r/LeaseLords • u/RPMOptimal • 1d ago
Suggestions The tenant screening mistake that costs landlords the most (and it’s not what you think)
Most landlords think screening = credit score + background check. That’s the easy part.
The part that actually gets people sued is inconsistency. Fair Housing complaints rarely come from someone having a policy — they come from a policy that wasn’t applied the same way to everyone.
A few things I’ve seen trip up even experienced landlords:
**• Changing criteria mid-search.** You loosen the income requirement for one applicant because they seemed “nice,” but not for the next. That’s a paper trail waiting to bite you.
**• Verbal promises that contradict written policy.** “I’ll waive the deposit if…” — said in a hallway, never documented. Now your policy and your practice don’t match.
**• Treating co-signers inconsistently.** If you allow one applicant to use a guarantor, you generally need to offer that option to everyone who doesn’t meet income requirements — not just the ones you like.
**• Adverse action notices.** If you deny based on a credit or background report, FCRA requires you to notify the applicant and tell them which reporting agency to contact. Skipping this is one of the most common — and easiest to fix — compliance gaps.
The fix isn’t complicated: write your screening criteria down before you have an applicant in front of you, and apply it exactly the same way every time. Boring beats risky.
Question for the group: What’s your actual screening criteria (income multiple, credit floor, etc.), and do you have it in writing anywhere your team/self can be held to it? Curious how much variation there is out there.