Denying a Tenant: Your Legal Basis

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Each time you publish a property listing at Padleads.com and they syndicate it to high-traffic rental websites, you could expect a handful of applicants that would like to rent out your properties. As you screen those applicants, you have to have certain requirements that they would need to comply with. Not all of them would make the cut but there should be a valid reason for rejecting them.

A landlord cannot reject a tenant based on these factors:

  • Race
  • Religion
  • Gender and Age
  • Persons with disabilities
  • Familial or marital status

They are protected under the Fair Housing Act which prevents any form of discrimination that would hinder them from renting out properties.

However, a landlord can still deny an applicant based on other things and they won’t be accused of prejudice. Here are some of them:

Insufficient or unverifiable income

The ideal monthly income of the tenant should be at least thrice the amount of the rent. This is to make sure that they can afford to pay rent every single month. Having an insufficient income is a very valid basis for rejecting an applicant. You should require their income documents and their credit report before approving their lease.

A landlord should validate their income to check if they can afford to pay rent. An applicant who will not divulge that information may be denied.

Smokers

It is ok to reject an applicant who is a smoker. You should gather this information from the get-go. If your house rules include a no smoking policy, no one should be exemption to that rule. Smoking is a health and fire hazard that might result in bigger problems in the future. Some of the tenants may also complain about a smoking neighbor.

Pet-owners

If you have a “no pets” policy and they insist on bringing in their dogs or cats, then you can deny their application. You have to consider the other tenants who might have a problem with the noise and some might be allergic to animals.

white dog and gray cat hugging each other on grass

However, one exemption are service animals. But this will depend on which state you are in. Some states will not consider it a discrimination if you deny a tenant with a service animal. Know your local laws first.

Criminal Records

Note that a criminal record is not the same as an arrest record. Someone can be arrested but not convicted. A landlord can deny an applicant for some cases that they might think would put the other renters at risk.

No previous record of renting a property or has a record of not paying rent

An applicant with no previous history of renting properties can be denied as they might have been dependent on someone else in the past to provide them with housing. It is your job to check if they are financially capable of living on their own and how they can be able to provide the payment needed each month. However, don’t automatically reject these applicants with no tenant history because they still may have the capacity to pay.

When contacting someone’s previous landlord and you find out that they had a difficult time collecting rent from the applicant before, then you can deny that applicant. If they did it once, they can do it again. Also, watch out for those who have a history of damaging the property.

Discrepancies and questionable information in their application

If they put questionable details in their application, then they probably don’t want you to know something and that is usually a red flag. Do not ignore those inconsistencies as they can tell you a lot about someone.

However, before jumping into a conclusion, ask them about the things you are uncertain about. If they still won’t provide the information that you’re asking for, then you have a valid reason to reject them.

These are just some of the possible reasons for you to reject a lease application. There are several more but if you see one or two of these, then move on to the next applicant. Screening applications thoroughly could save you from any problems with your future tenants.

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