TurboTenant’s North Carolina lease agreement has been written and reviewed by North Carolina lawyers and landlords. It’s been drafted to keep you compliant and covered as you rent out your property.
Click this link to see an example of the North Carolina Lease Agreement.
The North Carolina lease agreement is split up into three sections.
Section 1 contains information specific to you, your tenants, your rental property, and the details of your lease. This is all information that you add during the lease creation process in TurboTenant.
Section 2 contains clauses in accordance with North Carolina law. In order to stay compliant with the law, you will not be able to edit any details in Section 2.
Section 3 contains general clauses for landlords in the United States. It was drafted with best practices in mind for the landlord, tenant relationship. Like Section 2, you will not be able to edit these details.
While you may not edit all of the specifics directly, remember you can add additional provisions that supersede any existing language in the lease by using the Additional Provisions section. This gives you customization and flexibility should you have unique things you want to ensure are covered in your lease.
Section 1 - Custom to You
Section 1 contains the custom details relevant to you, your tenants, and your rental property— who is on the lease, rent amount, utilities, etc. You’ll add these details during the lease creation process.
We’ve set up the lease agreement in a way that is easy for you and your tenants to understand. You’ll see the main details you’ve added to the summary table at the front of the lease agreement. The remaining items—like smoking, utilities, keys, etc.—are outlined in the rest of Section 1 as you can see in this example North Carolina Lease Agreement.
Here are a couple of other items in Section 1 worth mentioning:
Additional Provisions: this is where you can add any property specific rules, necessary local clauses, or other specifics you want to include. We recommend that you review any additional provisions with a lawyer.
Lost Key: if your tenants do not return all keys to you when they move out then they are required to pay for the full cost of rekeying the property.
Section 2 - Specific to North Carolina
Section 2 includes language that is specific to North Carolina. In order to help make sure you stay compliant with local laws, we’ve not allowed you to edit the details here.
There are some clauses in Section 2 that we wanted to call out so you understand how it affects you and your tenants.
Late Fees - Section 2.1
Rent is due in full on the 1st of every month. If your tenants do not pay the full rent amount by 5:00 pm on the fifth (5th) day of each month, then you are entitled to charge a late fee of the greater of 5% of the unpaid rent amount, or $15. So for example, if today is the 6th and your tenants have not paid their $1,000 monthly rent amount, then you may charge them a late fee of $50. However, if the fifth day of the month is a Sunday or legal holiday, this can be extended to be paid on the next business day. This is a one-time fee each month based on the unpaid balance.
Security Deposit Provisions - Section 2.4
Security deposits requirements may vary quite a bit from state to state. In North Carolina:
The security deposit shall not exceed an amount equal to one and one-half months' rent if a tenancy is month-to-month, and two months' rent for terms greater than month-to-month.
Landlords are required to provide the name and location of the bank/depository, and deposit the security deposit separate from their personal funds.
Landlords are not required to pay interest on the security deposit to the tenant.
Within 30 days after obtaining possession of the premises the landlord shall return to the tenant the security deposit which was deposited with the landlord by the tenant.
If the tenant's address is unknown the landlord shall apply the deposit as permitted and the landlord shall hold the balance of the deposit for collection by the tenant for at least six months.
Security Deposit Provisions - Section 2.15
We include a provision, that is valid in North Carolina, that says all accidental damage is the responsibility of the tenant. This provides extra coverage for you.
The clauses in Section 3 are standard to most lease agreements. Along with the rest of the lease agreement, we worked with experienced landlords to make sure you are following best practices in your lease agreement.
Subletting - Section 3.1
Your tenant is not at all allowed to sublease the rental property without your written permission.
Altering or Improving the Property - Section 3.2
Your tenant cannot make any alterations or improvements—like repainting—without your written consent. Unless agreed upon, when they move out, the property must be in the same condition that it was in when they moved in.
Choice of Law - 3.11
North Carolina requires that the rental agreement be governed and construed in accordance to their own laws. Also there is a requirement to consent to the use of the county courts in which the property is located.
Follow the Law (noise, drugs, etc.) - Section 3.14
Your tenant cannot break any law or ordinance (federal, state, or local) while on your rental property. This also includes a clause saying they are not allowed to be annoying or a nuisance to neighbors while on the property. Any of the above can be good grounds for terminating the lease agreement.
Missing something you want to make sure is included?
This article only includes an overview of some of the details included in the North Carolina Lease Agreement. You can read the whole agreement and double-check for specific details by clicking this link to see an example of the agreement.
We wanted our lease agreement to handle the majority of use cases for landlords in North Carolina. However, we do know that some rental situations are unique. If there are other specifics you want to outline in the lease agreement, you can do so in the Additional Provisions section while creating your lease agreement in TurboTenant. We recommend that you review them with a lawyer to ensure you stay compliant with the law.
DISCLAIMER: This lease agreement is not warrantied, either expressly or implied, by TurboTenant, Inc. as to their effectiveness or completeness. TurboTenant, Inc. does not provide legal advice. TURBOTENANT, INC. AND ITS SERVICES, DOCUMENTS, RECORDS, AND PRODUCTS ARE NOT A SUBSTITUTE FOR THE ADVICE OF AN ATTORNEY. The user is advised to check all applicable state and federal laws before using this agreement, attachments, disclosures, forms, or parts thereof and to have them reviewed by competent legal counsel prior to use.