By Alexandra Alvarado
Landlords have the right to choose who they rent to, but that right isn’t absolute. Knowing where the line is between legal discretion and illegal discrimination is critical and sometime even landlords with the best intentions can reject applicants in a way that may lead to a lawsuit.
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.
ILLEGAL REASONS TO REJECT A RENTAL APPLICATION
The Fair Housing Act prohibits discrimination in housing decisions based on:
✓ Race
✓ Color
✓ National origin
✓ Religion
✓ Sex (including gender identity and sexual
orientation)
✓ Familial status (such as having children)
✓ Disability
For example, it is illegal to deny housing to a single mother, a person who uses a wheelchair, or someone because of their ethnic background or religion. Local laws may add more protections, such as age, gender identity, source of income, or marital status.
Even asking questions that hint at a tenant’s membership in a protected class like “Are those your kids?” or “Where are you from originally?” can be problematic. You should only consider the factors that are directly related to their ability to pay rent.
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WHAT ABOUT TENANTS WITH DISABILITIES?
Under the Fair Housing Act, landlords are required to make reasonable accommodations for tenants with disabilities. This may include allowing service or emotional support animals in a no-pet building or permitting the installation of grab bars in a bathroom.
Rejecting a tenant solely because of their disability or because they request an accommodation is illegal unless the request causes undue hardship. Undue hardship refers to an accommodation that would be excessively costly or difficult to implement; to demonstrate this, landlords should obtain quotes from multiple sources to show they made a good-faith effort to accommodate the tenant.
WHAT TENANTS CAN DO AFTER A REJECTION
If their application is rejected, tenants are entitled to ask why. Landlords who deny based on credit must provide an adverse action notice if a third party credit report was used. A custom adverse action letter, or declination letter, is provided with every AAOA tenant screening report, so that you can print or email it and provide it to the applicant. If a tenant suspects discrimination, they can:
✓ File a complaint with the U.S. Department of
Housing and Urban Development (HUD) or your
state’s fair housing agency.
✓ Contact a local tenant rights organization for
assistance.
✓ Seek legal advice from a housing attorney,
sometimes pro bono.
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.
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When the Fair Housing Act (FHA) comes up, the conversation typically centers around leasing, advertising, or resident interactions. But an often-overlooked aspect is how maintenance services, including unit repairs, are handled. While the FHA doesn’t directly reference “repairs” or “maintenance,” it clearly prohibits discrimination in the delivery of housing-related services. This broader interpretation includes how repair requests are prioritized, addressed, and communicated. Every resident—regardless of their race, national origin, disability, or any other protected category—deserves the same level of service and respect when it comes to their home’s upkeep.
When a Maintenance Delay Becomes a Legal Concern
Delays in repair work are part of property operations. Supply chain disruptions, vendor availability, and resident scheduling can all slow things down. But when a resident starts to believe these delays are linked to their protected status, it moves into fair housing territory. Even if a delay is legitimate, a resident’s perception of unequal treatment can lead to a discrimination complaint. That’s why it’s critical to be consistent and transparent about how repair requests are handled. The moment it seems that one resident’s needs are regularly deprioritized compared to another’s, it opens the door to legal scrutiny under fair housing law.
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How Property Managers Can Stay Compliant
Maintaining fairness and avoiding even the appearance of discrimination means taking a proactive and thoughtful approach. It begins with consistent service. All repair requests should be managed with the same urgency and level of professionalism. Communication plays a big role as well. Residents should be kept informed about delays and next steps. A quick call or email updating them on a backordered part or a rescheduled technician can go a long way in preventing frustration and mistrust.
Documentation is also essential. Keeping clear records of when requests were made, what steps were taken, and any follow-up conversations provide valuable support in the event of a complaint. These records show that decisions were based on operational realities—not on who the resident is. In addition, regular training for office and maintenance staff helps reinforce the importance of equitable treatment and teaches teams how the FHA applies beyond leasing.
When complaints do arise, timely and respectful resolution is key. Addressing concerns quickly and thoughtfully not only resolves the immediate issue but also strengthens your community’s trust in your commitment to fairness and equal treatment.
Building Trust Through Fairness
Although unit repairs may not be mentioned by name in the Fair Housing Act, the principle of non-discrimination applies to every service a housing provider offers—including maintenance. Property managers who remain vigilant, transparent, and fair in how they respond to repair needs are doing more than just protecting their communities—they’re also protecting their teams and their organizations from legal risk. With consistent communication, thoughtful documentation, and a clear understanding of fair housing responsibilities, property professionals can ensure that every resident feels respected, heard, and equally cared for.
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