• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Legal Templates

Legal Templates
  • Business Forms

    Business & Contracts

    All of our legal contracts and documents are drafted and regularly updated by licensed attorneys. Save your hard-earned money and time with Legal Templates.

    Top Business Forms

    Business Formation
    • Business Plan
    • LLC Operating Agreement
    • Articles of Incorporation
    • Corporate Bylaws
    • Buy-Sell Agreement
    Business Operations
    • Business Contract
    • Partnership Agreement
    • Non-Disclosure Agreement
    • Release of Liability
    • Letter of Intent
    Sales and Payments
    • Purchase Agreement
    • Sales Agreement
    • Invoice
    • Purchase Order
    • Business Purchase
    Employment and HR
    • Employment Contract
    • Employment Offer
    • Employment Verification
    • Freelance Contract
    • Non-Compete Agreement
    View All Business Forms
  • Real Estate Forms

    Real Estate

    All of our legal contracts and documents are drafted and regularly updated by licensed attorneys. Save your hard-earned money and time with Legal Templates.

    Top Real Estate Forms

    Landlords
    • Lease Agreement
    • Property Management
    • Eviction Notice
    • Late Rent Notice
    • Lease Termination
    Tenants
    • Room Rental
    • Sublease Agreement
    • Roommate Agreement
    • Notice to Vacate
    • Early Lease Termination
    Home Ownership
    • Real Estate Purchase Agreement
    • Mortgage Deed
    • Quitclaim Deed
    • Deed of Trust
    • Moving Checklist
    View all Real Estate Forms
  • Personal & Family Forms

    Personal and Family

    All of our legal contracts and documents are drafted and regularly updated by licensed attorneys. Save your hard-earned money and time with Legal Templates.

    Top Personal and Family Forms

    Estate Planning
    • Power of Attorney
    • Last Will & Testament
    • Living Will
    • Advance Directive
    • DNR Form
    Personal Finance
    • Bill of Sale
    • Loan Agreement
    • Purchase Agreement
    • Promissory Note
    • Sales Agreement
    Family Matters
    • Parenting Plan
    • Child Travel Consent
    • Divorce Agreement
    • Separation Agreement
    • Prenuptial Agreement
    Affidavits
    • General Affidavit
    • Gift Affidavit
    • Affidavit of Identity
    • Affidavit of Residence
    • Affidavit of Death
    View All Personal Forms
  • Support
    Resources
    • Business
    • Real Estate
    • Personal and Family
    • Financial
    • Estate Planning
    Support
    • About Us
    • Careers
    • Contact Us
    • All Legal Documents

    Monday - Friday | 9AM - 7PM EDT

    (855) 335-9779

  • Sign In
  • :email

Home Resources Landlords: Is a Rental Application Legally Binding?

Landlords: Is a Rental Application Legally Binding?

Jana Freer

Published January 28, 2022 | Written by Jana Freer

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 way that is non-discriminatory and complete, adhering to federal and state laws while mitigating risk.

These common concerns prompt property owners to wonder about the steps to help a landlord legally use a rental application to screen potential renters. 

TIP

When thinking about the legality of a rental application, it helps to know that this form is not a legally binding contract in the same way that a Lease Agreement is.

A rental application is a release form that provides the landlord with information and permission to conduct a background check on an applicant. 

Table of Contents
  • What is a Rental Application?
  • What Should a Basic Rental Application Contain?
  • Can a Landlord Deny a Rental Application?
  • Frequently Asked Questions (FAQs)

what is the key to a rental application - is it legally binding

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.

TIP

Even if landlords only have one person inquiring about a rental property, they should still obtain a completed application to properly screen the potential 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 considered all applicants equally.

At the same time, a landlord needs to be sure that prospective tenants can pay their rent in full and on time and will treat the property well. 

IMPORTANT

A rental application provides the information needed to carry out a background check and credit check on the prospective tenant and includes the necessary authorization for the landlord to conduct such reviews.

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. 

TIP

The landlord may also ask for references and miscellaneous questions regarding pets, additional vehicles, and other details.

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.

IMPORTANT

As an example, California fair housing law states that: It shall be unlawful (a) For the owner of any housing accommodation to discriminate against or harass any person because of the race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, veteran or military status, or genetic information of that person.

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. 

IMPORTANT

A denial letter can serve as proof of why the landlord rejected the applicant.

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.

Frequently Asked Questions (FAQs)

What should be on a rental application?

Landlords should include the following information:

  • Personal information. Name, current address, phone number, email, and other contact information
  • Prior rental history. The landlord should review how long applicants spent in each previous location, how much rent they paid, and any other pertinent information.
  • Employment history and income. This section aims to ensure the tenant can afford the rental. Typically, the landlord wants a tenant to earn three times the monthly rent.
  • References. The prospective tenant should provide the names of others that the landlord can contact to verify the tenant’s job and rental history. 
  • Application fee. If landlords charge a fee to process the application, they must clearly show this on the application.
  • Authorization and Signature. Because the landlord will use the application to check the prospective tenant’s credit and background, the application must contain permission from the prospective tenant to perform those checks. It also has to include a place for the tenant to sign, indicating their consent.

How do you reject a rental application?

The best way to reject an application is to send a denial letter by mail as soon as possible after the landlord denies the application. The rejection letter should provide the reasons for rejection and include contact information for further questions.

According to the Fair Credit Reporting Act (FCRA), landlords must provide a written notice if they take adverse action against an applicant based on information revealed in a consumer report.

What does a guarantor need to provide 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.

When guarantors provide information on a lease application, they are co-applicants alongside the applicant.

A guarantor typically needs to provide:

  • Identification
  • Two years of tax returns
  • Two months of bank statements
  • The two most recent paycheck stubs or income statements
  • A letter of reference from an employer verifying income

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.

How to run a tenant screening background check?

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]There are many reputable background search agencies and private investigation services. 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 often why landlords charge fees for the rental application. Landlords should allow for this cost when calculating the cost of the application.

Keep in mind, 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 cost of the credit and background check, but no more than $20.

 

 

Jana Freer

Jana Freer

Real Estate Editor

Jana Freer has held a California real estate license since 2006 and has written extensively about the U.S. real estate market since 2011.

Related Articles

  • Landlords: How to Run a Credit Check on a Tenant
  • Landlords: How Do I Get a Credit Report For a Rental Application?
  • Landlords: What Can You Not Ask on a Rental Application?
  • Why Ask For a Personal Financial Statement For a Commercial Lease?

In This Article

  • What is a Rental Application?
  • What Should a Basic Rental Application Contain?
  • Can a Landlord Deny a Rental Application?
  • Frequently Asked Questions (FAQs)

Legal Documents

  • All Legal Forms
  • Business Forms
  • Real Estate Forms
  • Personal and Family Forms

Popular Forms

  • Lease Agreements
  • Power of Attorney Forms
  • Eviction Notice
  • Living Will
  • Non-Disclosure Agreement

Resources

  • Legal Resources
  • Business
  • Real Estate
  • Personal & Family
  • Estate Planning
  • Financial
  • Covid-19 Resources

Company

  • Pricing
  • About Us
  • Careers
  • Contact Us
  • Partner With Us
  • Legal Dictionary

Users

  • Account
  • Terms of Use
  • Privacy Policy
  • Do Not Sell My Personal Information
McAfee - Together is power.
Trustpilot
BBB Accredited Business

(855) 335-9779, Monday-Friday, 9AM - 7PM EDT

Facebook Twitter LinkedIn

Copyright 2022 Legal Templates LLC. Legal Templates LLC is not a lawyer, or a law firm and does not engage in the practice of law. Legal Templates cannot and does not provide legal advice or legal representation. All information, software and services provided on the site are for informational purposes and self-help only and are not intended to be a substitute for a lawyer or professional legal advice. Use of this site is subject to our Terms of Use.

Thank you for downloading one of our free legal templates!

Would you leave us a review?

We hope you've found what you need and are able to avoid the time, costs, and stress associated with dealing with a lawyer.

A review would mean the world to us (it only takes about 15 seconds).

Please check your download folder for MS Word or open tabs for PDF so you can access your FREE Legal Template Sample

Thanks again, and good luck!

Leave My Review