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Real Estate News and Advice |
October 13, 2008 |
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Rejecting Tenant Applications
by Kate Kemp
You've done the background check on your new tenant and you see it's a no-go. As long as the reason isn't discriminatory (rejecting a tenant due to their race, religion, national origin, ancestry, age, sexual preference, sex or disability) you'll be okay, right? Not necessarily. Patty Lang, an Associate Broker/Property Manager for Ambrose & Shoemaker Rental & Property Management Services in Corning, NY gives Landlord's a few pointers. “In order to stay out of trouble with Fair Housing, it is important to set standards for evaluating applications. The standards must be legal and they must be applied to all applications. One of the biggest things we are judged on is that our standards are uniformly applied and that the unit is rented to the 'First Qualified Applicant.' The important thing is that people must keep good records of how they apply the rules to all potential tenants equally." If you simply tell a tenant “Your application has been rejected.” with nothing to back up the reasons for your decision, the tenant could then draw a number of conclusions:
This might not be what you intended at all... but unless you have proof to back you up otherwise, your rejected applicant may be able to make it seem that way. To avoid any sticky situations with false accusations, Ms. Lang advises you accompany each application with a cover letter explaining to the tenant how you will evaluate their application. The following is the letter she created for her tenants:
We hope that you will find a property that meets all your needs. For your convenience, the following is a brief overview of the general guidelines used to process an application.
No person shall be denied the right to rent one of our properties based on applicant's race, color, religion, national origin, sex, age, disability, marital status or familial status.
By providing tenants with the above information before they even fill out the application, they will know exactly what you're looking for, and what possible reasons their application may have been rejected. In the event that you do choose to reject an application, you should be prepared to provide the applicant with a written documentation about the reasons why. For a sample of a rejection letter along with more details about rejecting applicants, visit Landlord.com. Published: August 29, 2000 Use of this article without permission is a violation of federal copyright laws. Related Articles: |
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