Finding reliable, respectful tenants is one of the most important parts of successful property management. Good tenants pay on time, care for the property, and communicate responsibly. But choosing those tenants must always be done within the boundaries of federal, state, and local fair housing laws.
Here’s a clear, practical guide to selecting great tenants—legally and ethically.
1. Know the Fair Housing Basics
The federal Fair Housing Act prohibits discrimination based on:
- Race
- Color
- National origin
- Religion
- Sex (including gender identity and sexual orientation)
- Familial status
- Disability
Many states and cities add more protected classes, such as age, marital status, source of income, military status, or criminal history protections. Before you screen anyone, review your local laws.
The key: Your criteria must be the same for every applicant—no exceptions.
2. Start With Objective, Pre-Written Screening Criteria
The best protection from unintentional discrimination is to create written qualification standards before you list your rental. These may include:
- Credit score minimum
- Choose a reasonable threshold based on your market.
- Income requirements
- A common standard is monthly income equal to 2.5–3x rent, but verify what’s legal in your state (some areas limit source-of-income rules).
- Employment and income verification
- Pay stubs, W-2s, or offer letters.
- Rental history
- Look for no evictions within a set timeframe and positive landlord references.
- Background check
- Check what your local laws allow—some cities limit how criminal history can be used.
Once established, apply these standards exactly the same way for everyone.
3. Use a Consistent Application Process
A uniform process not only keeps you compliant—it keeps you organized. A strong process includes:
- A clear, written rental application
- Authorization for background/credit checks
- A timestamped system for reviewing applications in the order received
- Standardized questions asked of every applicant
Never make exceptions like “I’ll skip the credit check for this applicant because they seem nice.” Exceptions introduce risk.
4. Focus on Behavior and Qualifications—Not Personal Characteristics
Here’s what you can evaluate:
- Ability to pay rent
- Stability of income
- Past rental behavior (late payments, property damage, complaints, etc.)
- Accuracy and completeness of the application
Here’s what you cannot evaluate:
- Whether they “look trustworthy”
- Whether they have kids
- Whether their last name sounds foreign
- Whether they “seem like a good fit for the neighborhood”
- Whether you feel more comfortable with them personally
If a criterion sounds subjective or personal, don’t use it.
5. Advertise the Right Way
Write listings that focus on the property, not the type of tenants you want.
Good examples:
- “2-bedroom apartment with in-unit laundry and parking”
- “No smoking, pets allowed with deposit”
Risky or illegal examples:
- “Perfect for singles or young professionals”
- “Ideal for families”
- “No kids”
- “Safe neighborhood for women”
Keep it property-focused, not people-focused.
6. Document Everything
Good records protect you against complaints and help you refine your process.
Document:
- Your written screening criteria
- Date and time each application was received
- Screening reports
- All communication with applicants
- Reasons for denial (based strictly on your criteria)
If you ever have to defend a decision, your paperwork will speak for you.
7. Offer Adverse Action Notices When Required
If you deny an applicant based on information from a credit or background report, federal law requires an Adverse Action Notice, which includes:
- The name and contact info of the reporting agency
- A statement that the agency didn’t make the decision
- The applicant’s right to dispute the report
Many landlords forget this step—but it’s legally essential.
8. Treat Reasonable Accommodation Requests Seriously
For applicants or tenants with disabilities, you may need to:
- Allow service animals or emotional support animals (even in no-pet units)
- Provide accessible parking or alternative communication formats
- Adjust certain policies as long as they do not cause undue hardship
You can still apply your standard criteria—just fairly and with accommodations as required.
Final Thoughts
Choosing the right tenants is about consistency, documentation, and clear, objective standards. When you focus on financial reliability, rental behavior, and completeness—not personal traits—you’ll naturally attract responsible tenants and stay compliant with fair housing laws.
By treating every applicant with professionalism and fairness, you protect your business—and build a reputation as a landlord who does things the right way.