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How to Screen and Select Tenants FAQ
Are landlords required to use written rental applications?
While not required, asking prospective tenants to fill out written applications can protect you from lawsuits filed by irate applicants that you rejected as tenants.
For example, suppose you talk to six tenant applicants before renting one of your units. You pick Applicant #3 because you feel he is most likely to reliably pay the rent. Two weeks later, you get a call from a lawyer representing Applicant #5, who claims she was discriminated against because she is African-American and a single mother. If you aren't willing to pay $10,000 to settle the matter, you'll promptly be sued in federal court for $50,000.
Because you have no written documentation explaining how you picked Applicant #3, your insurance carrier proposes to pay the rejected applicant $10,000. After all, the insurance company points out, it looks bad that you picked a white male with no children, especially since it turns out that the African-American single mother has a higher-paying job.
Had you been able to produce all the candidates' comprehensive written applications, their credit reports, and references from previous landlords, the result would likely have been different. You would have had good written documentation supporting why you picked Applicant #3 -- his credit history and job stability were far better than that of Applicant #5, who (despite her current good job) had recently declared bankruptcy and had poor references from previous landlords.
What types of discrimination are illegal when choosing a tenant?
Fair housing laws specify illegal reasons to refuse to rent to a tenant, such as rejecting an applicant because of race, religion, ethnic background, sex, or because the applicant has children or a disability.
In addition, some state and local laws prohibit discrimination based on a person's marital status, sexual orientation, or age.
Landlords are legally free to choose among prospective tenants as long as their decisions comply with these laws and are based on legitimate business criteria. For example, a landlord is entitled to reject someone with a poor credit history, insufficient income to pay the rent, or past behavior -- such as damaging property -- that makes the person a bad risk. A valid occupancy policy limiting the number of people per rental unit -- one that is clearly tied to health and safety -- can also be a legal basis for refusing tenants.
Landlords must apply selection standards, such as requiring a minimum income and a good credit report, equally to all tenants.
FAQs
- Can I get in legal trouble by rejecting a prospective tenant?
- Does the URLTA favor tenants over landlords?
- What is the Uniform Residential Landlord and Tenant Act?
- How can landlords choose a good tenant?
- Are there tenants' rights not covered in URLTA?
Landlords and the Law Forms
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