To minimize issues, a well-crafted North Carolina landlord tenant lease agreement is necessary. This is because a lease agreement is a contractual and legally binding agreement that forms the foundation of the relationship between you and your new tenant.
If you are a landlord in Charlotte, North Carolina and are in need of residential property management expertise
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In any case, here’s what you should include in your North Carolina rental lease agreement.
1. Lease Agreement Term
Generally, North Carolina lease terms are either month-to-month or fixed. Fixed term residential lease agreements usually run for 12 months. Make sure you use the proper terminology. If you don’t, you may find your lease agreements being defined by the North Carolina landlord tenant laws which can sometimes not be favorable to you.
Whether you choose fixed term or month to month leases, your choice should depend on the length of time you want the North Carolina tenant to live on the rental as well as how much control you want.
2. Tenant Names
A contractual lease agreement involves two or more parties. As such, you must name all your renters in your residential lease agreement. Although this may seem straightforward, you might be surprised by the number of North Carolina landlords that often overlook this critical aspect.
In this regard, make sure you list all adults living in the rental unit. And even more importantly, remember to use the name listed on their photo ID.
By listing all adults living in the Charlotte, North Carolina unit, you’ll be making them legally responsible for all North Carolina rental agreement terms. This means that you can even
terminate their tenancy should any of them commit a serious lease agreement violation. You may also be able to seek a months rent from any of them should the others skip out.
3. Property Description
North Carolina Landlords need to provide a legal description of the unit in your North Carolina rental agreements. A good description should be able to identify, describe and locate the unit. You could also make a quick video of the property.
4. Occupancy Limits
To prevent issues of subletting, make
occupancy limits clear on the North Carolina lease agreement. This way you’ll have grounds to end the tenancy in the event that your new tenant violates the clause.
Your residential lease agreement should state that the people permitted to legally live on the property are only the people who have signed the lease agreement.
5. Landlord and Tenant Rights and Duties
All parties to the North Carolina rental agreement have rights and responsibilities. These rights and responsibilities must be tailored depending on the specific property. The residential lease agreement must spell out items like restrictions to tenant repairs and alterations and the renter’s responsibility to keep the premises in clean and sanitary conditions at all times.
When crafting this section, avoid making common mistakes such as demanding that a tenant give up rights already contained in the local Charlotte landlord tenant laws. For example, shifting the cost of repairs and maintenance to the tenant. Or demanding that the tenant forfeit the right to notice prior to a landlord entry to the rental unit.
6. Deposits and Fees
The relationship between a tenant and a landlord isn’t usually without friction. One major cause of such friction is the use and return of security deposits. To avoid issues, your Charlotte, North Carolina rental agreements should be crystal clear on the security deposits maximum, use and refund of security deposits.
Specifically, it should clearly state:
- The security deposit amount – In North Carolina, you can charge two week’s rent for week-to-week tenants. One and a half month’s rent for the month to month tenants. And two month’s rent for anything longer than the month to month tenants.
- How you intend to store the security deposit – Under NC lease laws
, landlords have two options. First, you can elect to post a bond for the security deposit. Second, you can opt to store the renter’s security deposit in a trust account.
- When and how you’ll return the deposit and account for deductions after the tenant moves out – North Carolina rental law requires that you return the tenant’s security deposit within thirty days after the tenant moves out. This is, however, assuming there are no deductions as a result of property damage caused by the renter’s negligence or carelessness.
For more about the security deposit in the state of North Carolina, please
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7. Utilities
North Carolina rental agreements should have clear terms when it comes to utilities. Are they part of the amount of rent? What happens if the tenant fails to pay for them?
8. Rent & Other Fees
Stay out of trouble by listing the exact amount of rent and other fees in your residential lease agreement. List them separately for clarity’s sake.
In terms of rent, besides obviously spelling out exactly how much is due, you should also state:
- Whether there are late fees if the tenant doesn't pay rent when it’s due. In this regard, consider these things:
- Will you charge a daily fee, if so how much?
- Will you charge a flat fee, if so how much?
- What rent payment methods are allowed? Do you accept cash or check?
9. Right of Entry
A Tenant in Charlotte, North Carolina have a right to quiet enjoyment of their homes. This means that a landlord can’t just enter the rental unit whenever they wish. This may constitute tenant harassment. Tenant harassment is illegal.
Generally, landlords are required to give renters at least a days notice prior to their entry. The notice should state the reason for the entry. The entry times must also be reasonable. In North Carolina, there’s no statute that requires you to give your tenant a notice before entering the rental unit. However, a 24 hours’ notice is recommended.
Landlords may enter a rental unit for various reasons. From property maintenance and repairs to emergencies and property abandonment.
10. Pets
Make your pet policy clear on your residential lease agreement. Specify whether pets are allowed or not. If allowed, then carefully spell out your requirements and expectations. For example, state whether you charge a pet deposit and specify the pets you’ll allow.
If you charge a pet deposit, will it be refundable or not? If this is refundable, specify your requirements. For example, it’ll be refundable if the pet doesn’t cause damage or problems on your property. Damage may include scratches on the hardwood floor, stains on the carpet, and so on.
Also, if you allow pets, specify the type and number of pets allowed. Common pets include rabbits, cats, dogs, fish, gerbils, hamsters, reptiles, etc. You could even specify the weight of the pet.
11. Restrictions
Checking a prospective tenant's rental history is one way to mitigate potential issues. Another effective method is to restrict a tenant's illegal activity to avoid potential legal issues. Without restrictions, other tenants may have legal grounds to break their residential lease agreement early if you don’t restrict certain disruptive and illegal behavior.
Your North Carolina rental agreements should clearly state that certain behaviors are prohibited and are grounds for terminating your lease agreements. Such behavior may include excessive noise and criminal acts like drug dealing.
12. Other Restrictions
A lease agreement is only legal if it complies with other relevant laws. Such laws include occupancy rules,
safety and health codes, and anti-discrimination laws stated in Charlotte, North Carolina.
Local laws are also key. As such it’s important to familiarize yourself with them as much as possible. Preferably, seek help from a qualified Charlotte attorney.
North Carolina laws commonly specify required disclosures, rules for changing or ending a tenancy, tenant’s rights to obtain permission to sublet or bring additional roommates, notice requirements for entering the rental property, and setting security deposit laws.
With these important items included in your Charlotte, North Carolina rental agreement, you can be sure that you will have minimal issues with your tenant. Also, if you manage multiple properties in different cities or states, be sure to customize each residential lease agreement so that it conforms to state and federal law.
Looking for more information on
landlord-tenant laws in NC? If so, read our post here.
