In 2022, there was an average of about 14 applicants for every rental property. This year, the competition is still fierce. To avoid rejecting good tenants and choosing unreliable ones, run a background check.

A tenant background check allows you to evaluate whether anything about prospective residents would disqualify them from moving into your property. However, the law regarding tenant screening in North Carolina differs from most other states. Here’s what you need to know.

Get a Signed Consent Form

North Carolina law requires landlords to have a signed consent form before running a background check on potential renters. Your consent form should describe exactly what you’re looking for. Stating what you plan to do with this information is also essential.

It helps to include that you will not discriminate against certain groups (like race or gender) on the consent form.

List Your Rental Standards

A prospective tenant’s criminal background check should be free of violent crimes. If you’re trying to reduce tenant turnover, it’s not a good idea to let someone live on your rental property who might threaten other tenants’ safety.

You should also consider a potential tenant's:

• Credit score
• Employment history
• Past rental history

Keep a document that lists the criteria you use to evaluate applicants. Having this information will help you defend yourself if a tenant accuses you of discrimination.

Know What’s Legal

North Carolina law doesn’t allow landlords to exclude prospective tenants just because they have a criminal record. Consider the nature and severity of the crime before rejecting an applicant. You must also look at how long ago the conviction occurred, as well as whether you can verify that the person has been rehabilitated.

Find a Reputable Tenant Screening Company

If you choose a screening company that’s unreliable or inexperienced, your results may not be accurate or complete.

Always review your potential screening company’s track record and reputation before you hire them. Ask for references from previous clients, as well as proof that their screening processes meet industry standards.

You should also read a list of the information that the company will collect about your applicants. If you don’t see the details you need on this list, continue looking for another screening company. It’s always better to get a comprehensive check than to have false information in your database.

Get an Extensive Tenant Background Check

It’s hard to uncover a potential renter’s criminal history and credit score on your own. Contact Carolina Property Management for a comprehensive tenant background check so you can ensure your renters are the best possible fit. We have access to all public records, and we know how to find information on criminal history, eviction history, credit scores, and more.

Our extensive screening process helps you avoid getting stuck with a bad tenant, saving you money and headaches in the long run.

For those interested in not just managing tenants but also maximizing property investments, click here to read out guide on how to earn passive income from real estate investing. This article provides valuable insights that can help you turn your real estate ventures into a steady income stream.