MANAGEMENT

How to Screen Tenants Without Getting Sued

Updated March 2026

Write Criteria Before You Have a Candidate

The fastest path to a fair housing lawsuit is making decisions on feelings instead of consistent standards. Before listing, write minimums: credit score 620+, income 3x rent, no evictions in 5 years, no felonies, positive landlord references. Apply equally to every applicant. Reject one person for a 590 score? Must reject all with 590. Consistency is your legal shield.

The Five Checks

Run all five on everyone: credit report (tenant screening service, not the score they show you), criminal background (county + national), eviction history (county court records), income verification (two recent pay stubs + call employer), previous landlord reference (not current — the previous landlord has no incentive to lie). Costs \$75-125 per applicant through RentPrep or TransUnion SmartMove. Charge an application fee.

What You Cannot Consider

Fair housing prohibits discrimination on race, color, national origin, religion, sex, familial status, or disability. Many cities add source of income, sexual orientation, gender identity, and veteran status. You can't ask about kids, church, pregnancy, or country of origin. Violations mean \$16,000-65,000 in federal penalties per incident.

Red Flags Beyond the Paper

Do they ask about breaking the lease before signing? Pressure for move-in before screening completes? Sob story with an offer of extra rent? Refuse to let you contact their current landlord? None disqualify alone, but patterns tell a story. Trust your criteria first, gut second.