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What to Include in Your Charlotte Rental Agreement

dawsonpropertymgt • April 2, 2018

 

To minimize issues, a well-crafted North Carolina landlord tenant lease agreement is necessary. This is because leases are a legal contract 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 contact our company today!

 

 

In any case, here’s what you should include in your North Carolina lease agreement as per the requirements of the North Carolina law.

 

1.   Lease Agreement Term

 

Generally, rental agreement terms are either month-to-month or fixed. Fixed term residential lease agreements usually run for 12 months. As a landlord, make sure you use the proper terminology in the lease agreement. If you don’t, you may find your leases being defined by the North Carolina landlord tenant laws which can sometimes not be favorable to you.

 

 

Whether you choose fixed term lease agreement, month to month tenancies or week to week leases, your choice should depend on the length of time you want the North Carolina tenants to live on the rental property as well as how much control you want when renting out your property.

 

 

2.   Tenant Names

 

A contractual North Carolina lease agreement involves two or more parties. As such, as a landlord, you must name all your renters in your North Carolina lease agreements. Although this may seem straightforward, you might be surprised by the number of North Carolina landlords that often overlook this critical aspect in the lease agreement.

 

 

In this regard, make sure you list all adults living in the rental property. And even more importantly, remember to use the name listed on their photo ID.

 

 

By listing all adults living in the Charlotte, North Carolina property or unit, you’ll be making them legally responsible for all lease agreement terms. This means that as a landlord, you can even terminate their tenancy should any of them commit a serious lease agreement violation. A landlord may also be able to seek a months rent from any of them should the others skip out.

 

North Carolina sublease agreement

 

3.   Property Description

 

North Carolina landlords need to provide a legal description of the property in your lease agreements. A good description should be able to identify, describe and locate the unit. A landlord could also make a quick video of the rental 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 rental property are only the people who have signed the lease agreement.

 

 

5.   Landlord and Tenant Rights and Duties

 

All parties to the lease agreement have rights and responsibilities including both the tenant and the landlord. These rights and responsibilities in the lease agreement 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 tenants. Or demanding that the tenants forfeit the right to notice prior to a landlord entry to the rental unit.

 

 

6.   Deposits and Fees

 

The relationship between tenants and landlords isn’t usually without friction. One major cause of such friction between a landlord and tenants 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 payments 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 amount – 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 amount 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, maintenance or carelessness.

 

For more about the security deposit in the state of North Carolina, please click here .

 

pay security deposit

 

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? What will you do as a landlord?

 

 

8.   Rent & Other Fees

 

As landlords, stay out of trouble by listing the exact amount of monthly 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, as a landlord, 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 for the unpaid rent, 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 when the tenants pay the due amount?

 

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 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 in the premises. 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 lease agreement 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 lease 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.

 

 

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