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    North Carolina Residential Lease Agreement

    North Carolina caps most security deposits at 2 months' rent (3 exceptions apply), and requires its return within 30 days after move-out.

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    North Carolina lease rules at a glance

    Key North Carolina rules for a residential lease, with the statute behind each
    RuleWhat the law says
    Security deposit cap2 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
    Late feesMonthly 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 · grace period: 5 daysN.C. Gen. Stat. § 42-46(a)-(b), N.C. Gen. Stat. § 42-46(a), S.L. 2024-47, § 8 (H.B. 556)
    Landlord 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)
    Ending a month-to-month lease7 days (either side)N.C. Gen. Stat. § 42-14
    Rent increase noticeNo state ruleN.C. Gen. Stat. Chapter 42 (no rent-increase provision), N.C. Gen. Stat. § 42-14
    Rent controlNone; cities barred from adopting itN.C. Gen. Stat. § 42-14.1, S.L. 2024-47, § 7 (H.B. 556)
    Eviction notice for unpaid rent10 days (10-day demand for past-due rent)N.C. Gen. Stat. § 42-3, N.C. Gen. Stat. § 42-26(a)

    North Carolina lease disclosures checklist

    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 takenN.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 exceedanceN.C. Gen. Stat. § 42-42(a)(6)
    • Lead-based paint disclosure and EPA pamphlet — Housing built before 197842 U.S.C. § 4852d; 40 CFR Part 745 Subpart F

    MakeLease generates a customizable lease; add these North Carolina disclosures and terms.

    Before you sign in North Carolina

    Deposit cap exceptions in North Carolina
    Two months' rent for terms longer than month-to-month; 1.5 months for month-to-month; two weeks for week-to-week N.C. Gen. Stat. § 42-51(b), N.C. Gen. Stat. § 42-53
    • Month-to-month tenancy: up to 1.5 months' rent
    • Week-to-week tenancy (cap is two weeks' rent): no cap
    • Reasonable nonrefundable pet fee may be charged in addition (G.S. 42-53): no cap
    If a deposit is withheld wrongly
    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)
    Deductions from the deposit
    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 the deposit
    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))
    Rent control and increases
    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))

    No statewide rent control; cities and counties may not regulate rent on private residential or commercial property, except for their own property, subsidized/CDBG-assisted units, or owners receiving local funding or incentives.

    • In effect since .
    • Before : 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.
    If rent goes unpaid
    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))

    North Carolina lease FAQs

    How much can a landlord charge for a security deposit in North Carolina?

    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)).

    How long does a North Carolina landlord have to return a security deposit?

    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).

    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)). 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 before entering a rental?

    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)).

    How much notice ends a month-to-month tenancy in North Carolina?

    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).

    What disclosures does a North Carolina lease need?

    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). The list covers Name and address of the bank/institution holding the security deposit, or the name of the insurance company providing the bond, Notice that supplied water exceeds a maximum contaminant level and Lead-based paint disclosure and EPA pamphlet.

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