Habitability Complaints: How Rental Housing Providers Should Respond to Repair or Maintenance Requests to Avoid Legal Trouble in North Carolina
By: Daria Harrington
Habitability Complaints: How Rental Housing Providers Should Respond to Repair or Maintenance Requests to Avoid Legal Trouble in North Carolina
By: Daria Harrington

Habitability Complaints:
How Rental Housing Providers Should Respond to Repair or Maintenance Requests to Avoid Legal Trouble in North Carolina

By: Daria Harrington- North Carolina Licensed Attorney with Brownlee Whitlow & Praet, PLLC

 

      For housing providers in North Carolina, resident repair requests are more than just maintenance checklists—they are potential legal landmines. Ignoring that leaky pipe or faulty heater might seem like a small oversight today, but tomorrow it could be the basis of a lawsuit or a rent abatement claim. If you’re a housing provider, here is what you need to know about your duties under North Carolina’s residential rental laws.

The Legal Duty to Provide a Habitable Home:

North Carolina’s Residential Rental Agreements Act (N.C. Gen. Stat. § 42-38 through § 42-44) outlines the basic legal responsibilities of housing providers. Chief among them? The obligation to maintain the premises in a fit and habitable condition.

Under N.C. Gen. Stat. § 42-42(a), housing providers must:

      • Comply with applicable building and housing codes;
      • Make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition;
      • Keep common areas in safe condition;
      • Maintain in good and safe working order all electrical, plumbing, sanitary, heating, ventilating, and air conditioning systems.

The statute doesn’t just recommend these duties—it mandates them. North Carolina courts take this responsibility seriously.

A Word to the Wise (Housing Providers): Courts Notice Neglect

      In Miller v. C.W. Myers Trading Post, Inc., 85 N.C. App. 362 (1987), the Court of Appeals underscored the importance of a housing providers compliance with the habitability statute N.C. Gen. Stat. § 42-42(a). The resident complained about persistent plumbing issues and the presence of raw sewage. The housing provider’s failure to remedy the situation constituted a breach of the implied warranty of habitability, entitling the resident to damages.

      Another cautionary tale is Cotton v. Stanley, 86 N.C. App. 534 (1987), where a housing provider was found liable for injuries sustained by a resident due to a defective staircase. The court held that the housing provider’s duty to maintain common areas in a safe condition was non-negotiable—even if the resident had warned them several times (spoiler: he had).

      In a more recent decision, the Court in Terry v. Pub. Serv. Co. of N.C., Inc., 385 N.C. 797, 898 S.E.2d 648 (2024), held that the housing provider’s duty to maintain the premises in a fit and habitable condition under the Residential Rental Agreements Act (RRAA) and N.C.G.S. § 42-42, does not arise until the housing provider receives notice from the resident or acquires actual knowledge of the need for repair. This ruling underscores the fact that housing providers are not tasked with being aware of every issue in the apartment community and puts some onus on the resident to provide notice (in most instances in writing) to the housing provider of any defects in the condition of the property.

Don’t Play the Waiting Game

Timely response is key. There’s no specific statutory deadline in North Carolina for responding to repair requests, but “reasonable time” is the golden standard. What’s reasonable? That depends on the severity of the issue.

      • A broken HVAC unit during a January freeze? Treat it like a five-alarm fire.
      • A squeaky cabinet door? You might have a little leeway, but don’t ghost your resident.

Pro tip: Always document when requests are made and how you respond. If you fix the problem within a reasonable time and keep good records, you’ll have a strong defense if a dispute arises.

Resident Remedies (a.k.a. Why You Shouldn’t Ignore Requests)

Residents in North Carolina have legal remedies if housing providers fail to maintain the habitability of the premises:

      1. Rent Abatement – Residents may be entitled to a partial, or full, refund of rent if the unit isn’t fit or in a habitable condition. However, North Carolina courts have held that rent abatement is only a remedy in cases where the resident has actually paid rent while the premises was uninhabitable. Creekside Apartments v. Poteat, 116 N.C. App. 26, 446 S.E.2d 826 (1994).
      2. Constructive Eviction – If the condition of the premises is so bad that the resident is effectively forced to move out, courts may consider it a constructive eviction. A resident could be awarded damages if the courts find that a constructive eviction occurred.
                a. The elements for constructive eviction are:

     i. Uninhabitable Conditions: The resident must demonstrate that the condition of the property made it unfit for occupancy. This could involve issues like severe water damage, lack of essential utilities (heat, water, electricity), or serious health and safety hazards. 
     ii. Landlord’s Responsibility: The resident must prove the uninhabitable conditions were caused by the housing provider’s actions or their failure to maintain the property in a habitable state. This could include neglecting necessary repairs or creating conditions that make the property unlivable. 
      iii. Notice to Housing Provider: The resident must have notified the housing provider of the issues and given them a reasonable opportunity to address the problems. This notice should ideally be in writing to provide a record of the resident’s communication with the housing provider. 
      iv. Vacating the Premises: The resident must have abandoned the property within a reasonable time after the housing provider’s failure to fix the issues. What constitutes a “reasonable time” depends on the severity of the conditions and the nature of the problem.

3. Repair and Deduct? Not Quite – North Carolina law does not recognize a resident’s right to withhold rent or repair and deduct unilaterally. If they do so, they may find themselves facing eviction.

Best Practices to Stay Out of the Courtroom

      • Establish a Maintenance Request System: Whether it’s a dedicated email, app, or portal, make sure residents know how to reach you in case they need repairs made in the premises.
      • Respond Promptly and Professionally: It is important to note that as a housing provider, you are providing a service to someone. The housing industry is a customer service industry.
      • Document Everything: From the initial request to the final repair, keep a paper (or digital) trail, as well as photos when necessary.
      • Perform Routine Inspections: An ounce of prevention is worth a pound of litigation.
      • Know When to Call a Pro: YouTube DIY is great for hobbyists. Not so much for housing providers fixing electrical wiring. If you need to outsource to third-party vendors to assist with repairs, have a list of vendors prepared to reference when needed.

A Note on Retaliatory Eviction

       Thinking about serving a notice to vacate because your resident complained too much about repairs? Consider this approach carefully. Under N.C. Gen. Stat. § 42-37.1, it is unlawful to retaliate against a resident for exercising their legal rights, including complaining to a government agency or requesting repairs. If the repair requests or complaints were frivolous and made in bad faith by the resident that is another story but understand the hurdles you have to overcome in attempting to non-renew a resident related to these issues.

       Courts assume retaliation if a housing provider takes adverse action within 12 months of a protected resident’s activity. That’s right: if your resident called the health department and you served a non-renewal notice three months later, you need to be sure to have a good, non-retaliatory reason.

Final Thoughts: Be Proactive, Not Reactive

      Residents are entitled to habitable living conditions, including functioning plumbing, adequate heat in the winter, air conditioning in the summer when provided, and a sound, watertight roof. Under North Carolina law, housing providers are required to maintain rental properties in a fit and habitable condition.

      Promptly addressing repair requests not only ensures compliance with statutory obligations but also fosters resident satisfaction and retention. In other words, addressing the furnace today can help prevent addressing your reputation and potential legal consequences in court tomorrow.


     
*The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information in this article is for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information. Viewers of this material should contact their attorney to obtain advice with respect to any particular legal matter. No viewer of this material should act or refrain from acting on the basis of information in this presentation without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.  Use of, and access to, this article does not create an attorney-client relationship between the reader and Brownlee Whitlow & Praet, PLLC or any contributing law firms. All liability with respect to actions taken or not taken based on the contents of this article are hereby expressly disclaimed.