PROTECT YOURSELF WITH CLEAR CRITERIA AND INSURANCE Landlords should avoid making rental decisions based on gut feelings or assumptions. Instead, adopt a transparent and written screening process. Apply the same standards to every applicant to avoid the appearance of bias. It’s also wise to keep copies of all screening reports, rental applications, and records of why an application was denied in case questions arise later. Listing specific, legal reasons such as “income below required threshold” or “credit score below minimum criteria” helps demonstrate compliance with fair housing laws. Even when landlords follow fair housing laws carefully, misunderstandings or disputes can still lead to legal claims. That’s why keeping documentation and carrying landlord liability insurance is critical. This type of insurance can help cover legal fees, settlements, and court costs if a tenant or applicant sues for alleged discrimination or wrongful denial. Be sure to review your policy and speak with your insurance provider to ensure you’re adequately covered.
CONCLUSION
Yes, landlords can reject rental applications but not for just any reason. While factors like credit, income, and rental history are fair game, decisions cannot be based on protected characteristics like race, gender, or disability. Landlords who cross the line into discrimination can face serious legal consequences. Tenants who suspect an unfair denial should know their rights and consider seeking help. Meanwhile, landlords can protect themselves and their properties by using consistent, legal screening criteria and staying up-to- date on fair housing laws.
ALEXANDRA ALVARADO Director of Marketing and Education American Apartment Owners Association
Since 2015, Alexandra has been a trusted resource for landlords across the country. In 2016, she launched the American Apartment Owners Association’s (AAOA) educational division and has since hosted and moderated over 200 webinars for thousands of landlords nationwide on topics including screening compliance, evictions, emotional support animals, and more. She curates breaking news and original content for AAOA Today , a biweekly newsletter reaching over 83,000 rental industry professionals, and for RENT Magazine . Alexandra has been interviewed by major outlets such as The New York Times , Fox News, CNBC, CNN, Business Insider, The Washington Post, Wall Street Journal , BISNOW, and Realtor.com.
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