What Landlords Need to Know About Lease Renewals in North Carolina

What Landlords Need to Know About Lease Renewals in North Carolina

Now more than ever, Americans are renting houses rather than purchasing them. Rising housing prices and depleted inventory has played a part in the decision.

If you are a landlord in North Carolina, you most likely have quite a lot on your hands. The North Carolina legislature recently passed a bill affecting lease renewals. 

There are positives and negatives to every law. Lease renewals can be jarring for landlords just as much as for tenants. However, North Carolina lease enforcement is favorable to landlords. 

The key to gaining and keeping new tenants is making certain leases are fair to the property owner and the tenant. Here's how to make lease renewals easy for everyone.

Notify Tenants in Advance When Lease Renewals are Coming Up

It's a best practice to send tenants a lease renewal offer in advance. The norm is 90 days. However, you're required to provide a 60-day notice, the extra time to decide if they want to renew. The current requirement for a notice of non-renewal for renters is 60 days.

You can send the notice in writing to the tenant at the property address or upload it to the tenant portal.

Include essential information such as the property address and the date that the current lease agreement expires. 

Can a Landlord Automatically Renew a Lease?

Property owners in North Carolina have the option of automatic lease renewals. The auto-renewal goes into effect if the landlord or the renter presents no notice of lease termination. 

An alternative to an automatic lease renewal is a month-to-month rental agreement. North Carolina rental laws allow for this provision. In the lease agreement, it is important to note whether a lease will automatically renew or convert to a month-to-month lease

Deciding Whether or Not to Renew a Lease

Sometimes a property investor is busy looking for new real estate investments and isn't paying close attention to existing renters. Moving forward with lease renewals is easy based on a tenant's good payment history.

The last thing you want to do is approve a lease renewal and then learn the tenant is not taking care of the property. Worst, they've allowed people who are not on the lease to move in.

When you don't have time to perform a rental analysis, it's time to consider hiring a property management firm. They can perform tenant background checks, lease enforcement, and handle lease renewals. 

Is a Rent Increase Warranted?

When renewing a tenant's lease, you want to perform a rental valuation to determine if a rent increase is needed. Although North Carolina doesn't regulate rent increases or impose rent limits, landlords must abide by federal fair housing laws.

Lease Renewals Done Right

Don't fall behind on lease renewals. It can significantly impact your right to evict bad tenants. 

When property management becomes overwhelming, it's time to consult with the pros. 

If you are interested in learning more about lease enforcement and renewals or how a property manager can help you, contact us today!

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