When is it Legal to Refuse to Rent? 

Legal Rules on Housing Discrimination

As a landlord or property management company, choosing the right tenants is vital. A good tenant pays rent on time, minimizes property damage, and shows respect to others on the premises. On the other hand, bad tenants do the opposite of good tenants, compromising the quality of your space and bottom line. It is advisable to set up criteria for evaluating potential tenants, ensuring a higher return on investment. Let’s look at factors to avoid when vetting tenants to avoid legal action and costly fines.

Federal Fair Housing Laws

Federal housing laws dictate landlords cannot deny housing based on color, race, religion, national origin, sex, disability, and family status. These rules apply in every state, hence the need to consult a professional property management company before renting.

Housing Laws

Unlike federal laws, housing rules vary from one place to another. However, they rarely allow discrimination based on sexual orientation, marital status, and gender identity. This means that landlords and property managers cannot refuse tenancy based on whether someone is single or married. Also, refusing to rent to a tenant because of how they choose to identify can lead to legal issues.

Local Housing Laws

Local housing laws usually follow federal and state laws, but also prohibit property owners or managers from using the tenant’s source of income as a reason for denying tenancy. However, landlords can use the amount of their income to determine viability.

Can You Legally Refuse to Rent?

While the list of factors landlords should not consider when renting out a property is long, there are some they can still consider.

Ability to Pay

The primary goal of leasing out a space is to make money. With that in mind, tenants should be able to pay rent to ensure a higher ROI. If you are not equipped or experienced in vetting tenants properly, hire a property management company to help. Professionals can conduct an in-depth background check, ensuring you lease to people with the financial ability to pay rent on time.

Criminal Background Check

Another crucial factor that can cause landlords to deny tenancy is a criminal history. If a prospective tenant has a violent past or a history of criminal activities, you don’t want them on your property. However, some areas have laws against discriminating people with criminal histories, so consult with a lawyer to ensure you comply with the regulations in your area.

The reasons to deny rent to prospective tenants vary from person to person, hence the need to work with a professional. Contact us at 3 Options Realty and schedule a consultation with our experts to find the best tenants and grow your investment.