Typically, our answer is no and mainly because OBX long-term rental housing is at such a premium on the Outer Banks. Most standard, North Carolina Residential Rental Contracts contain a clause that permits the tenancy to go on a month to month basis after the initial term of the Lease. They also contain the clause that either the Landlord or the Tenant may provide a 30 or 60 day written notice after the initial term of the lease in order to end the tenancy.
OBX Housing prefers to keep all Residents on a 12-month lease. This is beneficial to the Landlord and also the Tenant because most Leases will automatically revert to month to month tenancy after the initial term of 12 months. Our procedure is that we perform an Inspection at the property a few months before the initial term of the lease expires. This is a thorough Inspection that provides the Landlord with complete details of our Inspection along with photos and future maintenance recommendations that we may notice during the Inspection.
We also provide the Owner with our recommendation of whether or not you should renew the tenancy along with rental rates that we suggest along with any other specific leasing terms. A new Residential Rental Contract will be negotiated on behalf of the Owner with the Tenant for a new term. The minimum term of a lease with OBX Housing is 12 months and can go up to 3 years without having to be recorded at the local Register of Deeds office.
Some of the factors we look at when recommending lease renewal are if the Tenant has paid the rent on time; if the Tenant is keeping the property clean; if the Tenant is keeping the yard and exterior of the home clean, trimmed back and free of trash and debris; if OBX Housing has not received any complaints from neighboring properties or homeowners associations. OBX Housing typically recommends rent increases from 3% to 5% from year to year to help offset the costs of taxes, insurance, etc.
If your Tenant were to decide they did not want to renew, a 30 or day written notice is required and the same goes for the Landlord if they decide they do not want to renew the lease. Finding new Tenants is not hard on the Outer Banks due to the long term rental shortage. We have very little vacancy and homes turnover quickly. We also have set up a Rent Alert system that prospective Renters can sign up for so that they get immediate notification when homes that meet their criteria become available.