What is an assignment of rental income?

An assignment of rental income is a legal contract between a tenant and landlord that assigns the tenant’s rights to rental income to the landlord. This may occur when a tenant has signed an agreement to lease a property from a landlord, but can no longer pay the rent. In this situation, the tenant may assign the right to receive future rental payments to the landlord. This enables the landlord to collect the rental payments directly from the tenant’s current or former employers. In North Carolina, if a tenant has assigned the right to receive their rental income to their landlord, the tenant is obligated to provide written proof of the assignment to their landlord. This proof can be a signed contract or other documentation, depending on the specific circumstances. The landlord will also need to file this proof with the North Carolina Department of Revenue. If the tenant does not make their rental payments, the landlord can take legal action against the tenant in order to collect the rental income. This will likely include filing a lien against the tenant’s property. A lien is an encumbrance that allows the landlord to seize the tenant’s property until the rental payments are paid in full. Assigning the right to receive rental income to the landlord is a necessarily step for tenants who are unable to pay their rent. It allows the landlord to collect their money without having to resort to legal action and it also protects the tenant from being held liable for unpaid rent.

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What is an assignment of rental income?

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