A lease in North Carolina is a contractual agreement between the landlord and a tenant. It defines the duties and responsibilities of both the landlord and the tenant once the rent period begins and throughout the tenancy’s duration. Breaking the lease early without proper notice or agreement can also lead to eviction.
Generally, breaking a lease in North Carolina refers to moving out of the rental property before the end of the lease period. The reasons why renters terminate a lease agreement can either be legally justified or not. However, even in legally justified situations, proper procedures outlined in the lease’s early termination clause must be followed, or the tenant may be held liable for any resulting penalties or damages.
When justified, North Carolina tenants only need to provide the landlord with sufficient notice as outlined in the lease’s early termination clause when they terminate or break a lease agreement. However, when there isn't a legal countenance, a penalty fee will be imposed. To navigate such situations effectively, working with an experienced property management company can help ensure compliance with legal requirements and minimize disputes.
Here’s everything you need to know if you find yourself dealing with a renter breaking a lease in North Carolina.
A lease obligates both parties to the lease for a defined time period, typically a year. During this time, landlords can’t change the terms of the lease in North Carolina. For example, the landlord can’t increase the rental amount. Exceptions may apply, such as when a tenant on active military duty needs to terminate the lease under legal protections.
North Carolina landlords can only do so once the lease period has come to an end, or if the rental lease agreement itself has an early lease termination clause allowing it. For example, tenants on active military duty may terminate their lease early under legal protections. Sometimes, landlords will include a note in the early termination clause that tenants can break their lease early with written notice or other special rental provisions.
Also, North Carolina landlords cannot evict tenants out of a rental unit without legal justification. A violation of the terms of the lease, such as failing to pay rent in full or engaging in illegal activities, is enough to justify an eviction. Additionally, breaking the lease early without proper notice or agreement can also lead to eviction.
When a tenant violates the rental agreement by breaking it, you as the landlord need to follow the right process to bring the tenancy to an end, which can sometimes lead to court before the next rent period. In North Carolina, this means you must provide the tenants with a relevant eviction notice for an early lease termination.
If a tenant hasn't been paying rent, the landlord must provide the tenant a proper notice of 10 days. This will give you them options – either to pay the due rent payment or vacate the unit or premises. If neither option is opted by the tenant, you can begin to move forward with the legal eviction process.
According to the North Carolina Law, the landlord must provide the tenants with an unconditional quit notice for serious lease agreements violation like illegal activities. This written notice will inform the tenant to leave immediately. If your tenant will not vacate the rental unit, you can contact your local rule enforcement for assistance.
North Carolina’s tenant laws state that the tenant is legally obligated to pay rent for the entire length of the rental agreement. This is regardless of whether the tenant resides in the unit or not.
There are a few exceptions to this rule, which include:
Under the law, the landlord has a duty to find a replacement tenant as quickly as possible if the tenant breaks the lease early. When a tenant breaks a lease in North Carolina and refuses to pay, it can leave a financial strain on the landlord, so it's always best to replace the tenant and re-rent as soon as possible so that you don't lose income.
You also don't need to relax standards for a replacement tenant. For instance, having to rent to tenants with questionable credit scores, or someone who can't make the rental payment. As fast as possible does not mean anyone who applies, just that you're making a reasonable effort to rent out the rental unit to a good tenant quickly. As long as the effort into marketing and the like exists, you are complying with the law.
Breaking a lease can sometimes be inevitable, but it can be both stressful and financially straining. If you don't want to worry about being in full understanding of the landlord-tenant laws in North Carolina, consider partnering with an experienced management company. We can help with all aspects of property management, as well as provide a free rental pricing analysis!
