Let’s talk about your North Carolina rental application and how you can use it to make life as a landlord easier and find upstanding tenants.
There’s already a lot on your plate, so you don’t need to be chasing rent, dealing with avoidable damages, or escalating issues to legal disputes.
While property management software can streamline your business, the way you use a rental application can do the heavy lifting, too. Here’s how you can use a free application template and thorough screening practices to secure responsible and respectful tenants.
Information to Collect
Since your North Carolina rental application form discusses private information, there are laws regulating the information landlords can collect, the types of questions they can ask, and how they can analyze the applications.
In the next section of this guide, we’ll review these laws in detail. Before we get there, here’s a helpful checklist for what your application form should ask for:
- Names of all applicant(s) and co-signer(s)
- Social Security number
- Phone number and email address
- Date of birth
- Employment details
- Income
- Past and previous addresses
- References
- Animals, vehicles, and smoking status
- Emergency contacts
Quick Guide to Screening a Tenant
We’ve mapped out an easy-to-follow process covering the key elements of responsible tenant screening.
1. Pre-Screen
Once renters find your online listing, your pre-screener can ask them for:
- Contact information
- Employment status
- Income details
- Self-reported credit score
- Desired move-in date
- Number of occupants (including pets and service animals)
- Smoking status
The pre-screener’s sample of information tells you if a renter meets your listing’s qualifications. It’s not a substitute for your complete North Carolina rental application, but it can help you quickly sort through leads.
2. Conduct Showings
Invite renters to see the home in person by showing them the rental. Most landlords schedule one-on-one tours, walking renters through the property, but some broaden their reach with an open house.
3. Distribute and Collect Applications
If a renter expresses interest in your listing and passes the pre-screener, send them your online rental application. Once they finish filling it out, you’ll begin the application review process.
What are the first tasks on your list? Check that they’ve signed the consent and acknowledgment section and paid the application fee.
North Carolina Application Laws
We’ve reviewed the North Carolina Fair Housing Act, the North Carolina Landlord Tenant Act, and the state’s landlord-tenant rights in detail. These are the highlights landlords should keep in mind:
Criminal & eviction history: North Carolina law doesn’t prevent landlords from considering a renter’s criminal background or eviction records. However, you must apply a consistent screening process for all applicants.
Source of income: Some cities (like Chapel Hill and Charlotte) have local regulations that require consideration of Section 8 vouchers. However, there aren’t any statewide laws prohibiting landlords from denying an applicant due to their source of income.
As a best practice, check your city’s laws or speak with a legal professional.
Portable tenant screening reports: There are no state laws regulating portable tenant screening reports. Landlords can choose to accept them, but they’re not required to.
Pets, ESAs, and Service Animals
You don’t want to overlook important household members: pets, service animals, and emotional support animals (ESAs). Here’s how to use your North Carolina rental application to get the information you need and comply with federal laws.
Ask about animals: Have applicants submit the names, breeds, sizes, and service status of their pets, service animals, and ESAs.
Remember the Fair Housing Act: The FHA protects renters who have service animals and ESAs. Landlords can’t:
- Discriminate against applicants because they have a service animal or ESA
- Reject applications based on their service animal’s or ESA’s weight, size, or breed
- Charge a pet fee, pet rent, or pet deposit for service animals and ESAs (Fair Housing Act)
Property damages: If a tenant’s pet, service animal, or ESA damages your property, you can hold the tenant responsible.
Federal Application Laws
These are four laws every North Carolina landlord needs to know:
- Prohibits unequal renting terms and discriminatory advertising
- Prohibits discrimination against renters based on race, color, national origin, religion, sex, familial status, and disability
Equal Credit Opportunity Act (ECOA)
- Regulates how landlords assess rental applications
- Outlines reporting guidelines for applicants
- Protects renters who have received public assistance
Americans with Disabilities Act (ADA)
- Requires landlords to accommodate renters with disabilities
- Prohibits discrimination solely based on a renter’s condition
Fair Credit Reporting Act (FCRA)
- Requires landlords to obtain an applicant’s written consent before running a credit check
- If landlords deny applicants due to credit history, they must send them an adverse action notice
4. Use a Third-Party Screening Service
Make tenant screening efficient and straightforward with TurboTenant’s online tool for conducting credit, eviction, and tenant background checks.
5. Check Application References
If any questions come up during your review process, the renter’s references may be able to answer them. Here’s a sample of questions you can ask:
- Would you rent to them again?
- Did they break the lease?
- Did they miss rent payments or accrue overdue balances?
6. Approve or Deny Applications
Use a first-come, first-served process and accept multiple applications. Your decisions should factor in:
- Rental history: Bring a co-signer on board if the renter has less than 1 year of rental history.
- Rent-to-income ratio: Use a rent-to-income ratio calculator to make sure the applicant can afford the rent.
- Credit score: Most landlords set a minimum credit score requirement of 600–670.
- Fact-check: Verify applications, including all documents.
Denial Process
Always maintain a consistent denial process for all renters. In North Carolina, you can legally reject applicants based on:
- Income
- Rental history
- Credit
- Criminal background
- False information
Denial notice: North Carolina law doesn’t require you to send tenant rejection letters.
Credit/background denials: Did you deny a renter based on their credit or criminal background check? If so, the FCRA requires you to send them an adverse action notice, including:
- The reporting agency’s name and contact information
- The renter’s right to dispute reporting errors
Document storage: We recommend storing the applications you’ve denied (and the corresponding screening reports) for at least 3 years in case anyone files a discrimination claim.
Avoiding Fraud
Stop fraudsters in their tracks with these four tips for spotting scams:
- Use credit, background, and eviction checks
- Fact-check the renter’s employment and income
- Verify the renter’s identity
- Keep an eye out for signs of fake documents
