Key takeaways
- Write objective criteria before you advertise, then apply them identically to every applicant.
- Verify income independently — pay stubs and bank statements, not screenshots.
- Prior landlord references from the second-to-last landlord are the most honest.
- Denials based on consumer reports require an adverse action notice under the FCRA.
Write your criteria first
Before the first showing, document your standards in writing: minimum income multiple, minimum credit score or acceptable payment history, rental history requirements, criminal history policy consistent with HUD guidance, occupancy standards, and pet policy. Publish them with the listing.
Written, consistently applied criteria are your defense against a fair housing complaint. Discretionary judgment applied case by case is how well-meaning landlords end up with disparate treatment claims. Every applicant, every time, same standard.
Income, credit, and what each tells you
The common standard is gross monthly income of two-and-a-half to three times rent, verified with pay stubs, an offer letter, tax returns for self-employed applicants, or bank statements. Verify employment by calling the employer through a number you look up independently.
On credit, the score matters less than the pattern. An applicant with a 620 score from medical collections and perfect rent history is a very different risk from a 660 with recent charge-offs and a prior eviction. Read the report; do not just read the number.
Rental history is the strongest predictor
Call prior landlords, and call the one before the current landlord as well. A current landlord who wants a problem tenant to leave has an incentive to give a positive reference. The previous landlord has none.
Ask specific questions: Did they pay on time? Did they give proper notice? Was the unit returned in good condition? Would you rent to them again? Verify the landlord is actually the owner by checking county property records — applicant-supplied references sometimes turn out to be friends.
Fair housing and FCRA compliance
Federal law prohibits discrimination based on race, color, national origin, religion, sex including sexual orientation and gender identity, familial status, and disability. Many states and cities add source of income, age, marital status, veteran status, and criminal history restrictions.
HUD guidance holds that blanket criminal history bans can produce disparate impact; use individualized assessment considering the nature, severity, and recency of an offense. If you deny based on a consumer report, the FCRA requires an adverse action notice identifying the reporting agency and informing the applicant of their right to a free copy and to dispute it. This is a legal obligation, not a courtesy.
Frequently asked questions
Can I charge an application fee?
In most states yes, but several cap the amount or require refunding unused portions. Some jurisdictions require accepting a recent screening report the applicant already paid for.
What if an applicant has no credit history?
Consider a larger deposit where legal, a qualified co-signer, or additional verification through rent and utility payment history. Apply the alternative consistently to all applicants.
Should I accept housing vouchers?
In a growing number of states and cities, source-of-income discrimination is prohibited and you must. Check local law — this is one of the fastest-changing areas of landlord-tenant regulation.
Sources & further reading
- Fair Housing Act, 42 U.S.C. §3601 et seq.
- HUD Office of General Counsel guidance on criminal records, April 2016
- Fair Credit Reporting Act, 15 U.S.C. §1681m adverse action requirements
Figures and rules change. Verify current requirements with the issuing agency or a licensed professional before acting.