Tenant Screening Process Question - Discrimination?

[Brandon Mattingly]

This is my first investment property and I'm working on getting my first tenant!

I'm trying to develop a fair and efficient tenant screening process, but I'm a little worried if I'm dancing around any discrimination issues with unqualified leads.

⚙️Here is my process in the works:

1. Gather Leads from Listing Sites - FB Marketplace and Apartments.com currently
2. Reply to inquires with a Potential Tenant Questionnaire Google Form (Based on a BP Resource)
3. Follow up Call with leads that meet qualifications (Income, Credit, Eviction History etc) to schedule a showing.
4. Offer Application
5. Approve or Deny Application with documented reason

My main fear is keeping things fair and avoiding any unintentional violations of Fair Housing laws or partial practices.

❓My question is: Do I need to reach out to people who fill out the questionnaire who would not qualify? 

For example, if someone answers with a credit score of 500 (under my required 680), do I need to tell them that they would not qualify? It states clearly in lots of places (ad + questionnaire) that you must meet those requirements. It seems as if these people are self-disqualifying themselves or just not reading the requirements.

Is it wrong or illegal for me to tell them that IF they wanted to apply that they won't qualify? I know I can't stop them from applying, but can I say, "Based on what you've shared with me you won't qualify if you apply. So it'd be best to save your $40 (application fee) and not apply?" Seems like common sense, but I wasn't sure if that could be seen as me denying an application to someone.

Obviously, I'm not trying to be a jerk in all this. But I don't what to waste my time showing the property and sifting through applications that I know won't cut it.

Thanks in advance BP community!

🔥**Bonus Question: Someone asked me if I accept Section 8 today. I'm in Indiana and currently do not want to participate in the program (someday though!). Can I say "Sorry I don't accept Section 8 vouchers?" Seem like I could since Indiana does not protect "sources of income."