NC · Researched October 7, 2026
North Carolina caps late fees at $15 or 5% of rent (whichever is greater) after 5 days, and deposits at 1.5 or 2 months' rent depending on lease type. Month-to-month tenancies end with just 7 days' notice, and local rent control is banned. Managing rentals for others requires a real estate broker license from the NC Real Estate Commission.
Anyone who, for compensation, leases or offers to lease, or rents or offers to rent real estate for others is a real estate broker and must be licensed by the Commission.
Individual owners leasing their own property; owner entities and their W-2 officers and employees; salaried employees of a licensed broker limited to showing units, giving lease information, taking applications, completing preprinted leases, and accepting payments made out to the owner or broker; attorneys; court-appointed fiduciaries and trustees; housing authorities.
Brokers must deposit money held for others in a trust or escrow demand deposit account at a federally insured institution doing business in North Carolina, with no commingling and no interest unless the principals authorize it in writing. Tenant security deposits must also follow G.S. 42-50.
Deposits may cover unpaid rent and utilities, damage, early termination losses, re-renting costs, post-eviction storage, court costs and fees allowed by G.S. 42-46. A reasonable nonrefundable pet fee is allowed.
If damages cannot be set within 30 days, send an interim accounting and a final one within 60 days. If the tenant's address is unknown, hold the balance at least 6 months. Willful violations void your right to keep any of the deposit and can bring attorney fees.
Within 30 days of the lease start, tell the tenant the name and address of the bank or bond company. An out-of-state account is allowed only with a bond. When you sell, transfer the deposit within 30 days and notify the tenant.
Count the 5 days starting the day after rent is due. Weekly rent: greater of $4 or 5%. One late fee per late payment, and it cannot be deducted from the next rent to create a new default. On subsidized units, figure fees on the tenant's share only. Lease terms that break these rules are void.
Chapter 42 has no application or screening fee section. Keep fees reasonable and disclosed. Fees tied to eviction filings are limited to those listed in G.S. 42-46.
Chapter 42 has no rent increase notice section. Raise rent at the end of a lease term or as the lease allows. For a month-to-month tenancy, the 7-day notice to quit sets the practical minimum. Check the lease for longer notice terms.
Cities and counties cannot regulate rent on private residential property. Since September 9, 2024, they also cannot bar landlords from refusing tenants whose rent comes partly from a federal housing assistance program.
Under G.S. 42-3 the lease is forfeited if rent is not paid within 10 days after you demand all past-due rent. If the lease says the tenancy ends on nonpayment, you may file summary ejectment under G.S. 42-26(a)(2) on the lease terms instead. Unpaid water, sewer, or electric charges cannot be the basis for ending the lease.
Summary ejectment for a breach works only if the lease says the tenancy ends for that breach, and you must demand possession before filing. If the lease says so, accepting partial rent or a partial subsidy payment does not waive the breach.
Manufactured home lot rentals need 60 days' notice regardless of term.
The summons sets a hearing no more than 7 days after issuance, not counting weekends and holidays. Service is by mail plus a sheriff phone call, visit, or posting. Either side has 10 days after judgment to appeal, and a summary ejectment appeal is dismissed if court costs are not paid within 10 days. A tenant who appeals can stay the eviction by paying undisputed back rent and signing an undertaking to pay rent into court. The sheriff gives notice of the lockout time and must execute the writ within 5 days.
Release items on request during those 7 days. If everything left is worth less than $500, it is deemed abandoned 5 days after the writ is executed and may be discarded. Property worth $750 or less can instead go to a charity that holds it 30 days. Abandonment is presumed 10 days after posting a notice of suspected abandonment inside and outside the unit.
Chapter 42 has no landlord entry or notice section. Write entry rules into the lease, give reasonable notice, and enter at reasonable times unless there is an emergency.
Repair facilities and appliances promptly after written notice (except emergencies). Provide working smoke alarms (repair within 15 days of written notice) and carbon monoxide alarms where required.
An exempt unlicensed manager acting for an owner entity must disclose in writing that they are unlicensed and the exemption used. Prior death, illness or nearby sex offenders are not material facts, but do not lie if asked.
State list: race, color, religion, sex, national origin, handicapping condition and familial status. Owner-occupied buildings of up to 4 units are exempt. Local source-of-income protections are preempted.
Cities and counties may not ban refusal to rent because a tenant's rent includes federal housing assistance. The act became law over the Governor's veto on September 9, 2024.
The 5-day wait before a late fee is counted starting the day after rent is due.
Magistrate judgments must order the clerk to pay landlords rent bonded during a tenant appeal within 5 business days of a written request. Applies to judgments rendered on or after October 1, 2024.
Leases cannot require a specific insurer or agent. If a tenant does not show proof of required coverage within 3 business days of a request, you may charge the actual cost of coverage you buy plus up to $50 a year.
Two 2025 acts removed the 2024 requirement that a landlord be the prevailing party to recover lease-based attorney fees (capped at 15%), retroactive to September 9, 2024.
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Compare with other states: security deposit limit, deposit return deadline, deposit interest and holding rules, late fees, application and screening fees, rent increase notice, rent control, notice for unpaid rent, notice for lease violations, ending a month-to-month, eviction timeline, abandoned property, landlord entry, repairs and habitability, required disclosures, state fair housing protections.