reporting. Different states have their own credit reporting acts, so do your research and consult your attorney so you can back up your denial legally. Besides complying with the Fair Credit Reporting Act, you also want to ensure you’re in compliance with the Fair Housing Act in your rejections to avoid discrimination complaints and lawsuits. In addition to letting the person know why you’re rejecting their application, document the exact reasons for your records and protection, including which of your minimum qualification standards they failed to meet. Explain this all to the tenant, although you don’t have to go into every single detail in person. Save that for your notes. Don’t feel bad about rejecting an application. You can’t rent out your property to everyone. And remember, you’re the landlord; you own the property. As such, you have the right to set whatever terms and conditions you’re comfortable with, as long as they’re legal and reasonable and don’t violate any Fair Housing Act or Americans with Disabilities Act laws, or any other local or state laws that govern housing and rental practices. What happens if you deny a member of a protected class for a reason that has nothing to do with their class, but something else, such as income? For example, let’s say your required monthly rent is $2,000 and your minimum qualification standards indicate that all tenants must make three times that amount (so, $6,000/ month). If this is clear in your standards, in your application form, and in your lease, then you don’t need to worry about a Fair Housing complaint, even if they make one. In this situation, you haven’t violated any laws or shown any discrimination. Everyone—members of a protected class or not—must meet your minimum qualification standards in order to rent your property.
STEP 6: PREPARE AND SIGN THE LEASE
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