Landlords often want an answer to the question, “Is a rental application legally binding?” before they have a prospective tenant apply to rent their property.
As a landlord, you likely desire to verify a prospective tenant’s credit and other background information.
And, you probably want to go through the entire rental process in a non-discriminatory and complete way, adhering to federal and state laws while mitigating risk.
These shared concerns prompt property owners to wonder about the steps to help a landlord legally use a rental application to screen potential renters.
A rental application is a release form that provides the landlord with information and permission to conduct a background check on an applicant.
What is a Rental Application?
Simply put, it is a tool that landlords use to evaluate and consider a prospective tenant for a rental opportunity.
There may be dozens of interested parties for any room, apartment, or house for rent, and a landlord needs a way to determine which of them will be the most desirable tenant.
A lease application ensures that the landlord is fair to all applicants and adheres to the federal Fair Housing Act (FHA) requirements as well as state and local fair housing laws, prohibiting discriminatory housing practices.
Prospective tenants have the right to sue a landlord if they believe they were denied a rental because of their race, gender, or religion. So, an application helps protect landlords by showing that they consider all applicants equally.
At the same time, a landlord needs to ensure prospective tenants can pay their rent in full and on time and treat the property well.
What Should a Basic Rental Application Contain?
The basic rental application form should include enough detail for the landlord to make an informed decision about the tenant.
It should include spaces for the prospective tenant’s contact information, previous rental history, and employment history.
There are some questions that a landlord may not include in a lease application. The FHA prohibits discrimination based on race, gender, religion, and other protected categories.
So, an application may not contain questions that inquire about:
- An applicant’s race or nationality
- The applicant’s place of birth
- An applicant’s religion
- How many children an applicant has
- An applicant’s disabilities
Additionally, almost all states have adopted laws that expand on the Fair Housing Act to prohibit discrimination based on gender identity or sexual orientation.
Use our rental application form to help craft a basic application that will provide the information needed to screen prospective tenants thoroughly.
A properly drafted template also helps you check references quickly whenever you have a rental to fill.
Can a Landlord Deny a Rental Application?
Landlords can deny an application if the prospective tenant does not meet their requirements.
They may also reject an applicant who has failed to complete the application or pay any required application fee.
A landlord may legally deny an application if an applicant:
- Has a poor credit rating
- Has insufficient income to cover the rent
- Has a history of being evicted within certain limitations
- Has an identity and history that do not match the application
- Smokes or has pets, if not allowed in the rental property
- Provides false information
- Applies for a senior community (i.e., a “55 and older” community) and is too young or has custody of minor children
In some jurisdictions, a landlord may reject applicants with a criminal history, while others prohibit this as a legitimate cause.
If landlords refuse a prospective tenant, they should send a rental application denial letter as soon as possible so the applicant can continue looking for a new rental.
Use our rental application builder to help craft a basic application that will give you the information to screen prospective tenants thoroughly and approve or deny applications based on legal criteria.
Rental Application Frequently Asked Questions (FAQs)
Landlords should include the following information:What should be on a rental application?
A guarantor is also known as a co-signer. Applicants often need a guarantor if they have poor credit or no credit history. Guarantors are co-applicants alongside the applicant when they provide information on a lease application. A guarantor typically needs to provide: A guarantor will sign the lease along with the primary applicant if that applicant is accepted. Guarantors are also responsible for the rent if the primary applicant cannot pay. Being a guarantor is like being a roommate or a co-tenant, and it comes with the same responsibilities.What does a guarantor need to provide on a rental application?
Before landlords can run a background check on a prospective tenant, they need to get written consent from the applicant. A basic application should contain language that states the landlord will use that information to check the applicant’s criminal background and credit history. [lt_tip] Many reputable background search agencies and private investigation services exist. There are also many disreputable ones, so a landlord should research a company before entrusting sensitive information to a third party.[/lt_tip] Background checks typically cost $50 or more, which is why landlords charge fees for the rental application. Landlords should allow for this cost when calculating the cost of the application. Keep in mind that some states prohibit or limit the amount landlords can charge a tenant for credit and background checks. For instance, New York limits the fee to the actual credit and background check cost, but no more than $20.How to run a tenant screening background check?
