Make a North Carolina Month to Month Lease Agreement

What Laws Apply to North Carolina Month-to-Month Lease Agreements?

North Carolina month-to-month lease agreements are governed by Chapter 42 of the North Carolina General Statutes. §42-50 and 42-51 of North Carolina General Statutes explain security deposits. The security deposit may not be more than one and half month’s rent for a month-to-month rental agreement. The landlord is legally required to inform the tenant which FDIC-insured institution the security deposit is held in within 30 days of receiving the deposit from the tenant. The landlord may use the security deposit for:

• Nonpayment of rent;
• Nonpayment of water or other utilities;
• Damage to the rental property that exceeds normal wear and tear;
• The costs associated with renting out the real estate if the move out occurs before the end of the agreement;
• The cost of eviction;
• The cost of removing the renter’s personal property; or
• Court costs or other fees allowed by the court.

Under §42-52, the landlord must return the security deposit within 30 days of the lease termination along with an itemized list of deductions.

Landlords and property managers should understand the state laws to ensure that their interest in the rental property is protected. Seek legal advice if you have questions.

Terminating a North Carolina Month-to-Month Lease Agreement

According to §42-14, the notice period for a month-to-month period is seven days. A written notice is required in the State of North Carolina.