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This article provides general information and is not legal advice. For accuracy and specific guidance on landlord-tenant laws, consult an attorney before making any decisions or taking action.
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Tenant screening allows landlords to assess potential renters and gauge their suitability for their property. This process is designed to reduce the risk of property damage, missed rent payments, and unnecessary legal conflicts.
In North Carolina, there are specific laws in place that govern tenant screening, aiming to safeguard both property owners and applicants. For example, whilst North Carolina screening laws do now set a maximum limit on application fees, they do require these fees to reflect the actual costs associated with screening and cannot be inflated for profit.
This guide provides a comprehensive overview of North Carolina tenant screening laws 2025. It covers everything from legal application requirements to permissible background checks.
Successfully navigating tenant screening laws in North Carolina requires compliance with federal, state, and local regulations including:
The Federal Fair Housing Act prohibits discrimination during tenant screening based on race, color, religion, sex, national origin, disability, familial status, or citizenship status. This means landlords cannot deny housing or impose unequal terms based on these protected characteristics.
North Carolina’s Fair Housing Act builds on federal protections by explicitly prohibiting discrimination based on race, color, religion, sex, national origin, familial status, physical or mental disabilities, sexual orientation, and gender identity.
Under the Fair Credit Reporting Act (FCRA), if a landlord denies an application based on information from a credit report, they must issue an adverse action notice that outlines the reason for denial, provides the contact information of the credit bureau involved, and informs the applicant of their right to dispute the accuracy of the report.
There's no cap on how much a landlord can charge for tenant screening or application fees in North Carolina. However, these fees must be limited to covering expenses related to processing applications and conducting tenant screenings. Landlords are prohibited from inflating these charges to serve as a source of profit.
Typically, application fees in North Carolina range from $25 to $125, depending on the depth of the screening process and the specific tools employed, such as credit checks and background reports.
Application fees in North Carolina are considered nonrefundable and are not required to be held in escrow.
In North Carolina, landlords are not required to disclose their full tenant screening criteria. However, they are obligated to follow fair housing laws, which prohibit discrimination against individuals based on protected characteristics during the tenant selection process.
Although not legally required, it is best practice for landlords to have written rental policies that clearly outline their screening criteria. Consistently applying these policies to all applicants is essential for ensuring compliance with both federal and state regulations.
In North Carolina, landlords are required to follow both the Fair Credit Reporting Act (FCRA) and state laws when conducting background and credit checks on potential tenants.
Under the FCRA, landlords must obtain written consent from tenants before running any credit or background checks. The consent form must also inform tenants of their rights under the FCRA, including their right to dispute inaccurate information. Additionally, if a landlord studio credit check is used to deny a rental application, landlords must provide the tenant with a copy of the report.
State laws in North Carolina further require landlords to use a signed consent before performing a credit or background check. The easiest way to manage this is to use a purpose-built landlord software like Landlord Studio which will obtain consent from the tenant as part of the tenant screening process.
If a tenant requests, landlords are obligated to provide a copy of the credit report that was used in their decision-making process.
Below is an overview of the essential steps involved in the tenant screening process in North Carolina.
Start by asking pre-qualification questions to gauge whether applicants meet key criteria, such as income level, rental history, and their preferred move-in date.
Collect vital information from applicants, including their contact details, previous addresses, employment history, proof of income, and consent for background checks.
After gathering the necessary information, conduct comprehensive background checks. These should include credit history, criminal records, and rental history. Utilizing an online screening service can streamline access to these reports legally and efficiently.
When choosing an online tenant screening service, focus on the accuracy and thoroughness of the information provided about potential tenants. Consider aspects such as cost, data security, and the speed of report delivery.
A notable option is Landlord Studio, which provides a detailed tenant screening report for North Carolina that includes credit scores, rental history, background checks, and eviction records. Reports can be generated in as little as 30 minutes, with prices starting at $45.
Once you have reviewed the reports, assess the applications using consistent screening criteria to ensure compliance with North Carolina's tenant screening laws.
It is crucial for landlords to promptly inform applicants of their decisions. Providing clear reasons for any denials promotes transparency and helps maintain a positive relationship with potential tenants.
If the second method sounds a lot simpler, that’s because it is. Using Landlord Studio you can get a full eviction record check report as part of our tenant screening service. As well as the eviction check you’ll get a credit check and criminal background check. So you have all the information you need to make an informed decision.
Screening tenants with Landlord Studio is simple and completely free for landlords.
And that’s it!
Your tenants will then receive an email asking them to fill out their details. Once they’ve submitted and paid* you’ll receive the reports in the app and be notified by email. Simply log back in to review.
* Reports cost as little as $45 and can be paid for by the landlord or the tenant.
Understanding tenant screening laws in North Carolina is vital for landlords aiming to minimize legal risks and adhere to both federal and state regulations. Throughout the screening process, it’s important for landlords to steer clear of discriminatory practices and instead concentrate on evaluating tenants' reliability and their capacity to pay rent on time.
Thankfully, you can streamline the rental application and tenant screening process with Landlord Studio to ensure compliance with North Carolina's tenant screening laws in 2025 and secure the best possible tenants fast. Landlord Studio provides cost-effective screening solutions that emphasize legal adherence, offer comprehensive reporting, and ensure rapid turnaround times.
Take the first step towards improving your tenant screening experience in North Carolina. Create your free Landlord Studio account today.
