Can I Get Denied Rental Application for Background Check?

Did you know that your rental application can be denied for various reasons? Prospective tenants won’t be guaranteed a rental agreement just because they like a particular property. Leasing an apartment or house isn’t that simple.

Among the common reasons why people get rejected from a rental application is because of their background check results. We’ll discuss relevant laws to background checks, common reasons why applicants get rejected, and what you can do if your application gets rejected.

Can I Get Rejected from Leasing a Rental Property?

Yes, property managers or landlords may reject your application for various reasons. A landlord looks at several factors before deciding if a rental applicant is a good match for their property. One’s background, credit history, and even the comments of a previous landlord are considered before a decision is made.

While there are legal ways to reject a rental application, there are also illegal ones that potential tenants and landlords should familiarize themselves with.

All About the Fair Housing Act

One of the most relevant federal laws surrounding potential renters is the Fair Housing Act. This legislation stipulates that it’s illegal for a landlord to discriminate against or have a preference toward a tenant because of their color, national origin, religion, gender, familial status, or disability status. There shouldn’t be any discrimination when advertising a property, negotiating a sale or rent.

If a tenant gets turned down for any of these reasons, they can report to the US Department of Housing and Urban Development.

Transparency Through the Fair Credit Reporting Act

Another significant legislation is the Fair Credit Reporting Act. This legislation gives people rights as tenants and rental applicants. It stipulates that a landlord must notify you about the rejection if the reason stems from the tenant screening report. Also called an adverse action notice, this notification must be:

• Provided electronically, in writing, or orally
• Give the name, contact number, and address of the company that supplied the report
• Expound on your right to have a free copy of the report if requested within 60 days of the adverse action
• Elucidate your right to dispute the information in the adverse action

Aside from the above details, the adverse action may also include the following:

• A requirement to have a co-signer on the lease agreement
• A requirement for a higher monthly rent payment or a more significant deposit

6 Reasons a Rental Application Can Be Denied Based on a Background Check

While a rental business isn’t allowed to discriminate against you during a background check, landlords are free to choose who they see fit to become their new tenant. Here are six common reasons prospective tenants can get rejected due to the background check:

1. Criminal History

It should be highlighted that potential tenants can’t be rejected because they have an arrest record. Innocent people can be arrested. However, it’s a different matter if the applicant has a criminal record. Having a criminal record might deter landlords from getting you as a tenant.

2. Not Enough Income

Being able to pay rent is one of the most vital factors landlords look into when considering new clients. A low credit score and income infer that you don’t make enough money to pay the monthly rent required for the property. Some landlords compute a person’s ability to make payments based on their rent-to-income ratio. The rent should be, at the most, a third of what the tenant makes to afford it.

3. Questionable Rental History

Aside from having a poor credit score, your previous landlord might play a hand in your rejection of renting a particular property. If your former landlord discloses that you caused severe damage, failed to make payments on time, or violated your lease multiple times, you might be denied the rental property.

On-time rent payments are essential for landlords because, after all, it’s still a business. Having records of prior evictions can damage your chances in the tenant screening process because it displays how unreliable you can be as a tenant.

4. Poor Credit Report

Your credit report plays a vital role in your chances of getting chosen as a tenant. If your records show you’ve had bankruptcy issues or extremely high debt in the past, a landlord might be hesitant to rent their property to you. Even if you have the means to pay rent, your other financial obligations might deter you from paying rent on time.

However, property managers won’t automatically reject you because you have a debt to pay. Almost everyone has debt, but being buried in debt can hurt your chances of being chosen as a tenant.

5. Past Evictions

As mentioned, if a previous landlord shares that you’ve been evicted in the past, there’s a chance the landlord or manager of the rental property might take it against you. Your record as a tenant can significantly impact your rental application, so you must prove you’re reliable.

6. False Information

The rental application should be taken seriously. Even if you have the means to pay the landlord, they might reject your application if you give incorrect or misleading information. It would be unwise to do business with someone dishonest, so you should be transparent about your background to avoid any issues.

What to Do if a Landlord Rejects Your Application

But what can you do if your rental application is unsuccessful? Here are some steps you can take to learn from this unfortunate incident:

Ask for the Reason for Denial

The Fair Credit Reporting Act mandates a potential tenant’s right to learn why their application was rejected. The tenant screening report should specify the cause, and you can learn from this incident to improve your chances of getting chosen as a tenant in the future.

Dispute Inaccuracies

Prospective tenants don’t have to accept a rejection, especially if they think their rejection is unjustified. They can dispute inaccurate information with the credit reporting agency if there are errors in the report. If you’re inclined to do this, you must present evidence to counter the false information in the report.

Better Your Credit Score

A poor credit score can be a massive deterrent in your pursuit of renting a specific property. You can improve your credit score in various ways, including providing additional documentation, financial assurance, and possibly a co-signer. Taking extra measures to strengthen your future applications can better your chances of renting the property of your choice.

Special Consideration for Military Tenants

But what if the potential tenant was an active duty service member? Your military status gives you protection under fair housing laws. People can’t deny you a rental property because you work for the Armed Forces. The law states that military tenants shouldn’t be discriminated against in all aspects of housing, including renting or residing in a home.

Aside from protection from discrimination, the Servicemembers Civil Relief Act (SCRA) makes it easy for service members to fulfill their military obligations in various ways. Military tenants can break their lease early without paying penalties because of the SCRA. Moreover, they can’t be evicted due to non-paying rent while on active duty.

Conclusion

Landlords are free to be picky when choosing a tenant. While criminal history can hurt one’s chances of being selected, being part of the Armed Forces shouldn’t be taken against you. Fortunately, laws like the SCRA are in place to safeguard military tenants’ best interests.

Proving you’re on active duty is vital for SCRA protections. SCRACVS can help you prove you’re on active duty. Simultaneously, it can help landlords verify if someone is qualified for SCRA protections. Open an account today to verify your active duty status.

FAQs

Is military status a federally protected class in Fair housing?

No, your military status isn’t included in the list of federally protected classes. However, state and local laws can protect you from discrimination as a tenant.

What does unsatisfactory or insufficient mean for rental history?

This means that your application fails to meet the expectations of the landlord. It could mean many things, including property damage, lease violations, late payments, or noise complaints. Your history as a tenant plays a vital role in the applicant process.

What is considered a bad rental history?

It could mean several things, including being notorious for paying rent late, violating your lease agreement, or noise complaints. Negative feedback from your previous landlord can affect your potential landlord’s perception.

What is the meaning of military provisions?

Also known as military rations, these are the necessities and supplies provided to service members to support them during military operations. Provisions make it possible for service members to perform their tasks efficiently.

Can I still rent an apartment if I’ve been evicted before?

Yes, it’s still possible for you to rent an apartment even if you’ve been evicted before. You might have to take extra steps to strengthen your application, but it doesn’t mean no one would ever permit you to rent a property.

Can a landlord deny my application because I refused a background check?

Yes. It’s considered standard practice for landlords to conduct a background check on potential tenants. Refusal might mean an automatic rejection.