How to Reject A Rental Application

To protect yourself from potential discrimination complaints filed by applicants you've turned down you need make sure you base your decision based on the information you've collected from your rental application. Please refer to "Does Your Rental Application Ask Enough in a post this past February.

Additionally, you can protect yourself further if you have a standard set of guidelines for evaluating that you apply to every applicant. Decide ahead of time what criteria are most important to you. Give this set of criteria a numerical order. What will you look at first — what reasonable standard do you require? For those who passed the first test, what will come second? Third?

If you check each application and credit history according to that pre-established order as you weed out candidates, you're all set. And you won't have to worry about whether you made a sound decision or have broken any fair housing rules. The following criteria are all valid reasons to turn down an applicant when used as part of a standard set of guidelines.

Poor Credit Record or Insufficient Income: If your applicant's credit history indicates frequent nonpayment of rent or if, based on information submitted, the rent is too high for the reported income, you can turn down an applicant.

Poor Prior-Landlord References: If previous landlords say the applicant's rent payment often came in late or that the apartment was left in poor shape, you can refuse to rent to that person.

Evictions and Civil Lawsuits: If an eviction is noted on the credit report and the landlord won the lawsuit, you can turn that person away. (If, however, the tenant prevailed, you should make your decision using other criteria.) If you have any doubt about whether your decision would be considered valid, consult a lawyer before notifying the applicant.

Criminal Records: You can refuse to rent to anyone who has been convicted of a criminal offense (with the exception of a drug-use conviction). In some locations you may find convictions listed on an applicant's credit report. (An applicant with a prior drug-use conviction is protected by the Fair Housing Amendments Act because the use of drugs is considered a disability. You cannot reject an applicant for previously using drugs, but you can legally refuse to rent to anyone who has been convicted of manufacturing or selling drugs.)

Incomplete or Inaccurate Rental Application: You can reject anyone who has not answered all the questions on your rental application. Likewise if you discover that someone gave you false or inaccurate information, you can reject that person, too.

Unable to Meet Terms of Lease: You don't have to consider anyone who is unable to pay the required security deposit or to rent the apartment for the length of the lease. If you have a one-year lease and they only want the apartment for nine months, it's legal to say “No.”

Pets or Smokers: You can refuse to rent to smokers or people with pets if your space for rent is designated “nonsmoking” or “no pets.” However, if an animal is trained to assist someone who is blind, deaf, or mentally or physically disabled, it must be allowed.

If a couple, married or not, wants to rent an apartment, you must use both of their incomes in determining whether they can afford your rent. If you don't, you risk a discrimination complaint about marital status or sex.
Always Write Down Why

When you reject an applicant, note the reasons for your decision. Put them on the back of the rental application. Then file it and other appropriate documentation. Don't throw any of this information away. You may need it later if a discrimination complaint is filed. The application also might come in handy later if that person tries to rent another apartment from you.