Understanding Eviction-Related Fees
for North Carolina Rental Housing Providers

By: Kevin Raus- North Carolina & South Carolina Licensed Senior Associate Attorney
  with Brownlee Whitlow & Praet

      As a housing provider in North Carolina, it’s crucial to understand the laws governing eviction-related fees. Recent legislative changes have clarified and expanded housing providers’ rights to recover certain costs associated with the eviction process. This guide will help you navigate these complex regulations and ensure you’re operating within the bounds of the law.

Key Legislation

The primary statute governing eviction-related fees in North Carolina is N.C. Gen. Stat. § 42-46. This law was amended by Senate Bill 224 (SB 224), which became effective on June 25, 2018. The bill clarified existing regulations and affirmed housing providers’ rights to charge certain fees related to eviction proceedings.

Permissible Fees

Under the current law, housing providers in North Carolina can charge the following eviction-related fees:

1. 1. Complaint-Filing Fee: Up to 5% of the monthly rent or $15, whichever is greater.
   2. Court Appearance Fee: Up to 10% of the monthly rent if the housing provider prevails in a summary ejectment action.
   3. Second Trial Fee: Up to 12% of the monthly rent, if the housing provider prevails in a new trial following an appeal of a magistrate’s judgment.
   4. Attorney’s Fees: Discussed below.
   5. Court Costs: Actual filing fees and service fees incurred.

       

Timing and Conditions for Charging Fees

The fees discussed here can only be charged under specific circumstances:

1. 1. Complaint-Filing Fee: This can be charged only if the resident was in default of the lease contract, the housing provider filed and served a Complaint for Summary Ejectment, and the resident cured (fixed) the default before judgment, resulting in the housing provider dismissing the Complaint.
   2. Court Appearance Fee: This can be charged only after the housing Provider successfully prosecutes a Complaint for Summary Ejectment (eviction) in small claims court, and neither party appeals the judgment of the Magistrate.
   3. Second Trial Fee: This can be charged only after the housing provider prevails in a new trial following an appeal of a magistrate’s judgment.
      
      

Important Considerations

1. 1. Written Lease Requirement: The ability to charge the above-referenced fees is contingent on having a written lease agreement that includes a provision allowing such fees.
   2. Actual Costs: Housing providers can only charge for fees they have actually incurred.
   3. Court Costs: As of January 1, 2025, the standard filing fee for eviction cases in North Carolina is $96, with an additional $30/person for serving the Summons and Complaint. A chart outlining these fees can be found here.
      
      
      

Recent Legal Changes – Attorney’s Fees

North Carolina General Statute § 42-46, recently amended by Session Law 2024-47 Section 8, allows landlords to recover attorney’s fees in certain eviction cases. If the housing provider is successful in their summary ejectment case and has a written lease that includes an attorney’s fees clause, the housing provider can recover up to 15% of the amount owed (for nonpayment cases) or 15% of the monthly rent (for other lease violations). If the tenant appeals the eviction to district court and the court finds the appeal was “frivolous”—meaning it had no factual basis or was filed solely to delay the process— the housing provider may be entitled to recover all reasonable attorney’s fees paid in connection with the appeal.

Best Practices for Housing Providers

1. 1. Maintain Clear Documentation: Keep detailed records of all costs incurred during the eviction process.
   2. Update Lease Agreements: Ensure your lease agreements include provisions for charging attorney’s fees and other eviction-related costs.
   3. Communicate Clearly: Inform residents of potential fees in advance and provide itemized statements when charging fees.
      
      

Conclusion

      The recent legislative changes in North Carolina have provided more clarity on housing provider’s rights to recover eviction-related fees. While this offers some financial protection for housing providers, it’s crucial to follow the law precisely to avoid potential legal challenges. Remember that these fees are meant to recover actual costs incurred, not to generate additional income.

      By understanding and adhering to these regulations, you can protect your interests while maintaining fair practices in your rental business. Always prioritize clear communication with your residents and consider eviction as a last resort. When eviction becomes necessary, follow the proper legal procedures and document all associated costs carefully.

     
*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.