What types of rental accommodations are covered by legislation governing residential tenancies in North Carolina?
The statute covers residential dwelling units, and includes mobile homes or mobile home spaces.
What types of rental accommodations are NOT covered by this legislation?
The statute does not apply to transient occupancy in a hotel, motel or similar lodging; vacation rentals; or any dwelling furnished without charge or rent.
Is it necessary to have a written lease or rental agreement?
An oral lease is legal and enforceable in North Carolina if the rental term is for less than 3 years, however, a written lease is advisable. A rental term of 3 years or more requires a written agreement.
What about a written move-in move-out inspection report?
A written signed inspection report is not required, however, it is recommended to protect both parties’ interests and help to avoid disputes. At move-in the tenant should make a list of everything that is broken, stained, defective or damaged, sign the list and ask the landlord to sign it as well. If the landlord does not cooperate, the tenant should take pictures and get an impartial witness to view the premises as well. Both tenant and landlord should have a copy of the list. On move-out, both parties should inspect the premises and fill in another copy of the list, and negotiate (if possible) or make note of any disputed items.
Can the landlord charge a deposit?
The landlord can charge a security deposit from a tenant. The deposit cannot exceed 2 weeks’ rent if the tenancy is week-to-week, or 1 1/2 months’ rent if the tenancy is month-to-month, or 2 months’ rent for fixed term leases (6 months, 1 year, etc). The landlord can also collect deposits for such things as pets and keys. Unless specifically designated as non-refundable, all deposits should be refunded to the tenant at the conclusion of the rental term, less deductions made for actual damages. Pet deposits are usually designated as non-refundable.
A landlord can also request a deposit to hold a rental unit for a tenant at the time the tenant fills in the rental application. This deposit may not, in certain instances, be refundable if the tenant changes their mind about leasing the premises before the lease is signed and the landlord has not found a replacement tenant before the proposed move-in date. Also, most application fees are non-refundable.
The landlord must deposit all security deposits in a trust account at a bank or savings and loan located in North Carolina, or obtain a bond from a leasing insurance company to secure its repayment, and must notify the tenant in writing of the location of the deposit within 30 days of renting the premises. The landlord is not required to place the deposit in an interest-bearing account.
The landlord has 30 days after the end of the lease term to either refund the full amount of the security deposit to the tenant or to give the tenant a written justification for any deductions. The landlord can apply the security deposit to unpaid rent and late fees, damages to the rental premises, nonfulfillment of the rental period (i.e. the tenant leaves before the end of the rental term or without proper notice), costs incurred by the landlord in evicting a tenant, and unpaid bills (such as utility bills). If the landlord does not have a forwarding address for the tenant, he/she must hold the balance of the security deposit for at least 6 months.
When is the landlord allowed to increase the rent?
The rent cannot be increased during the term of a fixed-term lease unless the lease provides for a rental increase. State law does not address how much notice a landlord is required to give before increasing the rent under a month-to-month rental agreement.
Can the landlord levy additional charges for late rent?
A landlord can assess a late fee of not more than $15 or 5% of the rental payment (whichever is greater) on any rental payment which is 5 days or more late.
How can a lease be terminated?
If the lease is for a fixed term (such as 1 year), it generally cannot be terminated before the end of the term. If the rental is month-to-month, 7 days’ notice must be given.
Can a tenant assign a lease or sublet the premises?
Assignment of a lease or subletting to a third party is generally only allowed with the landlord’s written consent.
When is the landlord permitted to enter the premises?
The landlord has the right to enter, inspect, and make repairs on or show the rental property at reasonable times and in a reasonable manner.
On what grounds can a landlord evict a tenant?
A tenant can be evicted for: (i) non-payment of rent; (ii) breach of the terms of the lease; (iii) holding over after the lease term has ended; (iv) abandoning the premises; (v) engaging in criminal activities in the premises.
The landlord cannot evict a tenant in retaliation for certain protected actions. These protected actions include: (i) Complaints made to the landlord, his employee, or his agent about conditions or defects in the premises that the landlord is obligated to repair; (ii) complaints to a government agency about a landlord’s alleged violation of any health or safety laws; (iii) attempts to exercise rights described in the lease in state or federal law; and (iv) attempts to become involved with any tenants’ rights groups.
The landlord must first obtain an eviction order (writ of possession) from the court before he/she can legally evict a tenant. The landlord cannot lock a tenant out or turn off utilities in lieu of going through the court process.
The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.
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