In the thriving rental markets of Wilmington, Jacksonville, and Leland, a robust tenant screening process is your most important shield against future litigation and property damage. However, for landlords in New Hanover, Pender, Onslow, and Brunswick counties, the landscape of 2025 has brought increased scrutiny to how criminal background checks and credit reports are used.

In North Carolina, while you have a legal right to vet who occupies your coastal investment, the Federal Fair Housing Act and recent state-level shifts demand a process that is as transparent as it is consistent.

The End of the "Blanket Ban"

The most significant strategic shift for 2025 is the move away from "blanket policies." Many property owners in Surf City or Oak Island historically used a "No Felons" rule to simplify their screening. Today, such a policy is considered a major legal risk due to its potential for disparate impact.

Under fair housing best practices, housing providers should conduct an individualized assessment.

• Recency and Relevance: You cannot deny an applicant in Hampstead for a 10-year-old conviction that has no bearing on their fitness as a tenant. You must consider how long ago the offense occurred and whether it poses a direct threat to safety or property.
• The Lookback Period: While NC has no statutory limit on how far back a check can go, current best practices suggest a three-to-seven-year window for most non-violent offenses.
• Arrest vs. Conviction: In the Cape Fear region, an arrest record alone is not proof of criminal conduct. Denying a tenant based on an arrest that did not lead to a conviction can create fair housing risk, and it can also create Fair Credit Reporting Act (FCRA) compliance exposure depending on how the report is obtained and used.

Written Consent and the Adverse Action Notice

Whether you are renting a luxury condo in Wrightsville Beach or a duplex in Jacksonville, the administrative steps you take during screening are as important as the decision itself.

• Signed Authorization: Under the FCRA, you must obtain written consent before running any credit or criminal search. In 2025, digital signatures through secure portals like Landlord Studio or Buildium are the standard for landlords in New Hanover County.
• The Adverse Action Requirement: If you deny a tenant in Brunswick or Pender county based, even partially, on their background report, you are legally required to provide an Adverse Action Notice. This document must include the name and contact info of the screening agency used and inform the tenant of their right to dispute inaccurate information.

Strategic Advice for Local Landlords

Consistency is the only defense against a discrimination claim.

• Draft a "Tenant Selection Plan": Create a written document that outlines your minimum credit score, income-to-rent ratio (typically 3x in Wilmington), and criminal criteria. Apply these exact standards to every applicant without exception.
• Verify the Source: In our military-heavy areas like Onslow County, background checks can be complex. Ensure your screening service captures out-of-state records, as many tenants in Sneads Ferry may have moved recently from other bases.
• The "Conditional Offer" Strategy: Consider extending a conditional offer based on income and references first, then running the background check. This demonstrates that you are evaluating the applicant as a whole person, which is a strong defense if your final decision is ever challenged.

Your Next Step

Building a reliable and legally compliant tenant screening process is essential to the long-term health of your portfolio. At Aspyre Realty Group, we are experts in listening and communicating people's wants into homes that work for them. We act as your strategic partner and guide, providing the local market insights and professional resources you need to navigate the complexities of fair housing laws across New Hanover, Pender, Onslow, and Brunswick counties.