LEGAL REASONS TO REJECT A RENTAL APPLICATION Landlords can and should use objective criteria when evaluating potential tenants. Common legal reasons for rejecting an application include: • Poor Credit History: A credit check reveals a tenant’s track record with managing debt and making timely payments. A consistently low credit score or recent defaults may be grounds for denial. • Insufficient Income: Most landlords require a tenant to earn at least two to three times the monthly rent. If the tenant doesn’t meet that threshold, the application can be denied. Note, in some places like California, you must consider all types of legally verifiable income, including Section 8 housing vouchers. • Negative Rental History: Past evictions, frequent late payments, or property damage can indicate potential problems. References from previous landlords help paint a picture of the applicant’s reliability and an eviction and civil judgments search may reveal if the applicant was taken to court by a previous landlord. • Criminal Background: While not all criminal convictions are disqualifying, landlords may legally reject applicants with convictions related to violence, property damage, or drug-related offenses that could impact the safety of the property or community. If you see a criminal record on your applicant, be sure to verify it first with your tenant screening provider. • Incomplete or False Information: A rental application must be complete and accurate. Omissions or falsified details can lead to rejection. These decisions must be applied uniformly. Creating a written screening policy can help landlords avoid accusations of favoritism or bias. Be sure to share your written criteria before you provide an application, so they are fully aware of what you need to qualify them.
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