North Carolina Landlord-Tenant Law

Maximum deposit

A security deposit may not exceed two weeks' rent for a week-to-week tenancy, 1.5 months' rent for a month-to-month tenancy, or two months' rent for any longer term (N.C. Gen. Stat. § 42-51(b)). (N.C. Gen. Stat. § 42-51(b), N.C. Gen. Stat. § 42-53)

Return deadline

Landlords must return the deposit balance with a written itemization within 30 days after the tenancy ends and possession is returned; if damages cannot be determined by then, an interim accounting is due within 30 days and a final accounting within 60 days (N.C. Gen. Stat. § 42-52). (N.C. Gen. Stat. § 42-52)

Itemized deductions

Landlords must itemize any damage in writing and mail or deliver it to the tenant with the deposit balance (N.C. Gen. Stat. § 42-52). (N.C. Gen. Stat. § 42-52)

Interest on deposits

North Carolina law does not require landlords to pay interest on security deposits, though deposits must be held in a trust account or covered by a bond (N.C. Gen. Stat. § 42-50). (N.C. Gen. Stat. Ch. 42, Art. 6 (silent on interest))

Penalty for wrongful withholding

A landlord who willfully fails to follow the trust-account/bond or notice rules forfeits the right to keep any part of the deposit, and a tenant may recover damages and, for willful noncompliance, attorney's fees (N.C. Gen. Stat. § 42-55). (N.C. Gen. Stat. § 42-55)

Late-fee limit

For monthly rent, a late fee may not exceed the greater of $15 or 5% of the monthly rent (weekly rent: greater of $4 or 5%), charged only once per late payment (N.C. Gen. Stat. § 42-46(a)-(b)). (N.C. Gen. Stat. § 42-46(a)-(b))

Grace period

A late fee may be charged only once rent is five calendar days or more late, counting the day after the due date as day one, so rent due on the 1st can incur a fee no earlier than the 6th (N.C. Gen. Stat. § 42-46(a)). (N.C. Gen. Stat. § 42-46(a), S.L. 2024-47, § 8 (H.B. 556))

• In effect since September 9, 2024.
• Before September 9, 2024: Statute said a fee was chargeable only if rent was 'five calendar days or more late' without specifying how to count; S.L. 2024-47 added that the first day is the day after rent was due, as a clarifying amendment.

North Carolina has no statute setting a notice period for landlord entry, so follow the lease's entry clause and give reasonable advance notice (24 hours is common practice) except in emergencies to avoid breaching the tenant's right to quiet enjoyment (N.C. Gen. Stat. Ch. 42, Art. 5). (N.C. Gen. Stat. Ch. 42, Art. 5 (silent on landlord entry), N.C. Gen. Stat. Chapter 42 (silent on landlord entry))

Either party may end a month-to-month tenancy with a notice to quit given at least seven days before the end of the current rental month (N.C. Gen. Stat. § 42-14). (N.C. Gen. Stat. § 42-14)

North Carolina has no statute on rent-increase notice, so rent is fixed for a lease term unless the lease says otherwise, and a month-to-month increase should be given at least seven days before the next rental period, the same notice needed to end the tenancy (N.C. Gen. Stat. § 42-14). (N.C. Gen. Stat. Chapter 42 (no rent-increase provision), N.C. Gen. Stat. § 42-14)

North Carolina has no rent control and bars cities and counties from regulating the rent charged for private rental property (N.C. Gen. Stat. § 42-14.1). (N.C. Gen. Stat. § 42-14.1, S.L. 2024-47, § 7 (H.B. 556))

• In effect since September 9, 2024.
• Before September 9, 2024: Rent-control preemption only (since 1987); S.L. 2024-47 also preempted local source-of-income (federal housing assistance) rules and added an exception for owners receiving local funding or incentives.

Landlords must tell tenants within 30 days where the security deposit is held (or which insurer bonds it), give the federal lead-paint disclosure for pre-1978 housing, and notify tenants of known water contamination when billing for water (N.C. Gen. Stat. §§ 42-50, 42-42(a)(6); 42 U.S.C. § 4852d). (N.C. Gen. Stat. § 42-50, N.C. Gen. Stat. § 42-42(a)(6))

• Name and address of the bank/institution holding the security deposit, or the name of the insurance company providing the bond (Within 30 days after the lease term begins, when a deposit is taken) — N.C. Gen. Stat. § 42-50
• Notice that supplied water exceeds a maximum contaminant level (Landlord bills tenants for water/sewer and has actual knowledge of the exceedance) — N.C. Gen. Stat. § 42-42(a)(6)
• Lead-based paint disclosure and EPA pamphlet (Housing built before 1978) — 42 U.S.C. § 4852d; 40 CFR Part 745 Subpart F

Unpaid rent

Before filing to evict for unpaid rent, make a clear demand for all past-due rent and wait at least 10 days for payment (N.C. Gen. Stat. § 42-3). (N.C. Gen. Stat. § 42-3, N.C. Gen. Stat. § 42-26(a))

Lease violations

North Carolina sets no statutory notice or cure period for lease violations; a landlord can evict for a breach only if the lease has a forfeiture (re-entry) clause covering it and the landlord follows the lease's termination procedure exactly (N.C. Gen. Stat. § 42-26(a)(2)). (N.C. Gen. Stat. § 42-26(a)(2))