The next thing he told me was that I would need to create a company, lease the house to myself and put the other roommates on that lease in order to charge them rent.

I have also had tenants do work that they said was free at the time, only to come back later when moving out and try to charge me.

If you didn't over-pay for the house and he didn't charge you closing fees I'd just adhere to w.e he says....Your best bet is to post on Avvo and see what the lawyers say (its free).

Should you allow them to look at the place and filled out the application?

s) but if they direct deposit they can make a small deposit and it will be considered accepted and nullify your case.Also, make sure you are charging a late fee 5% in NC that seems to motivate people as well. 

They usually charge several $100.

Plus, I'm pretty sure they were charging me for inspections they didn't do.

Be ready to go with the application, lease agreement, etc. 

The Civil Rights Commission will assign an investigator to see if there is cause for a charge - they do not operate on a "guilty until proven innocent" basis.

@Franka HauckAndrew gave you some valuable tips.A couple things to keep in mind1) Charge market rent to your inlaws.