What responsibilities do North Carolina landlords have regarding bedbugs?

Unfortunately, bed bugs are becoming a common issue, not just here in North Carolina, but across the United States and around the world. Landlords in the Charlotte area should take necessary precautions to limit their risk to bed bug related lawsuits. 

Treatment for bed bugs generally requires cooperation from the tenant (removing items from around the walls, washing all bedding, clothing, etc. in very hot, soapy, water...) and multiple treatments from a qualified extermination company. Costs can regularly exceed $1,000 for an occupied residence (costs on a vacant home by comparison can be a few hundred dollars).

"The home didn't have bed bugs when it was initially rented, so the tenant must have brought them into the house and they need to deal with it." 

This is the initial reaction from many landlords and, unfortunately, could end up costing the landlord thousands of dollars. Each municipality has its own laws, but in North Carolina a property owner is required to provide leased premises in a fit and habitable condition. 

If a landlord is notified of a defective condition, such as bed bugs, and the landlord fails to take immediate corrective action, a landlord is faced with more than the possibility that their tenants may receive a rent abatement or credit. A tenant may also: (a) declare a constructive eviction and vacate the premises; (b) file an action to recover the rents paid; (c) seek treble damages under our States unfair and deceptive trade practices statutes; and (d) seek to impose the cost of the resident's attorney's fees from the property owner.

Property owners who fail to take the necessary steps to eradicate bed bugs from a multi-family home may experience a situation in which the bed bugs existing within one unit may migrate throughout the entire building, thereby allowing multiple tenant claims for breach of warranty of habitability, exposing the owner to rent abatement damages and an inability to effectively lease a building with a bed bug stigma. 

So what should a landlord do? 

Once bed bugs are discovered, the landlord needs to take immediate action. Landlords should have a pre-determined plan coordinated with a qualified extermination company. The plan should provide a landlord with a step by step method to treat for bed bugs. Once a landlord is notified of the existence of bed bugs within a unit, a landlord should maintain a detailed chronology of the facts concerning the bed bug complaint and note each step that was undertaken by the landlord to eradicate an infestation. These records would be vital to an attorney in the event a tenant brings a claim against a landlord for damages associated with a bed bug infestation.

Additionally, the lease should explicitly address bed bugs, how they will be treated and who is responsible for the costs. This is a key component of a landlord's risk management program.  Alarca Realty's lease contains a two page bed bug addendum that clearly explains the procedures that must be followed and the consequences of non-compliance if bed bugs are identified. 

Professional Property Management Significantly Increases ROI

A recent survey by All Property Management of 300 property managers form around the U.S. demonstrates just one way that hiring a well-run property management firm is a good investment decision for most income property owners.

The following information comes directly from that survey and All Property Management:

"According to the US Census Bureau, the national average rental vacancy rate hovers around 9%, while our survey reveals that the average vacancy rate for professionally managed companies is about half that, coming in at 4.5%.

To calculate what this reduction means for the average rental property owner's bottom line, we took a look at what it would mean for the owner of a property valued at $150,000, with a monthly rent of $1,250, assuming a 10% monthly property management fee. We found that, when you take into account both lost rent and turnover costs, each 1% drop in vacancy rate saves the property owner about $1,900 over the course of a five-year period. Thus, a reduction of 4.5% equals a savings of about $9,500 over five years. Meanwhile, at 10% per month, professional property management would cost only $7,500 over the same period, resulting in a $2,000 profit, which represents a 30% ROI.


All Property Management's survey also confirms that average turnover costs total about $2,000---double that when there is an eviction, or similarly challenging tenant situation, involved. Pair this with other advantages of hiring professional property management, which include time savings, the ability to command higher rents, and improved maintenance at lower costs---just to name a few---we think payoff from using a professional property manager is clear. It's the best investment for making a solid real estate investment."

Contact Alarca Realty and find out how our property management processes and systems provide world-class customer service while also delivering industry-leading investment returns to our clients.