House Bill 879 Explained: What North Carolina's Landlords, Property Managers & Investors Need To Know

House Bill 879 Explained

House Bill 879, or the Air Conditioning for Rental Properties bill, is a proposed legislation that could totally reshape a landlord’s responsibilities for residential rentals across the state, if passed. While the bill is still in legislative limbo, real estate professionals should take this time to understand its scope, implications, and prepare for the effects it will bring if it does get passed.

In this entry of Eviction Essentials: Your Guide to Landlord-Tenant Law and Courtroom Drama in North Carolina, we aim to break down what HB 879 would mandate, who it affects, and what landlords and property managers should do to prepare if it becomes law.

House Bill 879

The bill aims to revise G.S. 42-42, the North Carolina statute governing landlord obligations to provide a “fit premises”. If passed, HB 879 would legally require landlords to install and maintain a functional air conditioning system in residential rentals.

Under the bill:

• Landlords must provide operable A/C that is capable of maintaining reasonable indoor temperatures during warmer weather. 

• The A/C system must be in good working order at the start of each tenancy. 

• The requirement applies to residential rental agreements and renewals entered into on or after the law’s effective date (If it gets passed). 

Generally speaking, the bill would require an addition to a property that many landlords have historically treated as optional or lease-specific. HB 879 will pin air conditioning to the baseline habitability standards for rental housing.

Who Will Be Affected by HB 879?

1. Residential Landlords

HB 879 will affect North Carolina landlords of residential rental properties, including but not limited too:

• Single and multi-family units

• Apartments

• Condominiums

• Accessory dwelling units

Any property that is under Chapter 42 of the North Carolina General Statutes that is leased for residential occupancy are potentially facing new stipulations. 

2. Property Managers and Management Companies

A property manager overseeing rental operations for property owners need to ensure compliance with the new A/C standards. If passed, HB 879 will affect:

• Maintenance schedules

• Move-in inspections

• Lease templates and disclosures

• Budgeting for AC installation or upgrades

3. Real Estate Investors & Institutional Owners

Investors who operate portfolios with diverse geographic spread must:

• Assess compliance risks

• Adapt investment underwriting

• Analyze expense forecasts tied to HVAC upkeep

• For investors with properties in warmer regions, compliance could mean significant capital expenditures if AC units are absent or outdated.

Why HB 879 Is Significant for Landlords

This bill represents a potential shift in North Carolina’s habitability standards. North Carolina’s housing codes have traditionally leaned more in favor of landlords, offering fewer protections for tenants. However, this bill will put into motion legislative action that greatly enhances tenant comfort and habitability beyond what was once just, heating and other utilities.

Key Impacts:

• Standardizes AC obligation, not just “repair if provided” but ensures functional cooling at tenancy start. 

• Changes compliance baseline for property owners and managers.

• May trigger increased maintenance costs, particularly for older buildings without AC.

• Could influence lease negotiations, especially if landlords seek to recoup AC costs through rent or utility provisions.

How to Evaluate Your Rental Portfolio

Landlords and property managers should begin by auditing existing inventory:

1. Identify Properties Without AC

Create a list of units without air conditioning or with units that are:

• Older than 10-15 years

• Frequently needing repairs

• Inefficient in cooling performance

2. Inspect HVAC Systems

For properties with A/C:

• Check that they’re in good working order

• Schedule inspections before each new tenancy

• Document functionality for compliance records

3. Examine Lease Language

Review your rental agreements to ensure they:

• Reflect any new requirements

• Clarify maintenance responsibilities

• Address tenant reporting procedures for AC issues

4. Budget for Upgrades

If AC systems are absent:

• Plan phased installation schedules

• Factor electrical upgrades, permits, and service contracts

• Adjust rent roll projections if necessary

How you should prepare for HB 879 North Carolina landlords and property managers should get ready for the effects that HB 879 could bring, regardless of whether or not it is passed into law. Proactive preparation will save you time and money, and shield you from possible legal headaches.

1. Conduct a Property Audit Document which units meet current A/C standards and which do not. This baseline assessment will inform:

• Capital expense planning

• Maintenance scheduling

• Tenant communication strategies

2. Update Maintenance Protocols

Implement mandatory A/C checks as part of the turnover processes and maintain documented records of all maintenance communications.

3. Revise Leases & Notices

Ensure lease agreements require tenants to:

• Promptly report AC malfunctions in writing

• Follow specified reporting procedures

• Clear contract language can support compliance and limit disputes.

4. Engage Qualified Contractors

Line up HVAC service professionals who can:

• Conduct efficiency assessments

• Perform timely repairs

• Install new systems if needed

Having vetted partners ahead of time accelerates compliance once the law takes effect.

FAQs:

Will your existing leases be affected by HB 879? No, House Bill 879, in its current draft, will only apply to lease agreements signed on, and after the date it is passed. It would not automatically apply to existing leases.

Does this mean air conditioning must be free?

Landlords must provide and maintain operable systems, how utility costs are allocated depends on lease terms. Review leases to ensure clarity on who pays for electricity.

What counts as “operable”?

An operable system must cool the premises to a reasonable indoor temperature during warm weather, effectively similar to requirements for other major systems like heating. 

Why Landlords Should Act Now

Even if HB 879 is amended before it is passed or rejected altogether, it shows that North Carolina is now leaning toward better tenant comfort and habitability. Landlords who proactively align their properties with this standard will:

• Enhance tenant satisfaction

• Reduce legal risks

• Improve lease retention

• Increase property value

If you’re a landlord or property manager that needs help with an eviction, you can call us at +1 980-263-9926, send an email to george@gibbsglaw.com, message us on Facebook, or reach out through our Website.