Screen as hard as you want. Just know the rules.
The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, and disability. It doesn't prevent screening. It requires screening be applied consistently regardless of protected class membership. The Fair Credit Reporting Act governs credit reports and background checks, requiring written consent, proper data handling, and adverse action notices when denying based on report information.
Every state layers additional rules: application fee caps, security deposit limits, required disclosures, criminal history restrictions, source of income protections, eviction record limitations, and additional protected classes. A process legal in Texas may violate the law in California. Research your specific jurisdiction thoroughly.
The trend is toward more restrictions. HUD guidance discourages blanket criminal history policies. Many cities have ban-the-box ordinances. Several jurisdictions require individualized assessment considering offense nature, recency, and relevance to tenancy. The safest approach: don't ask on the application, conduct background checks later, evaluate findings individually using documented criteria, and allow applicants to provide context.
When denying based on consumer report information, FCRA requires notice including the screening company's name, a statement they didn't make the decision, and the applicant's right to a free report copy. Use the templates your screening service provides. Skipping this turns a defensible denial into a legal problem.
Legal compliance is the foundation. Build your application, evaluation, and decision process with legal requirements in mind from the start. For comprehensive compliance guidance, explore this landlord resource.
Screening laws change. New states adopt source of income protections. Cities pass ban-the-box ordinances. Review your criteria annually, check for new regulations, and adjust accordingly. A local landlord association or real estate law newsletter keeps you current.