How to Avoid Fair Housing Complaints During Tenant Selection

One of the most common fair housing complaints is alleged discrimination during the tenant-selection process. That’s why it’s imperative that landlords maintain a written list of factorsfor tenant selection that follow fair housing laws and use those same criteria with every applicant. The applicant’s previous rental history, criminal history, current income, and credit history are all examples of acceptable criteria. You can use the sample Texas REALTORS? Model Tenant Selection Criteria to help your landlord clients draft their own requirements or to advise them on editing their current tenant-selection criteria.

When Can an Applicant Be Rejected?

Since property managers will likely be assisting landlord clients with vetting applicants, you should know the factors the landlord wishes to check per the landlord’s written tenant selection criteria. If an applicant does not meet one or more of the factors, the applicant may be rejected. Additionally, the Texas Property Code states that failure to provide accurate or complete information on an application can result in an applicant being rejected as a tenant.

How Does the Applicant Know the Criteria?

At the time of application, a landlord or the landlord’s property manager must make available to the applicant a printed notice of the landlord’s tenant-selection criteria, outlining reasons why the rental application may be denied.

Applicants must also sign an acknowledgement, indicating that the landlord made the printed criteria available. If an acknowledgment is not signed, a court would presume the notice was not provided unless proven otherwise. If the landlord rejects an applicant without making the printed criteria available, the landlord must return the application fee in addition to any application deposit.

The acknowledgment must include a statement similar to the following: “Signing this acknowledgement indicates that you have had the opportunity to review the landlord’s tenant-selection criteria. The tenant-selection criteria may include factors such as criminal history, credit history, current income, and rental history. If you do not meet the selection criteria, or if you provide inaccurate or incomplete information, your application may be rejected and your application fee will not be refunded.”

What’s an Easy Way to Comply?

The good news is that the acknowledgement may be a part of the rental application if the notice is underlined or in bold print. The Texas REALTORS? Residential Lease Application (TXR 2003) contains the necessary language and a place for the applicant’s signature to ensure that all required steps have been completed.