Landlord-tenant relations could be a lot easier if both parties understood the laws in their state. With education, landlords could provide a fairer experience to tenants, and they would receive fewer complaints because tenants better understood their rights and expectations.
North Carolina has 10 million renting residents, and it’s a very landlord-friendly state. There’s a lot of North Carolina land for sale, just waiting for you to buy it and lease it out. If you’re renting out property to tenants in N.C., here are a few laws you should understand.
You need a rental agreement for tenancies lasting longer than a year.
If you’re renting out property for terms less than 12 months, it’s strongly recommended, but not required by law, that you have a rental agreement. Drafting a strong contract protects both you and your tenant while outlining your responsibilities and those of your tenants.
To sign the rental agreement, a tenant must be at least 18 years old. You may want to include a copy of their driver’s license or legal ID to document the fact that they are over 18 years of age.
Drafting a rental agreement can be somewhat daunting for landlords, particularly those new to the game. Using free landlord software to handle rental agreements, tenant screening, rent payments, and more will make the process simple and error-free.
Security deposits are not required by law.
Contrary to popular belief, no law states that you are required to have a security deposit. However, if you include the requirement in your lease agreement, the law will support this legally binding agreement.
If you ask for a security deposit, you must return it within 30 days of vacancy unless you use it to cover damages, such as wear and tear, obvious tenant damage, and unpaid rent or utility bills. Additionally, you must disclose the name and address of the bank or credit union where you are keeping tenants’ security deposits.
Because it’s not required, sometimes tenants will ask that the security deposit be removed before signing the agreement. However, this is not recommended. A security deposit is like your insurance policy without the risk of rising insurance rates.
You do not have to notify tenants of entry.
Because you own the property, you technically are not required to notify the tenant of entry. This includes non-emergency maintenance situations, emergencies, prospective showings, noise complaints, or other reasons.
Still, tenants may feel like you’re violating their privacy if you fail to notify them before entry. This can decrease tenant longevity and cause other problems that you won’t enjoy dealing with. You’ll be backed up by law if you must enter a unit without notifying the tenant, but it’s much better for your relationship and long-term residency if you send a quick email at least a few hours before coming over.
State laws regulate late fees.
If a tenant is late on the rent, you must adhere to North Carolina state law in determining when and how much to charge them for overdue rent or utility fees. They have 10 days to make payments, after which you may issue an eviction notice if you wish.
If you’d like to give them more than 10 days to make payments, you are within your rights to do so, but you can’t evict them prior to 10 days. Lay out the rules in your lease agreement so that tenants are aware of the rules ahead of time.
With this in mind, remember that tenants do have a right to withhold rent if you fail to take care of certain repairs or meet your lease agreement. For example, if you fail to take care of a broken heater in the middle of winter, they may refuse to pay rent until it’s handled.
