Most Commonly Used North Carolina Lease Agreements
In the State of North Carolina, the most commonly used lease agreements are a standard residential lease agreement (usually good for a lease term of 12 months), a month-to-month lease agreement, a lease to own agreement, a roommate agreement, a sublease agreement, and a commercial lease agreement.
All most commonly used North Carolina lease agreements share many of the same elements. They also have their own differences. Here are a couple of examples.
- A roommate agreement is a version of a residential lease agreement. It includes all of the same elements, but it also explains which areas of the rental can only be used by the roommate and which areas may be used by any of the occupants.
- A standard residential lease agreement is generally written for a term of one year. When that year ends, it may switch to a month-to-month agreement or it may renew for another year. Both a yearly lease agreement and a month-to-month agreement are similar in many ways. One of the most common similarities is that both generally require a 30-day written notice to move out at the end of the agreement if either party does not plan to renew the agreement.
How to Write a North Carolina Lease Agreement
A North Carolina lease agreement must adhere to the state’s landlord-tenant laws. Otherwise, the document is unenforceable. There are numerous other laws that must also be considered. You’ll learn about a few of those under the sections related to disclosures and security deposits.
Before you sign the lease, you should make sure that you understand its terms. Read it carefully or have the document reviewed by an attorney.
A North Carolina lease agreement should include the following information:
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Name of Parties - This is the landlord’s full name or the property management company’s legal business name and the legal name of the tenant(s).
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Property Address - This is the street address for the rental property, including the city, zip code, and, if applicable, the lot or unit number.
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Term Information - This is the type of lease agreement the parties agree to enter into. For example, a month-to-month lease or a fixed term. A fixed-term lease means that the parties agree that the tenant will hold possession of the space for a certain amount of time, usually one year. If it is a fixed lease, this section should include the date that the lease will end.
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Rental Amount - This section includes the date that the lease will begin, the amount of the monthly rent, the day of the month that the rent is due, and the address where the rent may be paid.
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Late Fee - This section documents the amount of the fee that is due if the rent is not paid by a certain date.
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Security Deposit - This is the amount of money that must be paid in advance of the tenant taking control of the property. A security deposit is used to repair damages caused by the tenant.
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Initial Payment - This is the total amount of money that the tenant must pay to move into the rental property or unit. This should include the amount of the first month’s rent, the security deposit, and the total of the two numbers added together.
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Occupants - This section includes the full name of each tenant even if they are a minor or not signing the lease. This part of the North Carolina residential lease agreement establishes who will reside in the residential unit. For commercial space leases, it designates who have permission to use the space. If the presence of additional occupants changes the price of the rent it should be included in this section.
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Utilities - This section explains which utilities or services a tenant does not pay.
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Parking - This section informs the tenant if they receive a parking space. If a parking space is reserved and there is a designated spot, the spot should be listed in this section.
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Furnishings - This section tells tenants what they are allowed to install (such as a dishwasher or washing machine) or what they may not install. If the tenant is not allowed to bring their own appliances, that should be designated in this section.
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Notices - This section documents the names of the landlord or property manager and tenant along with their mailing address. This contact information is used if the parties need to send out a notice to the other party.
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Evictions - This informs tenants how eviction would be carried out in the event of nonpayment or breach of other lease terms.
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Additional Terms - This section lists any other terms that the parties agreed to that haven’t been included in any other section of the lease agreement.
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Signature and Date - The document should be signed and dated by all parties.
Which Disclosures Belong in a North Carolina Lease Agreements?
A North Carolina landlord must disclose the name and address of the financial institution where the security deposit is held. The landlord must deposit the money into a licensed trust account in North Carolina. If the residential unit was built prior to 1978, landlords must give a lead based paint disclosure under federal law.
What You Need to Know About North Carolina Lease Agreement Deposits
North Carolina state law limits the amount that the landlord may request as a security deposit as 1.5 month’s rent for month-to-month tenancies and no more than two months’ rent for annual ones. Security deposits must be returned within 30 days of the end of the lease. However, if the property has damage, the landlord may send a notice during that 30 days stating that they need another 30 days to get an estimate for the repairs.
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