Key Takeaways

• Federal and state Fair housing laws protect applicants and tenants from discrimination. Federal and North Carolina fair housing laws apply to most residential properties and prohibit housing decisions based on protected characteristics.

• Consistent policies are essential for compliance. Landlords should use the same advertising, screening, leasing, maintenance, and accommodation practices for all applicants and tenants, while avoiding actions that could create discriminatory treatment.

• Disability-related requests require careful consideration. Landlords may need to provide reasonable accommodations or allow reasonable modifications for qualified individuals with disabilities, including requests involving assistance animals or accessibility features.

The enactment of the North Carolina Fair Housing Act in the US occurred on April 11, 1968. The main goal of the act was to prohibit housing discrimination, either in the unit or sale of housing. 

As an North Carolina landlord, it’s important to familiarize yourself with the North Carolina fair housing Act and act to avoid potential housing discrimination claims from your tenants and enforce equal opportunity while renting. 

What is the Goal of the Fair Housing Act? 

The goal of the Federal Fair Housing Act is to end housing discrimination in the sale, rental, and financing of housing based on certain protected characteristics while renting. 

Landlords, owners, real estate agents, and property managers all need to be aware of what Fair Housing covers and how they can avoid any discriminatory behavior. 

There is both a North Carolina and federal Act. Protections exist at both federal and state levels. In North Carolina, the protected housing classes are race, color, religion, sex,  national origin, education level, disabilities, race and familial status (i.e. having children or not). 

What Types of Properties Does the North Carolina Fair Housing Act Cover? 

The North Carolina Laws cover most residential units. 

Examples include single-family homes, housing condos, apartments, group homes, migrant housing, long-term lodging, and even shelters for the homeless and domestic housing violence victims. 

In very limited circumstances, the North Carolina Fair Housing regulations have a few exceptions. These are: 

• A single-family housing that the North Carolina property owner renting out without using real estate agents or services. 

• Housing with 4 or fewer units that are specifically owner-occupied buildings. 

• Private clubs that give preference to their members. 

• Organizations that give preference to their members, such as religious organizations. 

What Local Agency Enforces the State Fair Housing Law? 

The U.S. Department of Fair Housing and Urban Development is the main federal agency tasked with enforcing the federal Act. 

Some states also have government agencies that enforce the act at the local level. North Carolina is one of them. 

Anyone who feels discriminated against for fair housing related matters due to their religion, national origin or other protected classes can file Fair Housing Complaints with the North Carolina Human Relations Commission (HRC).

Are There Penalties for People Found Guilty of Housing Discrimination? 

Yes, there are. According to the U.S. Department of Housing and Urban Development (HUD), first-time violators of the federal Housing Act can be penalized a maximum of $16,000. For those who violate the housing act again within five years, the maximum penalty currently stands at $37,500. 

And for those with more than two illegal fair housing violations within 7 years, the maximum penalty is a whopping $65,000. In addition to the North Carolina civil penalties, other penalties for illegal violations of the act can also include the following:

• Being responsible for your tenant’s compensatory damages. This can include having to pay their out-of-pocket expenses as they seek alternative housing. 
• Punitive damages for the wrongdoing where the intent is found to be either malicious or willful based upon factors like sex and race. 

What Are Some Examples of Fair Housing Act Violations that Landlords Should be Aware of? 

Housing landlords in North Carolina have the responsibility to make sure their tenant screening and placement process is free of housing discrimination. 

When investing in North Carolina real estate, remember that landlords can up having to pay fines for illegal violations of the North Carolina Act if you’re not careful.

It’s possible to unknowingly and unintentionally violate the Fair Housing Act, leading to trouble with the law. Here are some examples to avoid under North carolina Fair Housing Act:

• Failing to rent your vacant unit to a tenant because of characteristics under fair housing such as race, color, religion, sex, education level, national origin, familial status, sex and so on. 

• Lying that your rental home isn’t available for housing rent because a prospective tenant has a characteristic you don’t like, such as being pregnant or having children. 

• Using different qualifying criteria for housing applications depending on the applicant’s race, color, religion, sex, familial status, or any other protected class under the housing act. 

• Treating tenant maintenance requests differently based on who asked for them. 

• Threatening or interfering with your tenant’s exercise of their fair housing rights. 

• Providing different tenants with different services, amenities, renting prices, and housing accommodations based on a protected characteristic like race, color, religion, sex, familial status,  or national origin.

• Refusing to make housing accommodations for a prospective tenant with a physical disability. 

• Refusing to allow a person to have their service animal in the unit. 

What Rights Do Disabled Tenants in North Carolina Have Under Fair Housing Regulations?

People with disabilities have the right to fair housing. This means that it’d be unlawful for you to discriminate against your renter because of their housing disability. For example: 

• Rejecting an housing application for the rental solely based on the applicant’s housing disability. 
• Charging a disabled person a pet fee, if they have a service animal.
• Rejecting a renter because of having a service animal.
• Refusing to make housing accommodations to the lease agreement for their disability.

As a North Carolina landlord, you have a responsibility to ensure a disabled tenant habitating your property can enjoy their rented space, just like any other tenant. To do this, you’re required by the state landlord-tenant laws to make certain reasonable housing accommodations and modifications.

The following are some examples of reasonable housing accommodations and modifications to make in housing accordance with the North Carolina Fair Housing Acf: 

What Can a Landlord Do to Avoid Fair Housing Law Violation Claims from Tenants?

The following are some tips to keep in mind when dealing with both prospective and existing tenants in North Carolina:

• Advertise your rental property the right way. Avoid phrases or statements that show preference to a particular group of tenants. For instance, avoid stating any sort of discrimination such as “No Pets,” “Christian Home”, or “Ideal for a Single Professional” or "looking for this specific national origin."
• Have a proper tenant screening process. Yes, you have the right to choose the kind of tenant that you want. However, you can’t subject applicants to discrimination in the process. Asking a tenant about whether they are married, for instance, would be discriminative. So would asking different questions to different applicants. 
• Hire an experienced property management company. This is your best bet against all manner of illegal issues. A great rental property manager understands the legal obligations of Rental owners, what they can do to avoid discrimination against tenants based on many factors such as those seeking housing assistance, as well as other property management laws. 

Bottom Line

There you have it, an overview of the North Carolina Fair Housing Act. When habitating a property, landlords, rental owners, real estate agents need to ensure that they remain compliant with the law to avoid discrimination claims. 

KRS Property Management is here to help! Contact us to learn more about our housing management services or to speak with a property manager!

Frequently Asked Questions

Does the Federal Fair Housing Act Apply to all North Carolina Properties?

The North Carolina Fair Housing Act applies broadly to residential housing, including houses, apartments, mobile homes, and other residential properties, although limited exemptions exist. Property owners should determine whether an exemption actually applies before assuming they are outside fair housing requirements.

Can Landlords use Different Tenant Screening Criteria for Different Applicants?

No. Landlords should establish consistent, objective screening criteria and apply them uniformly to qualified applicants. Using different income, credit, rental history, or other standards because of a protected characteristic can create fair housing concerns.

What Should Landlords Consider when Advertising a North Carolina Rental?

Rental advertising should focus on the property's features, qualifications, and lease terms rather than the type of person the owner hopes to attract. Avoid language that suggests a preference or limitation based on race, color, religion, sex, national origin, familial status, or disability.

How Should a Landlord Handle a Request for a Reasonable Accommodation?

Landlords should evaluate reasonable accommodation requests individually rather than automatically denying them. Depending on the circumstances, an accommodation could involve an exception to a property rule or policy, while a reasonable modification may involve a physical change to the property; housing providers generally must allow reasonable accommodations when required to provide equal housing opportunity.

Are Assistance Animals Treated the Same as Pets Under Fair Housing Law?

No. An assistance animal is not considered a pet under the Fair Housing Act, and a qualified resident may request an assistance animal as a reasonable accommodation even when the property has a no-pets policy. Owners should evaluate these requests according to applicable fair housing requirements rather than automatically applying standard pet restrictions or fees.

Can a Landlord Deny an Applicant Because they have Children?

Generally, no. Familial status is a protected class under North Carolina's Fair Housing Act, which protects families with children from discrimination in housing. Landlords should avoid occupancy policies or advertising that effectively discourage families with children unless a specific, legally recognized exception applies.

How can Professional Property Management help Reduce Fair Housing Risks?

A professional property manager can establish consistent leasing and screening procedures, standardize property advertising, document rental decisions, and help ensure applicants and residents are treated consistently. KRS Holdings focuses exclusively on property management and offers services for single-family homes, apartments, and multifamily buildings, giving owners a structured approach to managing leasing and day-to-day rental operations.

This content is not a substitute for constitute legal advice. Please contact a qualified attorney or property management firm for further questions.