On this page
- Make your North Carolina lease
- North Carolina security deposit caps depend on the tenancy
- NC late fee limits
- North Carolina lease rules at a glance
- Move-out: the 30 and 60 day accounting
- What a North Carolina deposit can pay for
- Repairs, smoke alarms and other fees
- Using this NC lease agreement template
- Frequently asked questions
Make your North Carolina lease
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North Carolina Residential Lease Agreement
1. Parties
This Residential Lease Agreement (the "Lease") is between ("Landlord") and ("Tenant"). If more than one person signs as Tenant, each of them is fully responsible for all of Tenant's obligations under this Lease.
2. Property
Landlord rents to Tenant the residence at (the "Property"), including (parking, storage, appliances or furniture included, if any).
3. Term
This Lease begins on and ends on . If Tenant stays after the end date with Landlord's written consent, the tenancy continues from month to month on the same terms unless the parties sign a new lease or the law where the Property is located provides otherwise.
4. Rent
Tenant will pay rent of per month, in advance, on or before the day of each month, by .
If this Lease starts on a day other than the rent due day, rent for the first partial month is , calculated by dividing the monthly rent by the number of days in that month and multiplying by the number of days Tenant has the Property.
5. Late charges and returned payments
If rent is not received in full within days after it is due, Tenant will pay a late charge of . Tenant will pay for any payment returned unpaid by the bank. No late charge or fee will be more than the law where the Property is located allows.
6. Security deposit
Tenant will pay a security deposit of before moving in. Landlord will hold, apply and return the deposit as required by the law where the Property is located. After Tenant moves out, Landlord will return the deposit, less any lawful deductions with a written itemized list, within the time that law requires. Tenant may not use the deposit as the last month's rent without Landlord's written consent.
7. Occupants and use
Only Tenant and these people may live at the Property: . Tenant will use the Property only as a private residence, follow all laws, and not disturb neighbors.
8. Utilities
Tenant will pay for these utilities and services: . Landlord will pay for all other utilities and services, if any, that serve the Property.
9. Pets
Pets allowed (describe, or write "none"): Pet deposit, if any: . This does not limit assistance animals that Landlord must allow under fair housing law.
10. Smoking
Smoking rules:
11. Maintenance and repairs
Tenant will keep the Property clean and safe, use appliances and fixtures properly, and promptly report any needed repairs to Landlord in writing. Landlord will make repairs the law requires. Tenant will pay for damage caused by Tenant, other occupants or guests, beyond normal wear and tear.
12. Alterations and locks
Tenant will not paint, make alterations, or add or change locks without Landlord's written consent.
13. Landlord entry
Landlord may enter the Property at reasonable times to inspect, make repairs or show it, after giving Tenant at least hours' notice, or any longer notice the law requires. Landlord may enter without notice in an emergency.
14. Subletting and assignment
Tenant will not sublet the Property or assign this Lease without Landlord's written consent.
15. Moving out
When this Lease ends, Tenant will leave the Property clean and in the same condition as at move-in except for normal wear and tear, return all keys, and give Landlord a forwarding address in writing.
16. Security deposit (N.C. Gen. Stat. 42-50 to 42-56)
Landlord will hold the security deposit in a trust account with a licensed and federally insured depository institution or trust institution authorized to do business in North Carolina, or will furnish a bond from an insurance company licensed in North Carolina. Within 30 days after this Lease begins, Landlord will tell Tenant the name and address of the bank or institution, or the insurer: .
Within 30 days after the tenancy ends and Landlord has possession, Landlord will mail or deliver to Tenant a written itemized list of any damage with the balance of the deposit. If the claim cannot be determined in 30 days, Landlord will send an interim accounting by then and a final accounting within 60 days. Nothing will be withheld for normal wear and tear.
17. Late fee (N.C. Gen. Stat. 42-46)
A late fee may be charged only if a rent payment is five calendar days or more late, counting from the day after it was due, only once for each late payment, and will not exceed fifteen dollars or five percent of the monthly rent, whichever is greater.
18. Pet fee
Any pet fee is a reasonable, nonrefundable fee for pets kept at the Property: .
19. Disclosures
Was the Property built before 1978? If yes, the federal lead-based paint disclosure, signed by both parties, is attached, and Tenant received the EPA pamphlet Protect Your Family From Lead in Your Home.
Other disclosures or addenda attached:
20. Notices
Notices to Landlord go to: . Notices to Tenant go to the Property address, or to any other address Tenant gives Landlord in writing.
21. Governing law and entire agreement
This Lease is governed by the law of North Carolina, where the Property is located. If any part of this Lease is invalid or conflicts with that law, that part is limited to what the law allows and the rest of the Lease stays in effect. This Lease, with any attached addenda, is the entire agreement. Any change must be in writing and signed by Landlord and Tenant.
22. Additional terms
Signatures
This North Carolina lease agreement template builds in the Tenant Security Deposit Act and the late fee statute. Choose a fixed term or month to month and the deposit check follows the right cap; set a late fee and it checks the 5-day wait and the $15 or 5% limit.
North Carolina security deposit caps depend on the tenancy
The statute ties the cap to how rent runs: "two weeks' rent if a tenancy is week to week, one and one-half months' rent if a tenancy is month to month, and two months' rent for terms greater than month to month" (N.C. Gen. Stat. 42-51(b)).
Month to month at $1,200
Most you can hold: $1,800 (1.5 x rent).
One-year lease at $1,200
Most you can hold: $2,400 (2 x rent).
The money may be used only for the items the statute lists, such as unpaid rent, damage, the cost of re-renting after a breach and court costs (42-51(a)). It must sit in a trust account or be covered by a bond, and the tenant must learn where "within 30 days after the beginning of the lease term" (42-50). A willful failure to follow the deposit, bond or notice rules can "void the landlord's right to retain any portion of the tenant's security deposit" (42-55).
NC late fee limits
North Carolina sets both the timing and the size: a late fee is chargeable "only if any rental payment is five calendar days or more late, with the first day being the day after the rent was due" (42-46), and it "may be imposed only one time for each late rental payment."
North Carolina lease rules at a glance
| Rule | North Carolina | Statute |
|---|---|---|
| Deposit, week to week | Up to two weeks' rent | 42-51(b) |
| Deposit, month to month | Up to one and one-half months' rent | 42-51(b) |
| Deposit, longer terms | Up to two months' rent | 42-51(b) |
| Holding the deposit | Trust account in a licensed, insured institution or a bond; tell the tenant where within 30 days | 42-50 |
| Returning it | Itemized list and balance within 30 days; interim then final accounting within 60 days if needed | 42-52; 42-52 |
| Late fee | From 5 calendar days late; greater of $15 or 5% of monthly rent; once per late payment | 42-46 |
| Pet fee | A reasonable, nonrefundable pet fee is allowed | 42-53 |
| Ending month to month | 7 days' notice; week to week 2 days; year to year 1 month | 42-14 |
| Landlord entry | No notice period set in Chapter 42; set one in the lease | Chapter 42 |
From the North Carolina General Statutes on ncleg.gov, read November 2, 2026. The deposit act applies to anyone in the business of renting or managing residential units, "excluding single rooms" (42-56). A template, not legal advice.
Move-out: the 30 and 60 day accounting
Within 30 days after the tenancy ends and you have the keys back, mail or deliver an itemized list of damage with the balance. If repair costs are not known yet, send an interim accounting at 30 days and a final one "within 60 days after termination of the tenancy" (42-52). Normal wear and tear cannot be charged (42-52); compare the unit against a signed move-in checklist.
What a North Carolina deposit can pay for
Allowed uses
- Unpaid rent and certain water, sewer and electric charges (42-51(a)(1)).
- "Damage to the premises, including damage to or destruction of smoke alarms or carbon monoxide alarms."
- Re-renting costs after the tenant breaks the lease, including a broker's reasonable fee (42-51(a)(5)).
- Court costs and fees the late fee statute allows (42-51(a)(7)-(8)).
Not allowed
- Normal wear and tear.
- More than your actual damages.
- Keeping the money after a willful failure to use a trust account or bond, or to send the 30-day bank notice.
If you do not know where the tenant went, apply the deposit after 30 days and hold any balance "for at least six months" for the tenant to collect (42-52).
Repairs, smoke alarms and other fees
North Carolina landlords must "Make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition" and provide operable smoke alarms (N.C. Gen. Stat. 42-42). Besides the late fee, a written lease may provide for one administrative fee per eviction complaint: a complaint-filing fee of up to $15 or 5% of the monthly rent, whichever is greater, if the tenant cures and you dismiss before judgment (42-46(e)); a court-appearance fee of 10% of the monthly rent if you win in small claims (42-46(f)); or a second trial fee of up to 12% after an appeal (42-46(g)). You may charge and keep "only one of the above fees" for each complaint. On weekly rent the late fee cap is "four dollars ($4.00) or five percent (5%) of the weekly rent, whichever is greater."
Using this NC lease agreement template
- Pick the term first; it decides whether your deposit cap is 1.5 or 2 months' rent.
- Write the bank or bond details into the deposit section, or send them within 30 days.
- Set the grace period to at least 5 days and keep the fee within the chart above.
- Sign, keep a copy each, and record the unit's condition on move-in day.
- At move-out, account for the deposit within 30 days with the deposit return letter.
For short notice periods see the month-to-month lease and the lease termination letter. The general version is our lease agreement template.
Frequently asked questions
What is the maximum security deposit in North Carolina?
Two weeks' rent for week-to-week tenancies, one and one-half months' rent for month to month, and two months' rent for longer terms (N.C. Gen. Stat. 42-51).
How much can a landlord charge for a late fee in North Carolina?
On monthly rent, $15 or 5% of the rent, whichever is greater, and only once rent is five calendar days or more late. It can be charged once per late payment.
How long does a North Carolina landlord have to return a deposit?
30 days after the tenancy ends and the landlord gets possession, with an itemized list. If damage costs are not known, an interim accounting at 30 days and a final one within 60.
How much notice ends a month-to-month lease in North Carolina?
Seven days. A week-to-week tenancy needs two days and a year-to-year tenancy one month (N.C. Gen. Stat. 42-14).
Can a North Carolina landlord charge a pet fee?
Yes. The statute allows a reasonable, nonrefundable fee for pets kept at the property.