Tenant Screening and Fair Housing Basics: A Practical Guide for Landlords and Property Managers

Tenant screening is one of the most important tasks you perform as a landlord or property manager. Done well, it helps you select responsible renters, reduce late payments, and protect your property. Done poorly—or illegally—it can expose you to costly fair housing complaints, lawsuits, and damage to your reputation. Knowing the basics of tenant screening and Fair Housing laws gives you a strong, legal framework for choosing tenants confidently and fairly.

What Is Tenant Screening and Why It Matters

Tenant screening is the process of evaluating rental applicants to decide who is most qualified to rent your property. It goes beyond a quick conversation; it is a structured, documented process based on consistent, objective criteria.

Effective tenant screening helps you:

• Reduce the risk of non-payment or late rent
• Minimize property damage and costly turnovers
• Increase stability and satisfaction in your rental community
• Protect yourself from claims of unfair or discriminatory treatment

However, screening must always be done within the rules of Fair Housing laws. Even an unintentional mistake—like asking the wrong question or applying criteria inconsistently—can be interpreted as discrimination.

Fair Housing Laws: The Legal Foundation of Tenant Screening

Fair housing rules are the backbone of a legal, ethical tenant screening process. Understanding them is non‑negotiable for every landlord and property manager.

The Federal Fair Housing Act: Protected Classes

The U.S. Fair Housing Act (FHA) prohibits discrimination in housing based on the following protected classes:

• Race
• Color
• Religion
• Sex (including sexual orientation and gender identity)
• National origin
• Familial status (including children under 18 and pregnancy)
• Disability (physical or mental)

You may not treat applicants differently, deny housing, impose different terms, or use screening criteria that unfairly impact people because of these characteristics.

State and Local Fair Housing Protections

Many states and cities add extra protected classes beyond the federal list. Depending on your location, it may be illegal to discriminate based on:

• Source of income (e.g., housing vouchers, SSI, child support)
• Marital status
• Age
• Military or veteran status
• Gender expression
• Citizenship or immigration status (within certain limits)
• Criminal history (with specific restrictions)

Always check your state and local fair housing laws, because they can be stricter than federal law.

Types of Discrimination to Avoid

Discrimination is not always obvious. The law recognizes several forms:

• Direct discrimination: Openly refusing to rent to someone because of a protected class (e.g., “No kids,” “No vouchers”).
• Indirect or disparate impact: Using a policy that seems neutral but disproportionately harms a protected group (e.g., overly strict criminal record bans that impact certain racial groups).
• Harassment or steering: Pressuring, discouraging, or guiding certain groups away from your property or specific units.
• Failure to accommodate: Not making reasonable accommodations or modifications for applicants with disabilities when required.

Building a Fair and Consistent Tenant Screening Policy

A written screening policy is one of the best protections you have. It keeps you consistent, documents your criteria, and shows that your decisions are based on business factors, not personal preferences.

Key Elements of a Written Screening Policy

Your policy should clearly describe:

• The minimum criteria for rental approval
• Which screening tools you use (credit reports, background checks, etc.)
• How you evaluate negative information (e.g., late payments, evictions)
• How you handle incomplete or inaccurate applications
• Procedures for adverse action notices (required when you deny or change terms based on screening)

Objective Criteria vs. Subjective Judgments

Stick to measurable, objective criteria. Avoid vague standards like “good attitude” or “seems like a good fit,” which can mask bias. Instead, use criteria you can document and apply equally.

Good Screening Criteria	Poor Screening Criteria
Minimum credit score (e.g., 650+)	“Looks responsible”
Income at least 2.5–3x monthly rent	“Seems like they make enough money”
No evictions in past 3–5 years	“I just have a bad feeling about this applicant”
No unpaid landlord judgments	“Not my type of tenant”
Verifiable rental history of 12+ months	“They don’t dress professionally”

The Rental Application: What You Can and Cannot Ask

Your rental application is the foundation of your screening process. It should gather the information you need—without asking illegal or intrusive questions that could create fair housing problems.

Information You Should Request

Typically, a compliant rental application includes:

• Full legal name and contact info
• Date of birth (for credit/background checks)
• Social Security Number or ITIN (if required for screening)
• Current and previous addresses, with landlord contact info
• Employment and income details (employer, position, length of employment)
• Other sources of income, if applicant chooses to disclose
• List of all occupants (adults and children) and their relationship to the applicant
• Consent to run credit and background checks
• Pet information, if your policy allows pets

Questions You Must Avoid

Some questions are off-limits because they relate directly to protected classes. Avoid asking:

• “What is your race/ethnicity?”
• “Are you married, divorced, or single?”
• “What country are you from?” or “Are you a U.S. citizen?” (unless absolutely required by law, which is rare)
• “What church do you go to?” or “What religion are you?”
• “Do you plan to have children?” or “Are you pregnant?”
• “Do you have a disability?” or “What medications do you take?”

If you use an application template, review it carefully for any questions that could violate fair housing laws.

Application Fees and Transparency

If you charge an application fee, ensure that you:

• Charge the same amount to all applicants for the same unit
• Disclose whether the fee is refundable and under what conditions
• Use the fee only to cover actual screening costs (in some states, this is legally required)
• Provide receipts or documentation, if required by local law

Evaluating Credit and Income Fairly

Credit and income checks help you assess an applicant’s ability and likelihood to pay rent on time. They must be applied consistently and fairly.

Setting Clear Income Requirements

Many landlords use a standard such as “gross monthly income must be at least 2.5–3 times the monthly rent.” Whatever ratio you choose, apply it to every applicant in the same way.

When reviewing income:

• Consider all legal sources of income equally—paychecks, self-employment, social security, disability benefits, child support, alimony, housing vouchers, etc.
• Request documentation (pay stubs, bank statements, award letters, or tax returns for self-employed applicants).
• Use a consistent timeframe (e.g., last 30–60 days) for all applicants.

Understanding Credit Reports in Tenant Screening

A credit report can show:

• Payment history (on-time, late, collections)
• Outstanding debts and utilization
• Public records (judgments, bankruptcies where available)

Instead of focusing solely on a credit score, consider patterns:

• Are late payments recent or several years ago?
• Is there a history of unpaid rent or landlord collections?
• Did the applicant have a one-time hardship (e.g., medical emergency) followed by improvement?

Adverse Action and Fair Credit Reporting Act (FCRA)

If you deny an application or require a higher deposit because of information from a credit report or screening service, you must send an Adverse Action Notice under the Fair Credit Reporting Act. This notice typically includes:

• The name and contact information of the reporting agency
• A statement that the agency did not make the decision
• Information on the applicant’s right to obtain a free copy of the report
• Instructions for disputing inaccurate information

Criminal Background Checks and Fair Housing

Criminal background checks are one of the most sensitive parts of screening. Handled poorly, they can lead to discrimination claims, especially racial discrimination, because some groups are disproportionately affected by the criminal justice system.

HUD Guidance on Criminal History

The U.S. Department of Housing and Urban Development (HUD) has issued guidance that:

• Warns against blanket bans like “no one with any criminal record”
• Encourages landlords to evaluate:
  • The nature and severity of the offense
  • How long ago it occurred
  • Whether it is relevant to safety or property risk

Some jurisdictions also restrict how and when you can use criminal history at all. You may need to:

• Review rental and income qualifications before checking criminal history
• Limit how far back you look
• Provide applicants an opportunity to explain or submit mitigating evidence

Creating a Reasonable Criminal History Policy

A balanced policy might:

• Exclude only specific, serious offenses (e.g., violent felonies, arson, major property crimes) within a certain time period
• Ignore arrests that did not result in conviction
• Consider rehabilitation, time passed, and positive rental history since the incident

Document your policy and apply it to every applicant identically.

Handling Disability and Reasonable Accommodations

Fair housing laws provide strong protections for people with disabilities. As a housing provider, you have additional duties when an applicant has a disability or requests reasonable accommodations.

What Is a Reasonable Accommodation?

A reasonable accommodation is a change to rules, policies, or practices that allows a person with a disability to use and enjoy the housing on an equal basis. Common examples include:

• Allowing a service animal or emotional support animal in a no-pets building
• Assigning an accessible parking space near the unit
• Allowing a rent payment date adjustment tied to disability income schedules (where feasible)

What Is a Reasonable Modification?

A reasonable modification is a change to the physical structure. Examples include:

• Installing grab bars in a bathroom
• Adding a ramp at an entrance
• Lowering countertops or peepholes

Depending on the type of housing and funding, the cost of modifications may be paid by the tenant or required of the housing provider. Always review federal, state, and local rules carefully.

Questions You May and May Not Ask About Disability

You may not ask an applicant:

• If they have a disability or ask for medical details
• To disclose diagnosis, treatment, or medical records

If an applicant or tenant requests an accommodation and the disability or need is not obvious, you may ask for limited verification that:

• The person has a disability as defined by fair housing laws
• The requested accommodation is related to that disability

This verification can often come from healthcare providers, social workers, or other qualified professionals, depending on local law.

A Step-by-Step Tenant Screening Process

Putting everything together, a compliant, fair screening process usually follows a clear sequence:

Step 1: Advertise the Rental Fairly

• Use neutral, inclusive language (e.g., “family-friendly” can be okay; “adults only” is not)
• Focus on the property features and terms, not the type of tenant you want
• Post the same rent and terms across all platforms

Step 2: Provide Written Criteria Up Front

• Offer a clear, written list of your screening standards with every application
• Ensure every applicant knows how you will evaluate them
• Apply the criteria exactly as written—no exceptions based on personal preference

Step 3: Collect and Review Applications in Order

• Time-stamp each application you receive
• Review them in the order received, or use a documented batch review system
• Avoid skipping or “holding” applications based on assumptions about the applicant

Step 4: Run Background, Credit, and Income Checks

• Obtain written consent before running any checks
• Use reputable tenant screening services and follow FCRA rules
• Keep screening reports confidential and securely stored

Step 5: Make a Decision Based on Your Written Policy

• Compare each applicant to your criteria, not to each other
• If multiple applicants meet your standards, use a fair system (e.g., first qualified, lottery where required by law)
• Document your decision and the reasons (e.g., “income below minimum standard”)

Step 6: Communicate Approvals and Denials Properly

• Send approval with a clear deadline to sign the lease and pay the deposit
• For denials or conditional approvals based on reports, send Adverse Action Notices as required
• Be professional and concise; avoid unnecessary explanations that could be misinterpreted

Common Tenant Screening Mistakes That Create Legal Risk

Many fair housing complaints arise not from bad intentions, but from lack of knowledge or inconsistent practices. Watch out for these pitfalls:

Using Different Criteria for Different Applicants

This is one of the biggest red flags. Examples include:

• Requiring a higher income for families with children than for single applicants
• Turning away voucher holders even though they meet other criteria (where source-of-income is protected)
• Waiving credit requirements for one applicant but not another with a similar profile

“No Kids,” “Singles Only,” or Similar Policies

Familial status is a protected class. You generally cannot:

• Refuse to rent to families with children
• Limit families to certain floors or parts of a building
• Advertise “ideal for singles” in a way that discourages families

Relying on Gut Feelings or Personal Impressions

Personal impressions are subjective and often influenced by unconscious bias. Base decisions on documented criteria instead. If your “gut feeling” conflicts with the objective data, it’s a sign to pause and review.

Asking Inappropriate Questions in Conversation

Even if your application form is clean, casual conversation can create problems. Avoid questions like:

• “Where are your parents from originally?”
• “Do you plan on having more children?”
• “What church do you attend?”

Friendly conversation is fine, but stay away from topics tied to protected classes.

Balancing Risk Management and Fair Housing Compliance

Being a landlord involves balancing risk: you want reliable tenants, but you must also follow the law and treat everyone fairly. The good news is that risk management and fairness often go hand in hand.

Risk-Reducing Practices That Support Fair Housing

• Standardized forms: Use the same rental application, screening criteria, and lease template for all units of the same type.
• Written procedures: Document how you process applications and stick to the process.
• Training: Ensure anyone who interacts with applicants understands basic fair housing rules.
• Record-keeping: Keep copies of applications, screening results, and decision notes for a reasonable period.

When in Doubt, Seek Professional Support

If you’re unsure about a tricky situation—such as unusual accommodations, criminal history questions, or local source-of-income rules—consult with a qualified attorney or a professional property management company. They can help you design and implement a compliant system.

How Professional Movers Fit into a Positive Tenant Experience

While tenant screening focuses on who moves into your property, professional moving services impact how smoothly they move in. A well-managed move sets the tone for the entire tenancy and helps protect your property from accidental damage during move-in and move-out.

Encouraging or recommending trusted movers can:

• Reduce dings, scrapes, and damage to walls, elevators, and common areas
• Help new tenants arrive less stressed and more organized
• Shorten move-in timelines and minimize disruption for neighbors

If you’re looking to support your tenants with a smoother, more professional move, consider partnering with a reputable moving company. For reliable, friendly, and efficient moving services you can recommend to your renters, visit United Local Movers and explore how they can make every move-in and move-out easier for everyone involved.

Practical Tips to Strengthen Your Tenant Screening Today

Even small changes can make your process safer, fairer, and more efficient.

Immediate Improvements You Can Implement

• Create or update your written criteria: Ensure they’re specific, objective, and aligned with fair housing laws.
• Standardize your advertising: Remove language that could be seen as excluding certain groups.
• Review your application form: Eliminate any questions that touch on protected classes.
• Adopt a consistent application order system: First-come, first-qualified is common and easy to document.
• Train anyone who shows units: Make sure they know what they can and cannot say.

Long-Term Best Practices

• Schedule periodic legal reviews of your criteria and documents
• Stay updated on state and local changes, especially regarding criminal history and source of income
• Invest in trusted screening tools and services that follow FCRA rules
• Build a network of professionals—attorneys, property managers, and movers—to support smooth tenancies

Conclusion: Fair, Legal Tenant Screening Protects Everyone

Tenant screening and fair housing are deeply connected. A strong screening process is not about finding the “perfect” tenant—it’s about using clear, legal, and consistent standards to choose qualified renters while respecting everyone’s rights. By understanding Fair Housing basics, documenting your criteria, and treating each applicant the same way, you reduce risk, build trust, and create a more stable rental business.

When you combine responsible screening with professional support—like reputable moving services—you lay the foundation for longer, better tenancies and fewer headaches for both you and your residents.