Guide To Rental Applications in North Carolina [+Free Template]

Contents

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DISCLAIMER

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.

Overview

DEPOSIT

RENT CONTROL

NOTICE OF ENTRY LAWS

RE-KEYING LAWS

RENTAL AGREEMENT

LATE FEES & GRACE PERIODS

SMOKING LAWS

PET LAWS

For property owners, rental applications play a vital role in selecting the best tenant. The application form provides detailed information on applicants allowing landlords and property managers to effectively evaluate each prospect. 

Typically a rental application will include questions regarding a tenant’s personal, residential, and financial history.

However, landlords must understand the laws and regulations that govern the rental application process in North Carolina: covering aspects such as application fee limits, screening reports, and tenant rights.

Read more about North Carolina laws: North Carolina Landlord Tenant Laws

Download A Free Residential Application Form

Download Free Residential Rental Application Form Template(s) here 

What is a North Carolina Rental Application?

A North Carolina rental application is a document used by landlords and property managers to identify potential issues, such as a prospective tenant’s ability to pay rent or the likelihood of causing disturbances, and make informed tenant selection decisions.

In North Carolina, there are two primary types of rental applications. Choosing the appropriate one depends on factors such as the type of property being rented, local regulations, and the specific leasing agreement in use.

The most widely used form is the North Carolina Standard Rental Application, which can be tailored to meet the unique needs of the property owner or manager. 

Alternatively, landlords who rent to low-income tenants or those participating in Section 8 Housing should utilize a HUD rental application. This form is specifically designed to collect only the information permitted under subsidized housing guidelines.

Related Article: A Guide To Rental Applications For Landlords [+Free Template]

What To Include in a Rental Application

When creating a rental application form in North Carolina, it needs to include a few key elements such as:

  • Personal Information: Full name, contact details, and date of birth.
  • Rental History: Previous addresses, duration of stay, and landlord references.
  • Employment Information: Current employer, position, and length of employment.
  • Income Details: Monthly income and any additional sources of revenue.
  • Credit History: Consent to check credit scores and financial background.
  • Personal References: Names and contact information for personal or professional references.
  • Background Check Authorization: Explicit permission for conducting background checks.

North Carolina Rental Application Laws And Requirements 

North Carolina has a variety of regulations governing its housing market, which are essential to understand when preparing rental applications in the state. This overview highlights key laws that property owners should consider when creating rental applications.

Maximum Rental Application Fee in North Carolina

There is no rental application fee limit in North Carolina. Moreover, these fees are non-refundable, regardless of the outcome of the application process.

However, any application fee charged should be reasonable and reflect the actual cost of the rental application - it cannot be inflated for profit.

Related Article: Rental Application Fee Laws By State

Security Deposit Limits in North Carolina

NC Gen Stat § 42-51, restricts the amount landlords can collect as a security deposit depending on the lease type. The security deposit may not exceed two weeks' rent if a tenancy is week to week, one and one-half month's rent if a tenancy is month to month, and two months' rent for terms greater than month to month.

Additionally, landlords must notify tenants of the name and address of the financial institution holding the deposit within 30 days of the lease's commencement.

Fair Housing Compliance

Both federal and state fair housing laws prohibit discrimination in rental practices based on various characteristics, including race, color, religion, national origin, sex, disability, and familial status. 

The Federal Fair Housing Act specifically forbids discrimination against individuals based on these traits. Similarly, the North Carolina Fair Housing Act prohibits discriminatory practices in housing related to race, color, religion, sex, national origin, physical or mental disabilities, or family status (including families with children). 

These laws apply to all aspects of residential housing transactions.

Required Disclosures in Rental Applications

Landlords must include several legal disclosures on standard rental applications. These disclosures should cover:

  • The condition of the property
  • Any potential hazards that could affect tenants
  • Shared utility arrangements
  • Rent control regulations
  • Smoking policies
  • Security deposit details
  • Any associated fees

Credit and Background Check Laws in North Carolina

Under the Federal Credit Reporting Act (FCRA), landlords must obtain written consent from applicants before conducting credit history checks. This consent can be included as a statement within the rental application or as a separate disclaimer that becomes binding once signed by the applicant.

Verifying Employment and Income

Landlords typically require prospective tenants to provide proof of income as part of the rental application process in North Carolina. This requirement helps landlords assess whether an applicant can reliably afford to pay rent. 

Here’s an overview of how to verify tenant income during the rental application process:

  • Request Recent Pay Stubs: Ask for two to three recent pay stubs from the applicant. These should display the applicant’s name, their employer’s name, and year-to-date earnings. This documentation helps ensure consistency in income.
  • Employment Documentation: If an applicant is starting a new job and cannot provide pay stubs, request an offer letter or employment confirmation that includes the applicant’s salary, the company’s letterhead, and its address.
  • Review Bank Statements: Request two recent bank statements to gain insight into the applicant’s monthly deposits. This can be particularly useful for those who may not have pay stubs.
  • Tax Documents: Tax documents, such as W-2 forms for employees or 1099 forms for self-employed individuals, can provide a clear picture of an applicant's earned income for the year.
  • Invoices for Self-Employed Applicants: For self-employed individuals, ask for two to three recent invoices to gauge their earnings over the past couple of months.
  • Proof of Additional Income: Consider other sources of income, such as housing vouchers, child support, alimony, Social Security, Supplemental Security Income (SSI), or investment income. Request documentation that verifies these amounts.

It’s important to note that some states have laws against income discrimination, meaning landlords cannot deny a rental application based solely on how an applicant earns their income.

How To Collect Rental Applications in North Carolina

Landlords in North Carolina typically use two primary methods to collect rental applications: paper forms and online application platforms.

Paper Forms vs. Online Forms

Paper forms are a convenient option for applicants who may not have reliable internet access or who are less comfortable with technology. They provide a familiar format for many landlords, particularly those who prefer traditional approaches. However, they are also inefficient and can significantly slow down the process of securing a new tenant.

Landlords can easily download rental application templates from the internet, print them out, and distribute them to prospective tenants.

The other option is to use an online rental application platform. This can significantly speed up turnaround times, help you stay better organized, and improve the readability of submitted applications.

Collect Rental Applications and Screen Tenants with Landlord Studio

Landlord Studio is a property management platform designed by landlords for landlords and can help you streamline the entire tenant selection process. Create a free rental listing and syndicate it to top listing sites like Zillow, Zumper, Trulia, and Hotpads. Plus, prescreen leads, and collect rental applications. All in one place. 

You can even run comprehensive tenant screening reports on top applicants to ensure you have all the details you need to make an informed decision.  Landlord Studio will collect consent as part of the screening process and manage application fees. 

Additionally, lease management, document storage, rent collection, and financial management—all at an affordable price point.

Create your free Landlord Studio account today.

Final Words: North Carolina Rental Application Laws

While rental application forms offer significant benefits to landlords, compliance with both state and federal laws is crucial. When creating or using a rental application form, property owners must ensure it’s up to date with current regulations, as they can change with time.

If you’re looking for a stress-free solution to the North Carolina rental application process, try property management tools like Landlord Landlord Studio. This software helps streamline the collection of applications and fees while ensuring compliance with relevant laws.

Create your free Landlord Studio account today to streamline the entire tenant selection process from creating your listing to managing rental applications to moving your tenant in.

North Carolina Landlord Tenant Laws

North Carolina Rental Application Resources 

North Carolina Rental Application FAQs

What Is the Screening Process in North Carolina?

When renting out your property in North Carolina, utilizing a rental application is essential for assessing potential tenants before they move in. This process allows you to gather crucial background information about the applicant.

Through a rental application in North Carolina, you can determine:

  • Affordability: Can they meet the rent payments?
  • Rental History: Do they have a positive or negative rental track record?
  • Employment Status: Are they currently employed?
  • Credit History: What does their credit report indicate?
  • Criminal Background: Have they committed any crimes or felonies?

What Cannot Be Asked on Rental Applications in North Carolina?

When vetting tenants using a rental application, there are specific questions you must avoid asking. You cannot request the following information from applicants:

  • Race or ethnicity
  • Religion
  • Sexual orientation
  • Immigration or citizenship status
  • Arrest records
  • Marital or familial status
  • Whether they have children

Do I Need to Ask for a Social Security Number in a North Carolina Rental Application?

Typically, it is not necessary to request a Social Security number (SSN) on a North Carolina rental application. However, you may want to obtain this information if you plan to conduct certain background checks.

If you choose to ask for an SSN, ensure that you obtain written consent from the applicant. It’s crucial to handle any personal information, including an SSN, responsibly and transparently. Most screening companies can now securely request the SSN directly from applicants via email. 

Remember that informing the potential tenant and obtaining their permission is essential before conducting any background checks.

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