Key Takeaways

• Landlords have specific disclosure and documentation requirements. North Carolina owners must provide required disclosures, including lead-based paint information for qualifying properties, and follow applicable rules for handling and documenting security deposits.

• Both landlords and tenants have defined rights and responsibilities. Owners must provide habitable housing, address necessary repairs, respect tenant rights, and follow proper eviction procedures, while tenants are responsible for maintaining the property, following the lease, and reporting maintenance concerns.

• Consistent compliance helps protect rental investments. From property entry and maintenance to fair housing, security deposits, and lease changes, landlords should follow North Carolina requirements and maintain clear records to reduce disputes and potential legal issues.

North Carolina is generally considered to be a landlord-friendly state as its North Carolina landlord-tenant laws have a few differences when compared to most states. 

Among these differences are a broader power when it comes to being able to pursue a North Carolina eviction procedure, increasing rent under North Carolina eviction control laws, and not needing to notify North Carolina renters before entry.

Due to these differences, it’s especially important as a landlord in North Carolina that you be familiar with the rental policies. 

The following is a basic overview of the North Carolina landlord-tenant laws and North Carolina general statutes on the matter, including matters on legal hearings, and an eviction.

Required Disclosures

As a landlord following the law in North Carolina, there are two important notices you must disclose to your tenant before they sign a lease. 

The first disclosure landlords must make is on lead paint. If you are renting out a property built before 1978, landlords must disclose lead concentration in paints and finishes even if there has been past repairs. 

The other disclosure is on a tenant’s deposit. Landlords must provide their tenants with information regarding the banking institution holding their security deposit with a proper notice. 

Tenant Rights & Responsibilities 

Tenants have certain tenant rights under North Carolina landlord-tenant law. A landlord's North Carolina residents have a right to:

• Receive notice of any changes made to the written lease terms. For example, when their yearly or monthly rent is going up
• Have requested repairs done by the landlord within a reasonable time frame.
• Live in a habitable rental home that meets all the state’s, and city habitability codes.
• Enjoy their rented property in peace and quiet.

• Be treated with respect and fairness in accordance with the Fair Housing Act.

• As per North Carolina laws, renters are allowed to remain in their rented property until the landlord has followed the proper eviction process notice. This includes sending the proper eviction notice and not using self-help eviction notice tactics.

• Exercise their tenant rights without receiving any form of retaliation from the landlord. For instance, withhold rent or exercise the right to “repairs and deduct” if a landlord fails to take care of important repairs that threaten safety standards.

The following are the basic tenant duties in the state of North Carolina. A tenant must:

• Notify the landlord when maintenance issues occur.
• Abide by all terms of the lease such as paying rent.
• Allow entry when a landlord is looking to carry out an important job such as inspecting their rental or showing the rental property to prospective buyers or renters.  
• Maintain peace in the neighborhood.
• Give the landlord notice when away for an extended period of time.
• Care for the rental unit by cleaning it and taking care of sanitation.
• Notify the landlord when looking to vacate the North Carolina unit, before or by the end of the lease duration.

Landlord Rights & Responsibilities

The following are the basic landlord rights in the state and under North Carolina landlord-tenant law. Real Estate owners have a right to:

• Screen tenants according to their qualifying criteria and no other factors, as per federal law outlined in the North Carolina Fair Housing Act.

• Collect rent and other fees such as the security deposit before allowing a tenant to sign the lease and rental agreement, while adhearing to deposit and NC tenant laws.

• Enter the tenant’s unit, to carry out upkeep or otherwise, obligations specified by any written leases.

• Evict tenants for serious violations of the lease like refusing to pay monthly rent or allowing criminal activity in the unit.

• Make appropriate deductions to a tenant’s deposit for things such as unpaid rent, excessive damage, or unpaid utility bills.

• Receive notice before a tenant moves out at the end of their lease agreement term.

The following are the basic landlord duties in the state of North Carolina. Landlords must:

• Evict a tenant using the North Carolina eviction process.
• The landlord must serve a tenant with eviction court paperwork and eviction notice, either by certified mail, return receipt requested, or by paying the sheriff to deliver it.
• Make important disclosures to renters before allowing them to sign the lease agreements.
• Serve proper notice to a tenant when looking to change the terms of the rental or lease agreement. For example: increasing the rent payment.
• Respect your tenant’s peace and quiet enjoyment by minimizing disruption.
• Give tenants proper written notice if they wish to end the lease agreement early.
• Make requested maintenance within a reasonable time frame.
• Ensure their units abide by all applicable health and safety codes.

An Overview of the Landlord-Tenant Laws

1. Landlord’s Right to Enter the Dwelling

As landlords, you have a right to enter your tenant’s rented premises. Landlords may want to in the case of an emergency when looking to make a necessary repair, make agreed-upon repairs and discuss with the tenant, under a court order. 

Is there a notice requirement? No! The state has no legal provision regarding the landlord’s right to entry. Landlords can generally enter their tenant’s premises without serving a prior written notice.

2. The Condition, Maintenance, and Repairs of the Rental Property

According to North Carolina laws, it’s every landlord's responsibility to ensure their tenant lives in a habitable property. That is, among other things, one with working locks, drinkable water, and a proper place to put garbage like a garbage can. 

A tenant, however, needs to maintain this rental unit and letthe landlord know when repairs are needed. If a tenant oposingly to if the landlord does not, it's not the landlord's job.

3. Housing Discrimination Laws 

According to North Carolina Fair Housing Rules, discrimination is illegal based on some protected characteristics of the potential tenant  

In North Carolina, protected characteristics include race, color, sex, religion, national origin, gender expression, gender identity, and sexual orientation. 

4. Small Claims Lawsuits 

Conflicts between North Carolina landlords and tenants are relatively common. As such, it’s important to know the laws of small claims court to prepare for any legal issues that may occur and affect landlords.

To file a lawsuit notice in North Carolina, landlords need to pay a filing fee of $96 to the court’s clerk among other costs, including legal representation if they choose that route. Consider seeking legal aid if needed, as itcan prove to be helpful.

According to the North Carolina Department of Justice, lawsuits filed in a small claims must not exceed $10,000.  

5. Withholding Rent in North Carolina

Can North Carolina residents withhold rent payments if a landlord doesn't meet their maintenance responsibilities? No! 

The North Carolina Consumers Council explains that under North Carolina landlord-tenant regulations, a tenant has the legal right to withhold rent under two circumstances: if the landlord consents to it in writing or if a judicial officer grants them a court order permitting them to do so

That said, your North Carolina tenant may be able to exercise their right to “Repairs and Deduct” when it comes to habitability issues. Note that if tenants don't pay their rent for legal reasons, the landlord cannot charge late fees.

6. Security Deposits 

North Carolina security deposit law requires landlords to follow certain basic state laws when it comes to handling deposits  

For example, as landlords, you must adhere to the state’s deposit limit. For a month-to-month lease or rental agreement, the deposits you request can't exceed the value of one month and two weeks' rent.  

Bottom Line

It’s always a good idea to know the state-specific landlord-tenant laws when renting out your real estate investment in any city, but it’s not always easy to understand. From serving a notice to legally compliant written lease it can be difficult to navigate, or to remove a tenant.

Our team at KRS Property Management is here to help you navigate your rental ownership journey, from understanding North Carolina regulations to tenant screening, we've got you covered. Get in touch with us today and find out how we can help you get the most out of your North Carolina rental!

Frequently Asked Questions

Can a Landlord Enter a Property Without Notice?

North Carolina law does not establish a general statewide notice period for landlord entry, but owners should still respect a tenant's privacy and the right to quiet enjoyment. Establishing reasonable entry procedures in the lease and communicating with tenants before non-emergency visits can help prevent misunderstandings and disputes.

What Should North Carolina Landlords Document when Handling Maintenance Requests?

Landlords should keep records of maintenance requests, communications, inspection findings, work orders, invoices, and completed repairs. Maintaining a clear maintenance history can help demonstrate that habitability concerns were addressed appropriately and can also help owners identify recurring issues that may require preventative maintenance or replacement.

How Should a Landlord Handle a Tenant Who Stops Paying Rent?

A landlord should review the lease, document the missed payment, and follow the applicable North Carolina notice and eviction procedures rather than attempting to remove the tenant through self-help measures. Because eviction requirements can depend on the circumstances, owners should ensure notices and court filings are handled correctly or seek professional legal guidance.

What Can a Landlord Legally Deduct from a Security Deposit?

Permitted deductions can include certain costs associated with missed payments, damage beyond normal wear and tear, and other expenses allowed under North Carolina's security deposit laws. Owners should document the property's condition and deductions carefully and follow the state's requirements for handling and accounting for the deposit.

Can Landlords Increase Rent in North Carolina?

North Carolina does not have statewide rent control, so landlords generally have flexibility to establish rental rates. However, an increase should comply with the existing lease, applicable notice requirements, and fair housing laws, and landlords should apply their rental policies consistently rather than increasing rent based on a protected characteristic.

What Should Raleigh Landlords do Before Changing the Terms of a Lease?

Owners should review the existing lease to determine when and how its terms can be changed and provide any notice required by the agreement or applicable law. For changes involving rent, fees, or other material terms, putting the updated terms in writing helps create a clear record and reduces the potential for disputes.

How Can a Property Manager Help Owners Stay Compliant with Rental Laws?

A professional property manager can help standardize leasing, tenant screening, rent collection, maintenance, inspections, and documentation while keeping the owner's policies aligned with applicable requirements. KRS Holdings provides property management services designed to help North Carolina owners manage these day-to-day responsibilities while reducing the administrative burden of rental ownership.

Disclaimer: The information here isn’t intended to be used as a substitute for expert legal advice. If you have a specific question or need further assistance, kindly get in touch with either a qualified attorney or an experienced management company