Often landlords are faced with the dilemma of what questions to ask potential tenants when they are trying to rent out a property. They must be aware of how to legally screen tenants so that they don’t open themselves up to a lawsuit for discrimination. Can landlords legally screen their tenants? In general, yes, there are questions you can ask that are legal and that give you the information you need to make a good and fair business decision. There are also questions that you CANNOT ask or else you open yourself up to legal action.
The law known as the Fair Housing Act of 1968 was enacted so that landlords could not discriminate when it came time to rent out their properties. This law grew out of the civil rights movement and prevents anyone from being discriminated against based on race, color, religion, sex, national origin, disability, or familial status. It now also includes additional protected classes such as marital status and sexual orientation. Everyone should have the right to rent or purchase a home, and this federal law assures consumers that this will happen.
Here is a short list of what you CAN legally ask in a tenant screening:
- One of your first questions should be about the applicant’s income. Asking about their monthly income is a good indicator of whether or not they can afford your property (a good rule of thumb is two to three times the amount of rent charged). If they do not make enough money to qualify, you need to know this upfront.
- You can also legally ask them if they have ever been evicted or broken a rental agreement. This information comes in handy because it will give you an idea of what kind of tenant they will be. Talking to their former landlords will also give you a good idea of whether or not they are a good tenant.
- If you choose to run credit checks and use this information in your decision, you must run credit checks on EVERY applicant. Then and only then is it legal, otherwise it’s another form of discrimination. The same rule applies to checking references.
- Another fair question is if they have ever been convicted of a crime that relates to their being a good tenant. For example, if they have been convicted of a violent crime that would indicate that they may be a danger to other residents. The crime must relate to their potential as a tenant though, nothing else.
- You can definitely ask a potential tenant if they have pets. If they do, it’s up to you to communicate your policies on accepting or not accepting pets (you have a legal right to not accept pets at all – except service animals). If you do accept them, the pet deposit and rules must be the same for everyone.
- One question that many landlords neglect to ask is how many people will be living in the unit. There are legal limits as to how many people can occupy how many bedrooms, so this is definitely a legal and necessary question. (Check with your state and county laws to see what the legal ratio of occupants to bedrooms is.)
Here is what you CANNOT legally ask in a tenant screening:
- Any question about race or religion is off-limits. Federal fair housing laws prevent you from renting or not renting based on a certain class of people, so anything that even hints at a question about race or religion cannot be asked.
- You cannot ask if a person has been arrested. A simple background check will indicate if a person has been convicted, but you cannot use this or any other information to deny the person unless it directly relates to their ability to be a good tenant.
- You cannot ask if a potential tenant has a service animal because you cannot discriminate based on disability. Even if you have a no-pet policy, you must accept service animals if they have the correct certifications.
- You cannot ask how many children the person has. This could be discriminatory to their familial status, which is illegal according to the fair housing laws. Same goes for questions regarding marital status.
- Do not ask if the potential tenant needs to know where the local church, synagogue, or mosque is located. Asking this will set you up for a discrimination based on religion lawsuit so it’s better not to even bring up what religious groups are located near your property.
If you are hesitant to screen your own tenants because of the legalities involved, a great choice would be to hire a company such as Landlord Station to do it for you. No tenant screening service is fail proof, but Landlord Station’s tenant screening will minimize your legal liability in the screening process. They can also assure your potential tenants that their personal and financial information will remain safe and secure – handing over one’s personal and financial information is never easy, so having a company that you and they can both trust is paramount to successfully finding the right tenant.
