The Screening Tightrope

Tenant screening is essential for protecting your rental property, but it's also a legal minefield. The Fair Housing Act and California's Fair Employment and Housing Act prohibit discrimination, and the line between legitimate screening and illegal discrimination isn't always obvious.

Protected Classes

Federal Fair Housing Act protects:

Race and color

Religion

National origin

Sex (including gender identity and sexual orientation)

Familial status (families with children)

Disability

California adds:

Source of income (Section 8, etc.)

Marital status

Age

Ancestry

Genetic information

Legal Screening Criteria

You **CAN** consider:

Credit history and score

Rental history and references

Income verification (typically 2.5-3x rent)

Criminal history (with limitations—see below)

Employment verification

You **CANNOT** consider:

Whether applicants have children

Country of origin or immigration status

Religious practices

Disability status

Source of income (in California)

Criminal Background Screening: New Rules

California's AB 1008 and HUD guidance have changed criminal screening:

**Blanket "no felons" policies are illegal** because:

They have disparate impact on protected classes

They don't consider individual circumstances

Legal approach:

Consider only convictions, not arrests

Evaluate nature, severity, and recency of offense

Allow applicants to provide context

Consider rehabilitation evidence

Apply criteria consistently

Building a Compliant Screening Process

Step 1: Written Criteria

Document your requirements **before** receiving applications:

Minimum credit score (if any)

Income requirements

Rental history requirements

How criminal history will be evaluated

Step 2: Consistent Application

Apply the same criteria to every applicant. Never:

Change requirements mid-process

Apply stricter standards to certain applicants

Make exceptions for some but not others

Step 3: Documentation

For every application, document:

Criteria used

Information reviewed

Reason for decision

Adverse action notices (if rejected)

The Cost of Discrimination

Fair housing violations can result in:

HUD complaints and investigations

Lawsuits with actual and punitive damages

Civil penalties up to $100,000+

Mandatory fair housing training

Reputation damage

In my 20+ years advising landlords, I've seen well-intentioned property owners face devastating lawsuits because they didn't understand fair housing law. Invest in education and professional screening services—it's far cheaper than litigation.

Tenant Screening Done Right: Balancing Risk Management and Fair Housing Compliance