Landlord-Tenant Law Guide
North Carolina Landlord-Tenant Laws
North Carolina's landlord-tenant law is codified in the Residential Rental Agreements Act and the Tenant Security Deposit Act. The deposit rules are strict in terms of where deposits must be held and how quickly they must be returned.
Key Rules at a Glance
Security Deposit Limit
1.5 months (weekly) / 2 months (monthly/annual)
For week-to-week: 2 weeks rent. For month-to-month: 1.5 months. For longer leases: 2 months.
Deposit Return Deadline
30 days
Itemized statement must be mailed within 30 days. If final damages unknown, an interim accounting may be sent in 30 days with a final within 60 days.
Deposit Holding Requirement
Trust account or bond required
Must be held in a licensed North Carolina depository, in a trust account or bonded by a licensed insurance company.
Notice to Enter
No statute
No required notice period in NC. Reasonable notice (24 hours) is best practice.
Rent Increase Notice
One rental period
For monthly tenants, at least 30 days before the next due date.
Late Fee
$15 or 5% of rent (whichever is greater)
Statutory cap on late fees. Cannot be charged until rent is 5 days past due.
Nonpayment Eviction Notice
10-day notice to pay or quit
Written notice giving tenant 10 days to pay or vacate before landlord may file for summary ejectment.
Disclaimer:North Carolina's deposit holding requirements (trust account or bond) are often overlooked by DIY landlords. Non-compliance can void your right to keep the deposit. Verify with a NC real estate attorney.
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Open →Frequently Asked Questions
How long does a North Carolina landlord have to return a security deposit?
30 days from move-out, with an itemized written statement mailed to the tenant's last known address. If final repair costs aren't known in 30 days, you may send an interim accounting in 30 days and a final accounting within 60 days.
Where must I hold a security deposit in North Carolina?
In a trust account at a licensed North Carolina bank or savings institution, OR secured by a bond from a licensed surety company. You must tell the tenant the name and address of the institution where the deposit is held.
What is the maximum late fee in North Carolina?
The greater of $15 or 5% of the monthly rent. Late fees cannot be charged until rent is 5 calendar days past due.
How do I evict a tenant in North Carolina for non-payment?
Serve a written 10-day notice to pay rent or quit. If not paid within 10 days, file a complaint for summary ejectment in small claims court. A hearing is typically set within 7 days.
What is the security deposit limit in North Carolina?
For month-to-month tenancies: 1.5 months rent. For fixed-term leases of 1 month or longer: 2 months rent. For week-to-week tenancies: 2 weeks rent.