Reasons it is legal to turn down a rental application

When can you, as a landlord, say no to a rental application? Find out what the law says and how to keep your screening process for tenants from being unfair.

What you will find out:

Why would an application for a rental be turned down?
What are some legal reasons why a rental application might be turned down?
Can you be turned away from a place to live because of a theft, a past arrest, or another type of crime?
What are protected classes, and how do they affect tenants?
Does this mean I can treat people unfairly who do not belong to a protected class?
Choose your renters carefully, but do it legally

As a landlord, you decide how much to charge for rent and a deposit based on how much it costs to keep your property in good shape, pay the mortgage, and cover other costs. You also have to leave room for unexpected costs and the odd late rent payment. You will be able to make a small return if you can handle these costs and stay competitive in the renting market. Still, not all renters work out. That is why it is so important to be picky about who gets your property, starting with a thorough Rental Application process.

The wrong renter can cost you hundreds or even thousands of dollars in fixes, court fees, or missed rent, not to mention time and trouble. Even though you do not have to rent to anyone, you should know what is and is not allowed when you turn down a candidate. If you know where these lines are, you will be able to find the right neighbors without crossing any lines that are illegal or unfair.

We have answered questions you might have about the legal reasons to turn down a rental application, as well as the reasons that are absolutely not allowed.

Why would an application for a rental be turned down?

When you check an applicant’s references, background, and credit record, you will find most of the good reasons to turn them down. But you can save time by not accepting applications that are not full (unless it is an honest mistake and they give you the missing information when you ask) or do not give permission for a credit report or background check.

You can also turn down an application if it gives you fake information, which you might not know until you do some research. It is best to work with a lawyer to make sure that your ways of screening tenants do not hurt anyone.

What are some legal reasons why a rental application might be turned down?

Depending on the rental market where you live, you might get a huge pile of applications for each open spot on your property and need to narrow it down to a number that you can handle. Your ad should include basic information, like how many people can live there and whether pets are allowed. This will cut down on the number of unfit people who apply in the first place.

You can also use the application to ask questions about things you already talked about in the ad. These “softball” questions can help you quickly weed out some of the applicants before you call references or do background checks:

How many people will live in this rental room all together?
Do you own any animals?
Are you a smoker?
Do you have a business that you run from your house?

In general, you can turn down candidates who have pets (unless they are service animals), smoke or vape, run certain kinds of home companies, or have more people living in their home than the law allows. Just like you can say that people can not smoke on your land, you can also say that people can not use cannabis there and turn down applicants who want to do so. This includes medical marijuana, which federal law does not recognize.

During the background check, by looking at their credit record, or by asking their contacts, you may find other valid reasons to turn down a rental application. Some of these reasons are:

Unsatisfactory references: You might turn down their application if you do not trust their past renters, if their workplace makes it sound like they are just one mistake away from being fired, or if their personal references give you pause.

Spotty rental history: Ask them for permission to run a rental history report, which will show any evictions and give you permission to talk to their previous owners about their history, including any late payments.

Moves often: There are many good reasons why someone might move often, but it could also mean that they are not stable enough to keep the rules of the lease.

Poor credit report: Usually, it is not fair to expect a credit report to be perfect, but past failures or a very high amount of debt could be red flags.

Not enough money: On the application, you should ask about their income, and you should also check with their workplace. If you can not confirm their income or it is not enough to cover the rent, you can usually turn down their application.

Ask a lawyer for help figuring out how to screen renters without breaking the law.

Can you be turned away from a place to live because of a theft, a past arrest, or another type of crime?

It depends. The federal Fair Housing Act (FHA), which all states must follow, says that people who want to rent a home can not be treated differently because of convictions or charges that do not lead to a finding. Depending on your state, you may also have to follow city rules. For example, landlords are not allowed to do illegal background checks in some areas. Talk to a lawyer to find out what specific rules apply to how you screen your tenants.

What are protected classes, and how do they affect tenants?

A “protected class” is a group of people who, because they have something in common, are protected by the law from discrimination or abuse. Protected groups can be set up at either the state or federal level.

The FHA and other government laws make it illegal for renters or property owners to treat people differently because of:

Color and race
Religion
Country of birth
Gender Family or marriage situation Age Disability (real or thought to be real)
Taking part in a government assistance program (like Section 8)
Sexual orientation or gender identity (applies to property owners who get HUD money or a HUD-insured loan, but LGBTQ people may also be covered by state rules)

Keep in mind that there may be more safety measures at the neighborhood level. If you do not know what a protected class is or if a potential renter says you treated them unfairly because of any of the above, you should talk to a lawyer.

Does this mean I can treat people unfairly who do not belong to a protected class?

No, not always. You can not turn down applications just because you do not want to. If you do not want to rent to someone, you need a good reason, like not having enough money or bad recommendations. As a landlord, you might decide not to rent to people who smoke because you do not want to risk damage to your property. However, you can not do things like discriminate against all people with long hair or those who are shorter than six feet.

Choose your renters carefully, but do it legally

It is your property and your business, so you do not have to give it out to the first person who fills out an application. You will want to make sure they are a good fit and will pay rent on time, but you have to do it properly. Ask a lawyer if you have more questions about renter screening or any other landlord-tenant issues.