Best way to inform someone they are not qualified to rent your property?

Question

Grateful for the collective wisdom here!

I am in the process of searching for my first tenant.  We've had a few applications but only one person meets minimum salary and credit score qualifications (meeting him tomorrow... fingers crossed!).  For those who have applied and don't meet criteria, what is the best way to communicate that you aren't moving forward with them that does not risk violating any fair housing rules?  They have not toured and I'd prefer to tell them that they don't qualify before they press me for a tour.  What would you do?

Thank you!

Charles J Sabo · Answer

Just a simple we are sorry, but we have chosen another applicant. We wish you luck in your rental search.

Matthew Becker · Answer

Income is not a protected class.  So there is very little to worry about.  Just tell them they don't make enough money but you should have known that before it was processed.  If they have excellent credit, great job history, great references and you met them and got a good feel.  I would generally rent to them even if they are a little bit short on rent to income.  There are a lot of people paying more than 33% now.  That is the market.  Most get side jobs or cash work to make ends meet but they don't put it down on app.

Chris B. · Answer

Verify and double verify with the applicant that the information they have provided is correct and that all income is verified and all adults will have a background check.  Many will provided exaggerated numbers or omit information up front.  Ask direct questions.  Politely and clearly, make it extra clear that all information will be verified including income prior to the signing of any lease.  Get your answers.  More often than not they fess up and kind of confirm they don't meet requirements if that is the case.  If they are poorly qualified, let them know now that they don't meet requirements.  Continue with a viewing, additional questions, get applications, run ALL checks, and then make a decision.

By being very clear about requirements, you will catch most early in the process and can let them know.

Patricia Steiner · Answer

'The property has been rented. Thank you for your interest.'  Don't apologize, don't explain how the 'chosen' tenant was more qualified than they were, wish them well in their search.

You're running a business and you've made a business decision.  You're done.  Congrats.

Emily Mohr · Answer

@Rod Hanks, this is great!! Thank you!!

Rod Hanks · Answer

It’s great that you’re being thoughtful about the process! To communicate that a candidate doesn’t meet your qualifications without violating fair housing rules, you can simply focus on the criteria rather than the individual. Here’s an example of what I've used if they don't qualify based on what's on application.

Subject: Status of Your Rental Application

Dear xxxx,

Thank you for your interest in the rental property at xxxxxx. After reviewing your application, we’ve determined that, unfortunately, we are unable to move forward with your application at this time, as it does not meet our established criteria for income and (other established criteria)

We appreciate the time you took to apply and wish you the best of luck in your continued search for a home.

Best regards,

This approach is neutral and objective, focusing strictly on the criteria, and avoids discussing any specifics about the applicant’s personal situation. By emphasizing your qualifications as the basis for your decision, you steer clear of potential issues related to discrimination.

Emily Mohr · Answer

@Chris B., thanks, this is helpful and very much like what I'm experiencing.  I have a few applications that clearly don't meet criteria, so I can tell those folks that.  The others are just pre-screened, not a full application so it's a bit harder to say "you don't meet criteria" because I don't actually have a verified income, credit history or background check - just what they've said in the prescreening questionnaire.  If you had prescreening info that makes it appear that there is no way they meet criteria do you still say the same thing?  "It appears you don't meet minimum criteria threshold" or something like that?

Chris B. · Answer

Sometimes you need to turn down applicants even though you have not picked someone to sign with yet.  I have one property in an area going down hill and this is common.  I might get 5 to 10 totally unqualified applicants before I get a good one.  The sub 550 credit score people come out of the woodwork to apply for this home.  They are likely applying for rentals en mass in the area and I'm not alone.  I list some of my requirements:  the minimum credit score, income requirement, and background check / eviction requirements in my ad.  They ignore it.

The simplest way is to tell them that they do not meet my criteria.  You can provide more details, but there is no legal requirement to do so. I don't. The more you say, the more they can challenge you if it comes to that.  If you tell them their credit score is too low (or some other reason) and somehow you obtained information that is inaccurate, then there is the potential to cause a legal problem.

Kristian Sexton · Answer

@Emily Mohr We use a form called Notice of Adverse Action. It is a legal form that allows you to select what criteria they did not meet on the application and what background software we use. Sometimes a simple denial causes more questions in my opinion.

Best way to inform someone they are not qualified to rent your property?

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