How to minimize risk of being accused of discrimination

[Christopher Sze]

How do you avoid being accused discrimination when screening and turning down applicants for your rental? What are the best practices and methods to protect yourself as a landlord? Specifically in upstate New York.

[Wesley W.]

It's good practice, I believe, to not specify WHY they were turned down in the first place. "Less is more." The exception to this guideline would be if you used a credit report that yielded negative info that caused you to pass on the applicant. In that case, the FCRA requires what is known as an "adverse action letter."

Have very clear qualification criteria written down that you can apply to each prospect.

Another thing I do is I have language on my application so people are aware that we are choosing the BEST applicant from those that applied.  Here it is (in part):

ONLY COMPLETED APPLICATIONS WILL BE PROCESSED

The application is for qualification purposes only. Applicant understands that landlord may accept multiple applications for this rental unit and retains sole discretion to select the most qualified applicant. APPLICANT REPRESENTS THAT THE INFORMATION SET FORTH ON THIS APPLICATION IS TRUE AND COMPLETE. Material misrepresentations or omissions on the Application will constitute a default under the Lease or Rental Agreement between the parties. This application may not be considered eligible for evaluation if it contains blank spaces or incomplete information.

ONLY CLEAN & RESPONSIBLE PEOPLE WHO PAY RENT ON TIME MAY APPLY