You want to be sure that the tenant who occupies your property is going to be solid. They should have a decent credit score, a clean background check, and an income high enough to afford the property. Almost every property management company takes a look at these areas before they will approve an applicant. Unfortunately, there are still some situations where they have to learn to say no.

Every property owner has the right to turn down an applicant who wishes to rent their home. However, there are plenty of standards that make homeowners hesitant to turn anyone down. You may worry about violating the Fair Housing Act, making an unwise decision, or being sued for discriminatory practices. There are quite a few reasons why you could be hesitant to turn down a potential applicant, but you should know when it’s okay to stand your ground.

Understand Discrimination

The first real concern with turning down an applicant is whether you are discriminating against someone or not. You must make sure that you are offering the same deal and rules to everyone who applies. That is the best way to ensure that you aren’t discriminating against someone for some unknown reason.

You should make note that it isn’t discrimination to refuse to rent to someone because they have pets, poor credit, low income, or poor tenant history. You can set your own standards and rules for the property, as long as they will apply to everyone. You can read up on the Fair Housing Laws to get a better idea of what rules you can and cannot make in regards to your property.

Ask for Documentation

It pays to be prudent when it comes to selecting your next tenant. Don’t be afraid to ask for documentation such as a credit report. Be sure to check references and talk with previous landlords to get a better feel for whether this tenant will be reliable for you. Both of these can reveal issues that you might find unsettling and cause you to deny an applicant. Never be fooled by your first impression.

Consider the Risks

Before you say yes to an applicant, make sure that you consider the real risks. Evaluate whether the documentation says they will be reliable when it comes to paying their rent and taking good care of the home. If not, you might find that it is better to allow your property to sit vacant for a while. This is less expensive in the long run than repairing a property that has been trashed or moving through the eviction process.

Turning down applicants can be a scary prospect, particularly if you don’t care for confrontation. This stickier aspect of property management is one of the reasons why so many people opt for commercial property management. At Pyramis Company, we know how to follow the laws and still protect your investment to the fullest. Give us a call today to see how we can help you make the most of your rental property!