A lease or a rental agreement is a legally binding document. This agreement binds both the landlord and the tenant for a specific period of time. Within this time, both parties must abide by the terms of the agreement.
Breaking a lease means ending it before its termination date. While that may be unavoidable in some circumstances, breaking a lease can have multiple consequences for a tenant.
For one, as the landlord, you can sue them for all the rent due under the lease. You can also deduct part or all of their security deposit. That said, in North Carolina, not all reasons for breaking a lease are created equally. Some can attract penalties while others cannot.
The following is everything you need to know about a tenant breaking a lease in North Carolina.
Are there legally justified reasons to break a lease in North Carolina?
Broadly speaking, tenants are liable for all rent due under the lease regardless of whether they live there or not. There are some exceptions to this blanket rule, though. They are as follows:
1. The lease contains an early termination clause
Your tenant may be able to use an early termination clause in your lease to end their stay at your property. A good early termination clause provides as many details as possible.
When creating lease agreement in North Carolina , make sure to state the specific terms that a tenant must meet before using it. For example, the amount of penalty fee they must pay. Typically, this is equivalent to two months worth of rent.
Besides a penalty fee, you may also want tenants to provide you proper notice. A one-month notice period is standard.
2. The tenant is a victim of domestic violence
Under state law, domestic violence victims have special rental provisions. Generally speaking, they may be able to terminate their lease as long as they meet two basic requirements. They must show proof of their domestic violence status and two, they provide proper notice.
3. You harass the tenant
Landlord harassment may be enough justification for a tenant to break their lease.
The following actions may be deemed to be landlord harassment:
- Refusing rent payment from your tenant
- Illegally evicting your tenant
- Sexually harassing your tenant
- Imposing illegal rent increases
- Creating unnecessary disturbance that causes emotional distress on your tenant
- Failing to perform timely repairs and maintenance
- Withholding amenities the tenant is entitled to
4. You violate the tenant’s right to privacy
Some states require landlords to provide proper notice to their tenants before entry while others don’t. Notice of entry laws are absent from North Carolina’s rental law, and as such, landlords aren’t required to provide a notice of entry.
Nonetheless, most landlords do give their tenants a 24 hours notice before entry.
5. The unit does not meet habitability standards
Every state, include North Carolina, has specific health and safety codes that all landlords must abide by. If you fail to meet those standards, your tenant may have...
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