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North Carolina Laws to Know Before Investing In Rental Real Estate

Landlord-Tenant Law Book on a Desk with a GavelIf the majority of new Morrisville investors think of obtaining a single-family rental property, what frequently comes to mind are the operational aspects of the investment: finding tenants, managing property maintenance, and collecting rent. What you may not consider is that there is, in addition, an astonishingly broad range of laws and legal matters that relate to buying and leasing rental homes.

Although various federal laws will refer to rental properties nationwide, many of the laws that you will have to really know about are those on the books of your state, county, or even city. This is exactly why it is significant to do your research and obtain a clear comprehension of these laws before you pay for an investment property.

Real Estate Agency and Licensing Law

One of the really important people on your investing team is your real estate agent. The laws that govern the relationship between an agent and their clients differ from state to state. As an investor, it’s vital to comprehend what your real estate agent can and cannot legally do, from disclosures to acting in a dual agency capacity.

On top of that, appreciate that real estate agents may or may not be acquainted with property management laws. You should similarly have a clear understanding of the procedures required by North Carolina for having and keeping a real estate license and verify to make certain that your agent’s license is current and in good standing.

Transfers of Ownership

Another state-specific set of laws you should take into consideration is those regarding voluntary and involuntary ownership transfers. Voluntary transfers of ownership are those that happen when a rental property is bought. On the other hand, there are various differences among state laws with regards to who will handle the transfer (your real estate agent or an attorney, for example), whether title insurance is required, who pays which closing costs, and who owns the property on the day of closing.

But on the flip side, you should likewise learn your state laws about involuntary ownership transfers. These transfers mostly ensue when the heirs of a deceased property owner inherit the property. Comprehending these laws can help you get ready and make the whole process so much easier whether you inherit property or leave your property to someone else.

Limitations on Use

In a lot of states, local regulations will control and govern how a property owner may actually use their property. Zoning ordinances, deed restrictions, historic preservation programs, and environmental review laws can all limit how a property owner may put into service their land or structures.

As an investor, it’s really important to grasp well any local ordinances that may intervene or interfere with your chance to renovate or lease the property you desire to buy. You should similarly check out if any occupancy laws affected your designs to utilize the property as a rental.

Fair Housing and Others

There are federal, state, and even many local laws intended to protect tenants’ rights and prevent discrimination. So while knowing well your federal tenants’ rights laws is vital, you also need to apprehend whether your state has supplemented those laws with stricter versions of their own. You should, in addition, check cautiously for any rent control policies that may apply, both current and those likely to be enacted soon.

Ascertaining your local Landlord/Tenant laws and habitability standards will help make certain you manage your investment property the right way. Tenants’ rights laws can cover an incredible variety of things, from security requirements to frequency and notification about rent increases.


Getting to know all of the crucial laws in North Carolina can be a lot of work, consequently, it is logical for lots of rental property investors to hire Morrisville property management experts instead. At Real Property Management Excellence, we understand all the ins and outs of state and federal laws and can see to it that your investment properties are leased and managed in accordance with those laws. Call today at 919-827-1107.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

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