10 Legal Reasons to Deny a Tenant

Renting out property comes with both rights and responsibilities for landlords. While fair housing laws prohibit discrimination based on race, religion, national origin, sex, disability, or familial status, landlords are legally allowed to deny rental applications for valid, non-discriminatory reasons. Here are 10 legal reasons to deny a tenant:

1. Poor Credit History

A credit check reveals how well a tenant manages debt. If a prospective renter has a low credit score, multiple late payments, or accounts in collections, a landlord may reasonably worry about their ability to pay rent on time and deny their application.

2. Insufficient Income

Most landlords require tenants to earn at least two to three times the monthly rent. If an applicant cannot demonstrate adequate income through pay stubs, tax returns, or employment verification, it’s legal to deny them based on the risk of rent default.

3. Criminal Background

While landlords must be cautious about blanket policies that exclude all individuals with criminal records, it is legal to deny tenants whose convictions pose a legitimate safety risk. For instance, recent convictions for violent crimes, drug trafficking, or property damage may be grounds for denial.

4. Prior Evictions

A history of evictions, especially those involving non-payment of rent or property damage, is a red flag. Landlords can legally reject applicants if public records or tenant screening reports show they were previously evicted for lease violations.

Discover: What Questions Can California Landlords Legally Ask Rental Applicants?

5. Incomplete Application

A landlord is not obligated to accept an application that is missing key information, such as references, employment details, or identification. Incomplete or false applications raise concerns about transparency and reliability.

6. Negative References

Landlords often contact previous landlords or employers for reference checks. If past landlords report frequent late payments, property damage, or disruptive behavior, this can be a valid basis to deny the applicant.

7. Too Many Occupants

Local housing codes and the Fair Housing Act allow landlords to set reasonable occupancy limits based on the size of the unit. Denying an application because it exceeds these legal limits is acceptable for health and safety reasons.

8. Unverifiable Employment

If a tenant cannot provide proof of employment or if the landlord cannot verify it through direct contact, this uncertainty could justify denying the application. Stable employment is often essential for financial reliability.

9. Pets Not Allowed

If a landlord has a no-pet policy (excluding service animals or emotional support animals protected under fair housing laws), they can deny applicants who own unauthorized pets.

Read more: Can Landlords Deny Emotional Support Animals? Understanding Fair Housing Laws

10. Subletting or Misrepresentation

If a prospective tenant intends to sublet the unit without permission or has misrepresented their identity, income, or household composition, the landlord can legally reject their application due to trust and contractual concerns.

Conclusion

Landlords must apply their tenant screening criteria consistently to avoid accusations of discrimination. Having clear, documented, and legally sound rental policies ensures both compliance with the law and the protection of your property. Always stay informed about state and federal fair housing laws to make fair yet firm leasing decisions.

For legal help in California and your other needs, contact BERYS LAW on this page. We also offer courses on real estate investing, landlording, and templates right here!