How to screen tenants fairly and legally

Decide what you require before you advertise, write it down, and apply it to every applicant the same way. Common criteria include income (often about three times the rent), rental history, and a credit and background check. Written, consistent criteria are the best protection against unfair treatment and claims of discrimination.

Federal law forbids treating applicants differently because of race, color, religion, sex (including sexual orientation and gender identity), national origin, familial status or disability. Many states and cities protect more groups, such as source of income (for example housing vouchers), age or marital status. Learn the rules where your rental is.

• Ask every applicant the same questions.
• Make reasonable accommodations for people with disabilities, such as allowing an assistance animal in a no-pets home.
• Never steer people toward or away from a home based on who they are.

1. Take a complete application, online if you can, so every applicant gives the same information.
2. Verify income with pay stubs, an offer letter or bank statements.
3. Run a credit and background check through a tenant screening company, with the applicant's written consent.
4. Call previous landlords: did they pay on time, and would they rent to them again?
5. Decide using your written criteria and keep notes on why.

If you deny an application, ask for a larger deposit or require a co-signer because of something in a credit or background report, federal law (the Fair Credit Reporting Act) requires an adverse action notice. It names the screening company, explains the applicant's right to a free copy of the report and to dispute errors, and says the screening company did not make the decision. Most screening companies provide a template.

Keep applications, your criteria, screening results and your reasons for each decision, stored securely because they contain personal information. Check how long your state expects you to keep them.