He asked how to apply and I told him we check criminal background and prior rental history.

But if they don't meet your criteria for some other reason (i.e. credit, criminal history, prior eviction, etc), then there is no more obligation to accept them as your tenant than there would be with any other non-Section 8 applicant.Was there something more to this rule that you found that I missed?

I put everything in writing and give prospective tenants a sheet with move in requirements, eligibility requirements, and credit and criminal history check requirements.

@Dion DePaoli  who was the guru in Denver that finally got criminally indicted for selling his system of note brokering.. 

It does not stop you from being sued or going to jail for criminal acts.

If they make enough money, are not a criminal, have no evictions and no money judgments, and have a verifiable rental history,  I would say that's about as good as you will find.  

That then becomes an unlawful foreclosure in attempting to secure collateral, that is a civil matter and can be criminal under state laws.

It is unanimous, don't quit your job.I will be very honest, if you quit a job because you were having disagreements with your boss or co-workers that were not actually criminal offences, I would not hire you, and neither would any hiring manager I know.

If I did an open house I wouldn't be able to watch everyone to make sure they aren't swiping things.I try to outline our guidelines on the phone: 3x monthly rent in income or personal guarantor with students, no criminal record, no evictions.  

I haven't been in that situation exactly, but had a tenant up and leave in the middle of his lease (inherited tenant who was mad that we weren't going to renew based on his income and criminal record).