landlords and tenants, and knowing what they are and how to advocate for your position can save a lot of hassle if there’s a disagreement or conflict.

Guide to North Carolina landlord’s duties

Under the same statute, North Carolina specifies that a landlord must uphold these obligations:

• Comply with building and housing codes. 
• Make necessary repairs and maintain the premises in a fit and habitable condition. 
• Maintain all electrical, plumbing, sanitary, heating, ventilating, air conditioning, and other appliances in good working order. The tenant is required to notify the landlord in writing of any needed repairs, except in an emergency. 
• Keep common areas safe and clean. This includes parking lots, laundry rooms, and similar areas accessible to tenants. 
• Provide smoke alarms. If the tenant notifies the landlord that a smoke alarm is not working, the landlord must repair or replace it within 15 days of notice. The landlord must make sure the alarm is operable and in good condition at the beginning of the tenancy. The landlord must install new batteries in each smoke alarm at the beginning of a tenancy unless the tenant and landlord have agreed otherwise in writing. 
• If the landlord charges the tenant for water or sewer services and the landlord becomes aware that the water is above a maximum contaminant level, the landlord must provide the tenant with notice of that condition. 
• If the unit as a heat source, appliance or fireplace that burns fossil fuels, or if there is an attached garage, there must be at least one operable carbon monoxide detector alarm per unit level. If the tenant notifies the landlord that a CO2 alarm is not working, the landlord must repair or replace it within 15 days of notice. The same rules regarding batteries and maintenance apply with respect to fire alarms and CO2 alarms. A CO2 alarm may be combined with a fire alarm if the combined alarm differentiates between the presence of carbon monoxide and the presence of smoke.
• A landlord is required to repair or replace these conditions within a reasonable amount of time following notice:

The tenant could be responsible for costs if it’s the tenant’s fault that a repair is necessary.

What are typical residential tenancy legal claims?

There are instances when a landlord is reluctant to repair or replace something that’s not working, or to repair a broken appliance, etc. In a situation where the landlord refuses to maintain property in accordance with the lease agreement or the Residential Rental Agreements Act, a tenant might need to consider legal measures.

There are also claims where the tenant’s personal property like furniture or electronics are damaged by the landlord’s failure to maintain the premises. The landlord would be responsible for the costs or value of repairing or replacing damaged or destroyed property. There are situations when the landlord might refuse to repair or pay for repairs, which might be the type of issue handled in small claims court.

North Carolina laws regarding rent payments and security deposits

North Carolina does not permit rent control, so a landlord may charge any amount of rent they wish. While rent increases should be reasonable, there is no law that requires a landlord to send advance notice of an increase before renewing a lease. 

Late fees

A landlord may charge a late fee up to $4 or 5% of the total rent if the tenant is on a weekly rent basis. If it’s a monthly rent, the fee can be up to $15 or 5% of the total. However, a landlord must provide a grace period of five days before imposing fees. 

Security deposits

A landlord may collect a security deposit. If the lease is week-to-week, the security deposit may be up to two weeks’ rent. If the lease is month-to-month, they may charge a maximum of 1 ½ months’ rent. North Carolina law does not permit security deposits higher than two months’ rent. The landlord must return the security deposit to the tenant with 30 days of the tenant vacating the property. If the landlord requires longer than 30 days to assess the property they have up to 60 days. However, after 60 days, the tenant is entitled to the full value of the security deposit. 

Terminating a lease

A North Carolina tenant may terminate a lease when it ends for any reason. They are required to provide notice to the landlord. If it’s a week-to-week lease, they may provide two days’ notice. They owe seven days’ notice for a month-to-month lease and 30 days for a year-to-year lease. 

A tenant can end a lease early because of:

Evictions

The North Carolina Office of Administrative Hearings and the Fair Housing Act prohibit a landlord from discriminating against a tenant or prospective tenant because of race, religion, familial status, sex, gender, and other protected classifications.

There are three situations when a landlord may evict a tenant:

• Nonpayment of rent, after 10 days’ notice by the landlord; 
• Breach in the lease; and
• Criminal activity on the premises.