Even in states that say you can't deny based on someone's immigration status, still let you have criteria of a credit score of XXX, from my understanding.  

Plus, it gives you a reason to deny - if they lie on the application, which gets revealed by the credit report.

And unless you are doing something scary horrendous as far as discrimination is concerned (which would not include denying someone for claiming they needed two service dogs), worst case scenario is they ask you to work something out with the tenant.  

In this case I'd say, "I am however, denying you because you lied on your application and people who lie on their application are not protected by anti-discrimination laws - even if they have kids.  

I have a saying that when you find yourself "working" to make a tenant fit your criteria/needs - you need to stop and just deny them.  

Just tell them it appears it's just not a good fit for their needs, and now that they've told you they intend to let children play in an unfinished basement, that you can be liable for anything that happens, so you are denying them.Whenever it's this much work, just deny.  

If they sounded drunk or crazy or were screaming at their kids or calling me from a loud party, I made a note in a notebook as to why they were denied, and I didn't call them back.When I was ready, I'd sit down with my notebook and call them back in order received.  

That being said, if you're really that concerned and don't feel like having a confrontation you could always let him fill out an application and then deny him.

., their request can be denied on that basis, as well as the others already mentioned.So, it's not a slam dunk.

Side note:  Obtaining a judgment from small claims court would only be beneficial if the tenant has some sort of asset (i.e. owned a car/home/employment) that you could go after if they continue to deny responsibility.