Can a Landlord Reject an Application for Any Reason?

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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