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Permissible Causes For Refusal THERE ARE REASONS YOU CAN REFUSE A PROSPECTIVE TENANT Also see: Tenant Selection | Tenant Screening | Tenant's Social Security Numbers | Credit Reports A landlord is entitled to be assured, within reason, that a prospective tenant will be a desirable resident. The key to avoiding problems with civil rights claims is to have routine standards that are not discriminatory. Then, if an applicant doesn't qualify, you can deny renting to them while showing that you have applied the same standard to all your tenants.
Make sure that your policies are clearly spelled out in written form. Be willing to discuss these terms or have copies available. Be sure that situations which will warrant an exemption to your policy are also noted. In selecting tenants, property owners and managers may use any criteria or guidelines that do not discriminate against the Federal seven protected classes.
Race - Color - Religion - Gender - National origin - Familial status - Mental or physical handicap.
Note: State law, and some cities, have added a great many other protected classes, including: age- children - military service - pets - sexual orientation - even political affiliation.
Permissible selection criteria include the following top
Won't provide you with proper identification
The more "hard copy" identification a property manager can get, and copy, from a prospective tenant the less likely the tenant will be to trash and skip. Never take anyone's word for who they are if you are about to loan them money or the keys to your property. A the very least a good prospect will be able to provide a driver's license and perhaps a social security card that can be copied. It is also a good idea to include a bank statement, a pay stub, utility bill or anything else the applicant has available.
Even though it is a good idea to require that tenants provide you with the name and address or phone number of their present or previous landlords, the references that you get from the present landlord may not always be honest. If the tenant is a problem, their landlord my want to get rid of them enough to mislead you. If they are a great tenant, the present landlord may well want to keep them. A previous landlord is more likely to tell you the truth. Acceptable reason for moving may also be considered. Return to List of Reasons
Fails to complete and sign application and/or lease If you are looking for a reason to refuse to rent to a tenant, without having to address personal issues, an incomplete application is reason enough. An unsigned application is not worth the paper it is written on because you cannot check references or even pull a credit report without the tenant's signature.
The property owner may assess the tenant's credit history and reject any tenant whose history shows late payments, prior evictions, bankruptcy, overdue credit card payments, or other evidence of lack of creditworthiness. Computerized credit reports may be obtained through credit bureaus, local apartment associations, or associations of Realtors. See Tenant Screening for a list of credit agencies available on the web.
Many landlords and managers develop a standard set of rental guidelines to evaluate a prospective tenant's creditworthiness and use an * application checklist. (Some landlords even create a point system for each criterion, with a minimum score determined as a cut off point for rental acceptance.)
* An Application Checklist is one of hundreds of forms and agreements available for printing or download to RHOL members. Return to List of Reasons
Landlords must understand that the phrase "No Pets" cannot prevent a visually handicapped tenant from owning a seeing eye dog. That would constitute discrimination against a protected class. Landlords should also realize that having a blanket policy against all pets, and advertising "No Pets" may eliminate their best possible prospects. People who live alone, particularly older people, want and need the company of a pet.
My business partner and I had both prohibited pets in our rental units for many years, when we were given an opportunity to represent Cardinal Industries, a manufactured housing company headquartered in Columbus, Ohio. If you have ever seen one of Cardinal's Knights Inn motels, you will recognize the similar looking rental housing complexes that are scattered throughout the nation. During our introduction to the company, we learned that they managed more than 5,000 units and accepted pets in all of them. We were shocked ... but after a few moments of explanation, we quickly understood the error of our no pet policy.
People will have pets, whether you permit them or not. Cardinal dealt with the issue honestly and up front. They explained that pets cost landlords money and explained the reasons why. Then they included the pet on the lease and charged additional rent to compensate. We discuss the issue in more detail and offer suggestions on how to allow pets and minimize losses on our pets pages.
Return to List of Reasons
A tenant with a history of violence or destructiveness must be given careful scrutiny. Past instances of violence or destructiveness may considered in assessing a residential tenant's ability to coexist peacefully with other tenants. For example, a property owner may reject an applicant whose former landlord reported that the applicant was arrested on several occasions for disorderly conduct at the former residence. Many states now allow a review of criminal records. Return to List of Reasons
The law does not guarantee a person a right to rent property that he or she cannot afford. Property owners and managers may, therefore, establish reasonable guidelines to assess the prospective tenant's ability to pay. For example, the owner may require that the rent not exceed 30 percent of a residential applicant's income. In assessing the prospective tenant's ability to pay, the property owner must consider all income that the tenant has a reasonable expectation of collecting in the future. This includes welfare, social security income and disability income. Some owners try to deny housing to beneficiaries of government programs, which may be construed as a discriminatory act. Other criteria might include job stability, however. (e.g., a requirement that applicant has held his or her present job for one year or more)
Return to List of Reasons
The applicant may not have enough cash available to pay the first month's rent in advance and a security deposit. The landlord may also wish to determine if there is sufficient funds in a checking or savings account to meet emergencies. (Note: many states limit the amount of money that may be required in advance.) If rental guidelines are used, landlords must take care to apply them equally to all prospective tenants. Using guidelines to justify discrimination, or applying guidelines to some groups but not to others, is a violation of fair housing laws. Return to Top
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