A North Carolina rental application is a form that prospective renters use to apply for a rental property. The application helps potential tenants present their personal and financial information in an organized way for the landlord's approval and typically asks for an applicant’s personal information, rental history, financial statements, and references from employers or former landlords. While there are general compliance requirements for any rental application, landlords must also consider specific North Carolina rental application laws.
In North Carolina, landlords are required to follow specific laws and regulations when screening tenants and reviewing rental applications. These laws are designed to protect both landlords and tenants, and ensure the rental process is fair and transparent. This is informational only; not legal advice.
- Fair Housing Act: Federal law prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. (42 U.S.C. §§ 3601-3619, 3631)
- North Carolina Fair Housing Act: State law makes it illegal to discriminate in housing due to race, color, religion, sex, national origin, physical or mental handicaps, or family status. (N.C. Gen. Stat. §§ 41A-1 to 41A-6)
- North Carolina Security Deposit Act: State law governs the collection and return of security deposits, including the maximum amount landlords can charge and timelines for returning deposits. (N.C. Gen. Stat §§ 42-50 to 42-55.1) A security deposit may not exceed two months' rent for terms greater than month to month.
- North Carolina Residential Rental Agreements Act: This law governs rental agreements and provides guidelines for various aspects of the landlord-tenant relationship including the application process, lease terms, and rent increases. (N.C. Gen. Stat. §§ 42-38 to 42-76)
North Carolina also has state-specific requirements regarding tenant screening and rental applications, including:
- Application fees: North Carolina has no limitations on how much an application fee can be and fees are non-refundable.
- Credit and background checks: Landlords may conduct credit and background checks on prospective tenants but must obtain written consent from the applicant and provide them with a copy of the report if requested.
- Income verification: Landlords can require proof of income from applicants to ensure they can afford rent but cannot discriminate against applicants based on their source of income.
- Tenant selection criteria: Landlords must apply their tenant selection criteria uniformly to all applicants and cannot discriminate based on protected characteristics under state and federal law.
- Denial of rental application: If a landlord denies a rental application based on information obtained during the screening process, they must provide the applicant with an adverse action notice explaining the reason for the denial and provide information for the applicant on how to dispute the decision.
Additionally, North Carolina’s “Ban the Box” law prohibits landlords from asking about an applicant’s criminal history on a rental application. Landlords can conduct a criminal background check later in the rental application process and use that information to inform their decision.