In North Carolina, the amount a landlord can raise rent is generally limited by law. For residential properties, landlords can only increase rent once per year, and the increase cannot exceed 5%. This limit applies to all types of residential properties, including apartments, houses, and mobile homes. There are a few exceptions to this rule, such as when a landlord is making major renovations to the property or when the tenant’s lease agreement allows for a higher rent increase. In these cases, the landlord must provide the tenant with written notice of the rent increase at least 30 days in advance.
North Carolina Landlord-Tenant Law
Landlords in North Carolina have the right to raise rent, but the amount they can increase is limited by state law. Below are the rules governing rent increases in North Carolina:
Change in Allowable Maximum Annual Rent Increase
| Type of Rental Agreement | Rent Increase Limit | Notice Required |
| Written Lease: Month-to-Month | 5% or $25, whichever is greater | 10 days |
| Written Lease: Fixed-Term | No rent increase during lease term unless lease allows | N/A |
| Oral Lease: Month-to-Month | 5% or $25, whichever is greater | 30 days |
General Provisions
- The maximum rent increase allowed is calculated based on a 12-month period. So, if rent was raised by 5% in January, the landlord cannot raise it again until the following January.
- Landlords must provide written notice to tenants of any rent increase. The notice must be given at least 10 days before the rent increase takes effect for month-to-month leases and 30 days before the increase for oral leases.
- Rent increases cannot be applied retroactively. In other words, landlords cannot charge tenants more for rent for any period before the increase went into effect.
- Tenants who believe their landlord has violated the rent increase laws can file a complaint with the North Carolina Housing Finance Agency.
Annual Rent Increases
In North Carolina, landlords are allowed to raise rent once per year. The maximum amount that rent can be raised is determined by the “vacancy rate” in the landlord’s market area. The vacancy rate is the percentage of rental units that are unoccupied. If the vacancy rate is 3% or less, landlords can raise rent by up to 10%. If the vacancy rate is between 3% and 5%, landlords can raise rent by up to 8%. If the vacancy rate is greater than 5%, landlords can raise rent by up to 6%.
Landlords must provide tenants with written notice of any rent increase at least 30 days before the increase takes effect. The notice must include the amount of the increase, the date the increase will take effect, and the reason for the increase.
Maximum Rent Increases Based on Vacancy Rate
| Vacancy Rate | Maximum Rent Increase |
|---|---|
| 3% or less | 10% |
| Between 3% and 5% | 8% |
| Greater than 5% | 6% |
Landlords are not allowed to raise rent more than once per year, even if the vacancy rate changes. They are also not allowed to raise rent in retaliation for a tenant exercising their rights, such as complaining about a housing code violation or joining a tenant’s union.
Reasonable Limits
North Carolina law does not set a limit on how much a landlord can raise the rent. However, there are some reasonable limits that landlords must follow. For example, landlords cannot raise the rent more than once per year and they must give tenants at least 30 days’ notice of any rent increase. Additionally, landlords cannot raise the rent to an amount that is higher than the fair market value for the property.
Additional Factors Determining Reasonable Rent Increases
- Condition of the property
- Local rental market trends
- Landlord’s expenses
- Tenant’s income and financial situation
- Any improvements made to the property by the landlord
- The length of time the tenant has lived in the property
- Whether the tenant has a lease agreement
If a landlord raises the rent more than once per year or without giving proper notice, the tenant может file a complaint with the North Carolina Housing Authority. The Housing Authority may investigate the complaint and order the landlord to lower the rent.
Tenants should also be aware of any rent control ordinances that may be in effect in their city or county. Rent control ordinances typically limit the amount that a landlord can raise the rent each year. Tenants who live in a rent-controlled area should contact their local housing authority to learn more about the rent control ordinance.
Notice Requirements
In North Carolina, landlords must provide tenants with written notice of any rent increase. The notice must be delivered to the tenant at least 30 days before the rent increase goes into effect. The notice must include the following information:
- The amount of the rent increase.
- The date the rent increase will go into effect.
- The reason for the rent increase.
- Contact information for the landlord.
Hey, thanks a lot for taking the time to read all about rent increases in North Carolina. I know it’s not the most exciting topic, but it’s important stuff to know if you’re a renter or thinking of becoming one in this great state. If you have any more questions, feel free to drop me a line. I’m always happy to chat about landlord-tenant law. And be sure to come back and visit again soon for more informative and entertaining articles on all things real estate.