North Carolina property management laws: A 2025 guide

What is North Carolina property management?

North Carolina property management is the professional oversight of residential communities such as homeowners associations (HOAs), condominiums, lifestyle communities, and high-rises in compliance with state laws and each community’s governing documents.

Professional property management companies in North Carolina typically support clients by handling key responsibilities like budgeting, financial reporting, maintenance coordination, vendor oversight, rule enforcement, and resident communication.

This article is not intended to and does not constitute legal advice or create an attorney-client relationship. Board members should consult their association’s attorney to discuss the legal implications of their decisions or actions prior to proceeding.
 

North Carolina property manager requirements

Under North Carolina property management laws, most people who are paid to perform property management services are required to hold an active real estate broker license. Some exceptions exist for employees who work directly for the property owner or have limited responsibilities, but most professional property managers need a license.

Key licensing requirements include:

• Completing a 75-hour broker pre-licensing course approved by the North Carolina Real Estate Commission (NCREC)
   
• Submitting to a criminal background check
   
• Passing the licensing exam to receive a provisional broker license
   
• Completing three 30-hour post-licensing courses (90 hours total) within 18 months to remove the provisional broker status
   
• Maintaining continuing education (8 hours annually)

Although North Carolina does not require a separate community association manager (CAM) license, licensing may still be mandatory depending on the specific responsibilities of the manager. Additionally, many choose to pursue certifications through professional organizations such as the Community Associations Institute (CAI) to demonstrate expertise and credibility.
 

North Carolina property manager responsibilities

Day-to-day responsibilities can vary depending on the property or community, but property managers are generally required to:

• Execute a written property management agreement with each client, as required by the NCREC
   
• Operate within the authority of that agreement (e.g., collecting rent, handling maintenance, or enforcing lease terms)
   
• Handle security deposits or rent payments according to NCREC trust account rules, or, for tenant security deposits, comply with the bond alternative that may be permissible under the Tenant Security Deposit Act
   
• Maintain complete and accurate records of transactions for at least three years, including leases, management agreements, invoices, communication logs, and trust account documentation

Tenant rights and responsibilities

Tenants in North Carolina have the right to a habitable, safe, and sanitary home as outlined in North Carolina property management laws. Landlords and property managers are legally obligated to make timely repairs, comply with local housing codes, and maintain essential services such as heat and running water.

Common tenant rights include:

• The right to a habitable home: Landlords must maintain rental properties in safe, sanitary, and livable condition, including proper plumbing, heating, and structural integrity.
   
• The right to timely repairs: Tenants may request repairs for issues that impact health or safety, and landlords are expected to address them within a reasonable timeframe.
   
• The right to privacy: Landlords must give reasonable advance notice before entering a rental unit.
   
• The right to due process in eviction: Landlords must follow legal procedures, including proper notice and a court order, before removing a tenant. Self-help evictions are not permitted.
   
• The right to return of a security deposit: Landlords must return the deposit within 30 days, or send an interim accounting within 30 days and a final accounting within 60 days, as required by the Tenant Security Deposit Act.

In return, tenant responsibilities include:

• Paying rent on time as agreed in the lease
   
• Keeping the property clean and free of damage beyond normal wear and tear
   
• Reporting maintenance issues promptly to prevent escalation
   
• Complying with reasonable community rules (e.g., noise, pet policies)

Common North Carolina HOA laws

• North Carolina Planned Community Act: Applies to most homeowners associations created on or after January 1, 1999. It outlines the framework for establishing, governing, and operating HOAs, including provisions for assessments, board authority, and homeowner rights.
   
• North Carolina Nonprofit Corporation Act: Many HOAs are organized as nonprofit corporations and must comply with this law, which governs corporate structure, board duties, recordkeeping, and member voting rights.
   
• North Carolina Fair Housing Act: HOAs must comply with anti-discrimination laws under this act, which mirrors federal fair housing protections based on race, religion, sex, national origin, familial status, and disability.

Additional considerations under NC property management laws

Licensing and scope of authority

Property managers must act only within the boundaries set by their written agreement with the property owner. The NCREC requires this agreement to outline the manager's authority, responsibilities, compensation, and termination process. Acting outside the agreement's scope can result in disciplinary action.
 

Recordkeeping and reporting

Managers must keep copies of management agreements, leases, maintenance records, and payment logs. These should be accessible for inspection by the NCREC or the property owner. In addition, managers should routinely update owners on rent collection status, maintenance issues, and violations or disputes.
 

Human trafficking awareness training

Beginning July 1, 2025, property managers who list or manage vacation rentals (and other kinds of lodging establishments) must complete biannual human trafficking awareness training and implement a reporting procedure.
 

Local laws

Local zoning laws, building codes, and municipal ordinances directly affect how North Carolina property managers operate. Property managers must be aware of local restrictions on issues like occupancy, short-term rentals, signage, and parking. Some cities may require additional rental permits or inspections.

Zoning rules typically determine whether a property can be used as residential, commercial, or mixed-use, which influences leasing strategies. For instance, using a single-family property for multi-tenant arrangements could violate zoning laws and result in fines.

Municipalities may also set limits on short-term rental durations, parking regulations for multi-unit buildings, or registration or inspection programs for rental properties. Violations can lead to costly enforcement actions, so property managers are advised to stay current with both state-level and local legal requirements.
 

How FirstService Residential can help

For more than 20 years, FirstService Residential has helped board members and building owners in North Carolina simplify operations, support legal compliance, and improve the resident experience.

Boards and owners in North Carolina who partner with FirstService Residential can benefit from:
 

• A full suite of exclusive banking and insurance programs through our affiliate, FirstService Financial
   
• Instant access to critical documents and communication with their management team through our proprietary platform, FirstService Residential Connect™
   
• Legal and regulatory guidance through our network of experienced North Carolina-based partners
   
• Our 24/7 Customer Care team for round-the-clock multilingual resident support

Need help navigating North Carolina property management laws or streamlining compliance with new regulations? Contact FirstService Residential today to learn more.