Many North Carolina homeowners want to rent their home out as a vacation rental, especially during the summer months. Beach towns benefit from the influx of visitors, but not all property owners may want to open their home for rental. Before commencing with a vacation rental, there are a few things landlords need to know.

Chapter 42A of the North Carolina General Statutes outlines the Vacation Rental Act. All landlords should have a rental agreement in place with a required notice specified in the legislation. These agreements should outline the amount and process of handling fees, funds and procedures.

Landlords should use a trust account to process and hold payments especially for those requiring advance payment. Landlords can include cleaning and administrative fees as long as they are reasonable. The act outlines the process and conditions of eviction.

The NC Department of Justice provides additional information designed to protect tenants. The rental agreement should spell out all obligations of both the landlord and the tenant in addition to payment. Landlords do not have to cover a tenant’s inability to occupy if the tenant declined an offer of obtaining rental insurance. The rental insurance cannot exceed 8% of the cost to rent the property.

The tenant can expect the landlord to offer the property in a habitable condition. If unable, tenants receive a refund of their money. Landlords must keep the property safe for the vacationers while residing on the premises.

The rental agreement is a legally binding contract between tenant and landlord. The agreement protects both tenants and landlords by outlining expectations for both parties.