New Rental Rules for North Carolina Landlords
North Carolina has always been considered a relatively landlord-friendly state, but the past two legislative sessions brought several important changes that landlords can’t afford to ignore. From updated renter’s insurance rules to a brand-new process for removing unauthorized occupants, the 2026 landscape requires a bit more awareness, documentation, and caution than before.
One of the most practical updates affects how landlords handle renters’ insurance. A 2025 insurance bill clarified that you can require residents to carry renters’ insurance, but you cannot force them to use a specific company or agent. This removes confusion that lingered for years around “preferred providers.”
If a resident doesn’t provide proof of insurance within 3 days of your request, you can buy a policy for them and charge the actual cost plus a small admin fee, protecting the property and resident without favoring any carrier. Update your lease if it still mentions an “approved company” or outdated insurance language.
Eviction Appeals and Attorney’s Fees
A 2024 law on recovering attorneys’ fees in eviction appeals raised more questions than it answered, so lawmakers fixed it in 2025. The new version states that landlords can recover attorney’s fees only if the landlord wins the case, and the resident appeals in bad faith.
This clarification is retroactive to September 2024 and affects both open and newly filed cases. Fees in appeals will now be the exception, not the norm, unless there’s clear evidence of bad-faith behavior.
A Faster Solution for Unauthorized Occupants
Perhaps the biggest operational change for landlords is North Carolina’s brand-new process for removing unauthorized occupants, people living in a property without a lease, rental agreement, or any legal right to be there.
Starting December 1, 2025, landlords can file a specialized complaint that triggers an accelerated timeline. Sheriffs must serve the papers within 24 hours, courts must schedule a hearing within 48 hours of service, and once an order is issued, the occupant has only four hours to leave before they can be charged with trespassing.
This process does not replace the traditional eviction procedure for actual residents. Instead, it gives landlords a tool to quickly remove individuals who truly have no legal right to the property.
Stronger Consequences for Property Damage
Another recent update increases criminal penalties for willful destruction of residential property. If someone intentionally damages a rental home and the cost exceeds $1,000, the offense can now be treated as a Class I felony rather than a simple misdemeanor.
This change gives landlords more leverage in extreme cases, such as when someone maliciously destroys cabinets, flooring, appliances, or fixtures on their way out. The law won’t fix the property for you, but it may help in pursuing compensation or prosecution when appropriate.
Statewide Preemption
North Carolina strengthened its stance on uniformity across its rental laws. Cities and counties still cannot implement rent control or require landlords to accept federal housing vouchers.
You can still participate voluntarily in subsidy programs, but no local government can penalize you for choosing not to. This law reinforces long-standing property rights and ensures that rental rules remain consistent across the state.
Revenue-Management Software
In late 2025, North Carolina’s Attorney General announced a settlement with a large landlord accused of using rent algorithms to coordinate prices with competitors. Although only one company was involved, exercise caution with automated pricing tools that depend on market data.
Landlords should review any revenue-management software they use and confirm that pricing decisions cannot be interpreted as coordinated or collusive. Transparency and independent decision-making are essential.
Even with these new changes, North Carolina’s core landlord obligations remain the same, especially around security deposits, habitability, notice requirements, and fair housing laws.
Security Deposits
North Carolina has very specific laws about how deposits are collected, stored, and returned. Deposits must be held in a trust account or secured by a bond, and tenants must be notified of the account location within 30 days. Return timelines are strict, 30 days for most cases, with a small extension only if you’ve communicated the need for more time.
Missing deadlines or mishandling funds can cost you the entire deposit and expose you to additional damages.
Habitability
Landlords are responsible for maintaining a “fit and habitable” home. That includes safe electrical systems, working plumbing, functioning heating, secure structures, properly installed smoke alarms, and compliance with all health and safety codes. Inspectors in larger cities like Charlotte take these complaints seriously, and violations can escalate quickly.
Staying ahead of repairs is not only good practice, but it’s also legal compliance.
Evictions
North Carolina requires specific notice periods depending on the type of tenancy, and the nonpayment timeline includes a 10-day demand for payment before filing. Evictions must be filed through the court system, and self-help actions like shutting off utilities or changing locks remain strictly illegal.
If you’re ever unsure about a notice or timeline, ask a professional; mistakes can delay the process by weeks.
Fair Housing
Fair housing laws continue to be vigorously enforced. While the federal Fair Housing Act sets the baseline, some North Carolina cities and counties add their own protected classes. Marketing language, screening criteria, and communication standards must be consistent and neutral.
If you work with a property management company, ensure your team understands both federal and local rules.
Compliance Made Simple
The safest way to approach 2026 is with a quick internal audit. Review your lease templates, insurance clauses, deposit procedures, maintenance workflows, renewal processes, and technology tools. Make sure nothing is outdated or inconsistent with recent law changes.
If you prefer not to tackle this alone, we can help.
Schedule a free consultation to review your leases, policies, and procedures, ensuring compliance with North Carolina’s 2026 landlord laws while keeping your rentals protected and profitable.
