How to Raise Tenant Standards That Don’t Violate Fair Housing Laws
If you’re a rental property owner who wants to increase the quality of your tenants, you may be wondering what steps you can take. It helps to weed out applicants who are likely to be unreliable in terms of rent payments. It’s important to remember that you cannot set requirements that unfairly discriminate against certain groups of people, so any changes you make to your tenant selection process must be within the bounds of fair housing law. We will outline a few tactics that you can use to improve your tenant pool while still staying within the law.
1. Require A Credit Check
One way to get a better sense of whether or not an applicant is likely to be responsible tenant is to require them to undergo a credit check. It will give you information about their credit history and debt-to-income ratio. Applicants with a poor credit score or high debt levels may be more likely to miss rent payments or cause other damage to your property.
2. Require A Lease Application and A Security Deposit
Requiring applicants to complete a lease application can help you get a better sense of their qualifications for tenancy. It will allow you to see if they have a history of evictions or outstanding debts, for example. Additionally, requiring a security deposit from all tenants can help protect you from potential damage or missed rent payments.
3. Using a Property Management Company to Handle Applications
Using a property management company to handle your tenant applications can help you avoid any potential discrimination lawsuits. Property management companies are experienced at screening tenants and know how to do so that they don’t violate fair housing laws.
There are several ways to improve your tenant pool while still staying within the bounds of fair housing law. By requiring credit checks, references, and a lease application, you can better understand an applicant’s qualifications for tenancy. Additionally, using a property management company can help you avoid any potential discrimination lawsuits.