Committee reviews landlord bill for background checks and tenant fee refunds

February 17, 2025 | 2025 Legislature NC, North Carolina


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Committee reviews landlord bill for background checks and tenant fee refunds
During a recent meeting of the North Carolina House Industry, Business and Labor Committee, lawmakers discussed a proposed bill aimed at enhancing transparency in the rental process by requiring landlords to provide proof of background checks for prospective tenants. This legislation has sparked a lively debate among committee members, highlighting the balance between tenant rights and landlord responsibilities.

The bill stipulates that if a landlord requires a criminal background check as part of the leasing process, they must furnish proof of that check within a specified timeframe. If they fail to do so, all fees paid by the prospective tenant to secure the lease would be refunded. Representative Grimrick expressed concerns about the bill's strict timeline, suggesting that a seven-day window for landlords to provide this proof might be too short, especially considering potential delays in processing or communication.

Several representatives echoed Grimrick's sentiments, proposing an extension of the timeframe to 14 or even 30 days. They emphasized the need for flexibility, noting that landlords may not always have immediate access to the necessary information, particularly if they are relying on third-party services for background checks.

The discussion also touched on the implications of the bill for landlords who may not conduct formal background checks. Representative Ruby raised questions about the fairness of requiring landlords to refund fees if they choose to rent based on personal references rather than a formal check. This concern was shared by others who noted that not all rental decisions are based solely on background checks, and the bill could inadvertently create confusion regarding the reasons for rental denials.

As the committee deliberated, there was a consensus that while the intent of the bill is to protect tenants by ensuring they are informed about the reasons for rental denials, the language needed to be refined. Suggestions included specifying that refunds should only apply to fees directly related to background checks, rather than all application fees.

The committee's discussions reflect a growing recognition of the need for clear guidelines in the rental process, balancing the rights of tenants with the operational realities faced by landlords. As the bill moves forward, it will be crucial to address these concerns to ensure that it serves the interests of both parties effectively. The next steps will involve further revisions and potential votes, as lawmakers seek to finalize a measure that promotes fairness and transparency in North Carolina's rental market.

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Scribe from Workplace AI
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