Breaking a lease in NC can carry several consequences for a tenant. It may mean the tenant might:
But not all reasons for breaking a lease attract penalties for a tenant. There are certain circumstances that provide legal justification for a tenant to break a lease in North Carolina without pay. This can allow them to break free from their contractual lease obligations without them facing any financial ruin. The reasons are as follows.
According to landlord-tenant law, a tenant can legally break a lease in North Carolina in a handful of scenarios.
Having an early termination policy in a lease can help save both the property owners and their tenants from all the complicated process that comes with finding a new tenant. As such, consider having the clause in your lease from the get-go.
When writing the early termination clause in your lease, make sure to address the following things if tenant breaks the lease:
Ideally, work with a lawyer or an experienced property manager to draw up a solid early termination clause for the lease, to ensure you are legally justified. And once it’s drawn up, make sure to go through it with new tenants prior to lease signing.
North Carolina Tenants who are Servicemembers are protected by the Servicemembers Civil Relief Act (SCRA) when they wish to break their lease early and leave the rental unit for starting active duty in military. In North Carolina, Servicemembers are members who belong to any of the following military cadres.
The protection of the act begins on the date the tenant enters active military service and ends thirty to ninety days after they get discharged.
A lease in North Carolina must adhere to specific health and safety codes that provide basic standards for rentals. If a landlord can’t meet those standards, their tenant may be able to exercise any of the following rights.
In some other states, tenants may also be able to withhold rent or make the repairs themselves and deduct the cost from rent. This is, however, not the case for North Carolina law.
The following are examples of conditions that make a unit uninhabitable.
A tenant may also be able to break from their lease in North Carolina due to harassment. The following are common examples.
Whereas North Carolina doesn’t have a statute on landlord entry, it’s still paramount that landlords provide it in the lease agreements for legal justification to their tenants. Because, if a landlord doesn’t and makes repeated entries, their tenant could sue them for landlord harassment.
A victim of domestic violence has special rental provisions. And among these rental provisions is the right to terminate the lease early. According to NCGS § 42-45.1, tenants who are domestic violence victims only need to provide a 30-day written notice to terminate their lease.
Landlords are also entitled to verify claims of domestic violence as per NCGS § 42-42.2.
A North Carolina landlord has the duty to find a replacement tenant and sign a new rental lease. They must re-rent the unit left vacant by a tenant and return their security deposit — no matter the reason for leaving. (Isbey v. Crews, 284 S.E.2d 534 (N.C. Ct. App. 1981)).
If you're a landlord and own a rental property in North Carolina, it’s important to be familiar with the local laws. If you still have questions, feel free to get in touch with our team at KRS Property Management! We can help you navigate the law and manage your rental property. We also offer a FREE rental unit pricing analysis.
Disclaimer: This content isn’t a substitute for professional legal advice. Also, laws may change and this post may not be updated at the time you read it. For expert legal advice, please get in touch with us.
