Renting Out Your Property in North Carolina: A Landlord's Guide

Familiarize yourself with North Carolina's Landlord and Tenant Act (Chapter 42 of the NC General Statutes). Pay special attention to security deposit limits, notice requirements for entry, eviction procedures, and maintenance responsibilities. The NC Real Estate Commission website and NC Department of Justice offer helpful resources for landlords.

Check with your local municipality about business license requirements for rental properties. Some North Carolina cities and counties require landlords to obtain a business license or rental permit. Contact your local government office to determine specific requirements for your area.

Some North Carolina municipalities require rental property registration. Check with your local housing authority or code enforcement office to determine if registration is required in your area and complete any necessary paperwork.

North Carolina requires all rental properties to meet minimum housing codes. Schedule inspections if necessary and address any code violations. Properties must be fit for human habitation with working plumbing, heating, electrical systems, and be free from hazards.

Create or obtain a rental application form that collects information about potential tenants, including rental history, employment information, income verification, and references. Ensure your application complies with fair housing laws and doesn't include discriminatory questions. You may charge an application fee in North Carolina, but it should be reasonable and disclosed upfront.

Develop a detailed checklist to document the condition of the property before move-in and after move-out. This will help determine if any damage occurred during the tenancy and whether deductions from the security deposit are justified. Include spaces for both landlord and tenant signatures and dates.

Federal law requires landlords of properties built before 1978 to disclose known information about lead-based paint and provide an EPA-approved pamphlet to tenants. Even if you don't know of any lead paint in the property, you must still provide the disclosure form if the building was constructed before 1978.

North Carolina law requires landlords to provide a written receipt for security deposits. The receipt should include the amount, date received, and where the deposit will be held. In North Carolina, security deposits must be held in a trust account with a licensed and insured bank or savings institution.

Create a document outlining house rules that aren't included in the lease but that tenants must follow. This may include quiet hours, guest policies, parking rules, trash disposal instructions, and maintenance expectations. Rules must be reasonable and cannot contradict terms in the lease or violate fair housing laws.

North Carolina requires landlords to provide reasonable notice before entering a tenant's unit (typically 24-48 hours, except in emergencies). Create a form to document when and why you need to enter the property. This helps maintain good landlord-tenant relations and provides documentation of proper notice.

Create a comprehensive lease agreement that complies with North Carolina law. Include terms for rent amount and due date, lease duration, security deposit amount and conditions for return, maintenance responsibilities, pet policies, and other important terms. North Carolina has specific requirements regarding security deposit limits (one month's rent for month-to-month tenancies, two months' for longer terms) and other lease provisions.

North Carolina law requires security deposits to be placed in a trust account with a licensed and insured bank or savings institution located in North Carolina. Set up this account and be prepared to inform tenants in writing where their deposit is being held.

Obtain appropriate landlord insurance coverage for your rental property. Standard homeowner's insurance typically doesn't cover rental activities. Landlord insurance should include property damage, liability coverage, and potentially loss of rental income coverage.

Establish how you'll collect rent (online payment, check, etc.) and your policies for late payments. North Carolina doesn't have a state law specifying grace periods for rent payments, but your lease should clearly state when rent is due, any grace period, and late fees. Late fees in North Carolina cannot exceed $15 or 5% of the rental payment, whichever is greater.

Establish a clear process for tenants to request repairs and maintenance. North Carolina landlords must maintain fit and habitable premises, including electrical, plumbing, sanitary, heating, and other facilities. Document your maintenance request system to show you're responsive to repair needs.

Use your rental application to screen potential tenants. Check references, verify income, run credit checks, and conduct background checks as appropriate. Ensure your screening process complies with fair housing laws and doesn't discriminate based on protected characteristics. Document your tenant selection criteria to demonstrate consistent, non-discriminatory practices.

Before the tenant moves in, complete the move-in portion of your inspection checklist, documenting the condition of the property with photos or video if possible. Have the tenant review, add comments if needed, and sign the inspection form. This establishes the baseline condition of the property and helps prevent disputes when the tenant moves out.