How to Screen a Tenant Legally Without Discriminating

Why Tenant Screening Matters

Finding the right tenant is one of the most important things a landlord does. A good tenant pays on time, takes care of the property, and follows the lease. A bad tenant can cost you thousands in unpaid rent, property damage, and eviction costs.

But screening must be done legally. The Fair Housing Act prohibits discrimination based on protected classes, and violations can result in penalties up to $16,000 for a first offense, plus actual damages and attorney's fees.

Fair Housing Protected Classes

Under federal law, you cannot discriminate based on:

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

Texas also adds additional protections under state law. Many cities (Austin, Dallas, Houston) have local ordinances adding more protected classes.

What You CAN Legally Screen For

These criteria are legal and recommended for every applicant:

1. Income and Employment

• Income requirement: Most landlords require gross monthly income of 2.5-3x the monthly rent.
• Employment verification: Call the employer or request recent pay stubs (3-4 months).
• Self-employed applicants: Request 2 years of tax returns or bank statements.

2. Credit History

• Pull a credit report (with the applicant's written permission).
• Look for evictions, collections, and bankruptcies — not just the credit score.
• Set a consistent minimum credit score (commonly 600+).

3. Rental History

• Contact previous landlords for references.
• Ask about payment history, property care, and lease compliance.
• Look for prior evictions in court records.

4. Criminal History (With Restrictions)

• You can consider criminal history, but you cannot have a blanket ban — you must evaluate each case individually.
• Some cities (Austin) restrict how criminal history can be used.

5. References

• Personal and professional references can help verify character and reliability.

What You CANNOT Ask or Consider

• "Are you planning to have children?" — familial status discrimination.
• "What church do you attend?" — religion discrimination.
• "Where are you from?" — national origin discrimination (asking where someone was born or their ancestry).
• "Do you have a disability?" — disability discrimination (you can ask if they need reasonable accommodations, but not about the disability itself).
• Any question about the protected classes above.

Best Practices for Legal Screening

1. Have a Written Screening Policy

Document your criteria in advance: minimum credit score, income requirement, rental history requirements. Apply these criteria consistently to every applicant. Inconsistent application is a major red flag for discrimination claims.

2. Use a Standard Application Form

Use the same application form for everyone. Include:

• Name and contact information
• Social Security number (for credit check)
• Current and previous addresses
• Employment information and income
• References
• Written consent for credit and background checks

3. Keep Records

Keep all applications, screening results, and your decision rationale for at least 2 years. If a rejected applicant files a discrimination complaint, you'll need to show your decision was based on legitimate, non-discriminatory criteria.

4. Document Your Reasoning

When rejecting an applicant, note the specific reason: "Credit score 540, below 600 minimum" or "Income insufficient — monthly income $1,800, less than 2.5x rent of $900." Never write "bad vibe" or subjective impressions.

5. Use Professional Screening Services

Third-party screening services (TransUnion SmartMove, Experian, etc.) provide standardized reports and reduce your legal risk.

Handling Reasonable Accommodations

If an applicant with a disability requests a reasonable accommodation (e.g., a reserved parking space near their unit, or permission to have an emotional support animal despite a no-pets policy), you must consider the request. You can ask for verification of the disability-related need from a medical professional, but you cannot ask about the specific disability.

The Cost of Discrimination

Fair housing violations are expensive:

• HUD penalties: Up to $16,000 for a first violation, $65,000 for subsequent ones.
• Actual damages: Compensatory and punitive damages.
• Attorney's fees: You may have to pay the plaintiff's attorney's fees.
• Reputational damage: A fair housing complaint is public record.

How RentTrust Helps

RentTrust allows landlords to verify a tenant's rental history, including payment records and prior landlord reviews. This gives you verified, objective data to support your screening decisions — reducing both risk and bias. Create a free account to start accessing verified tenant histories.

Legal Disclaimer: This article provides general information about fair housing law and tenant screening and is not legal advice. Consult a qualified fair housing attorney to review your screening policies.