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    North Carolina Late Fee Law

    North Carolina limits residential late fees by statute. Monthly rent: greater of $15 or 5% of the monthly rent. Weekly rent: greater of $4 or 5% of the weekly rent. One late fee per late payment. If rent is subsidized (HUD, USDA, State agency, public housing authority or local government), the fee is calculated on the tenant's share of the rent only. No late fee for unpaid water/sewer charges. State law requires a grace period of 5 days before a late fee can be charged.

    Last verified: · Researched and cited by MakeLease · not yet attorney-reviewed

    North Carolina late fee law at a glance

    Late-fee capMonthly rent: greater of $15 or 5% of the monthly rent. Weekly rent: greater of $4 or 5% of the weekly rent. One late fee per late payment. If rent is subsidized (HUD, USDA, State agency, public housing authority or local government), the fee is calculated on the tenant's share of the rent only. No late fee for unpaid water/sewer charges.N.C. Gen. Stat. § 42-46(a)-(b)
    Grace period5 daysN.C. Gen. Stat. § 42-46(a), S.L. 2024-47, § 8 (H.B. 556)
    Notice before filing for unpaid rent10 days (10-day demand for past-due rent)N.C. Gen. Stat. § 42-3, N.C. Gen. Stat. § 42-26(a)

    Grace period

    • In effect since .
    • Before : 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.

    What North Carolina law says

    Is there a limit on late fees in North Carolina?

    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)).

    Does North Carolina require a grace period before a late fee?

    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)).

    How much notice must a North Carolina landlord give for 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).

    How North Carolina compares

    20 of 51 verified jurisdictions cap late fees by statute. 4 require a longer grace period than 5 days.

    Tennessee follows the same rule as North Carolina; 3 of its 4 neighbors differ.

    Late-fee cap · grace periodStates
    Statutory formula · 5 daysNorth Carolina, Tennessee
    No state cap · noneGeorgia, South Carolina
    Statutory formula · noneVirginia

    Local rules in North Carolina

    N.C. Gen. Stat. § 42-14.1 bars cities and counties from regulating private-market rent; local rent limits are allowed only for publicly owned, subsidized or CDBG-assisted property, or for owners receiving local funding or incentives.

    Other North Carolina rules

    Security deposit limit2 months' rent (with exceptions)N.C. Gen. Stat. § 42-51(b), N.C. Gen. Stat. § 42-53
    Deposit return deadline30 days after move-outN.C. Gen. Stat. § 42-52
    Entry noticeNo state ruleN.C. Gen. Stat. Ch. 42, Art. 5 (silent on landlord entry), N.C. Gen. Stat. Chapter 42 (silent on landlord entry)
    Rent-increase noticeNo state ruleN.C. Gen. Stat. Chapter 42 (no rent-increase provision), N.C. Gen. Stat. § 42-14
    Month-to-month termination7 days (either side)N.C. Gen. Stat. § 42-14

    Read the North Carolina law

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