Start with written criteria
Write your selection criteria down before you list the home, and apply them to every applicant in the same order. Consistency is your strongest defense against a fair housing complaint, and it makes decisions faster because you are not reinventing the standard each time. Texas law also requires landlords to make their tenant selection criteria available to applicants, so publish them with the listing or the application.
Good criteria are specific and measurable. They state the minimum income, the credit factors you weigh, how far back you look at rental and eviction history, how you review criminal history, your pet policy and whether you accept co-signers. They also say what happens when an application is denied.
- Income standard, stated as a multiple of the monthly rent, and what counts as income.
- Credit: what you look at and what is disqualifying, such as unpaid landlord or utility debt.
- Rental history: how many years of references, and what a negative reference means.
- Evictions: the look-back period and how dismissed cases are treated.
- Criminal history: which offenses and how far back, reviewed individually.
- Occupancy limits, pets, smoking and co-signer policy.
- Who must apply: every adult who will live in the home.
Fair housing: what you cannot do
The federal Fair Housing Act bars discrimination based on race, color, religion, sex, national origin, familial status and disability, and Texas has a matching state law. Some cities add protections of their own. In practice this means the same questions, the same standards and the same paperwork for everyone, and it rules out steering families away from a home or advertising a preference.
Two areas trip landlords up most. First, assistance animals are not pets. A tenant with a disability-related need for a service or support animal cannot be charged pet rent, a pet fee or a pet deposit, and breed or weight limits do not apply in the usual way. Second, criminal history. Federal guidance warns against blanket bans on anyone with a record, because they can have a discriminatory effect. Look at the nature of the offense, how long ago it happened and what has happened since, and do not deny based on an arrest that did not lead to a conviction.
Verify income and employment
Ask for recent pay stubs and confirm the employer directly using a number you look up yourself, not one printed on the application. For self-employed applicants, ask for tax returns and bank statements. For military applicants near Joint Base San Antonio, a Leave and Earnings Statement shows base pay and housing allowance. Housing vouchers are income too; if you accept them, count the voucher portion toward the standard.
Altered pay stubs are more common than many landlords expect. Compare year-to-date totals against the pay period, check that deposits on bank statements match, and call the employer.
Credit, eviction and background reports
Use a tenant screening service that pulls credit, eviction records and criminal background with the applicant's written permission. Read the full report, not only the score. A thin file from a young applicant is different from a file full of collections, and a medical collection is different from an unpaid balance to a past landlord.
If you deny an application, require a co-signer or charge a higher deposit because of something in a consumer report, the federal Fair Credit Reporting Act requires an adverse action notice. It must name the reporting company, say that the company did not make the decision and explain the applicant's right to a free copy and to dispute errors. Keep a copy in the file.
Call the landlord references
Previous landlords are often the most useful source, and the current landlord is not always the most honest one: a landlord with a problem tenant may give a glowing reference to see them go. Call the landlord before that if you can. Verify that the person is really the owner or manager by checking county property records or a management company's public number.
- Did the tenant pay on time? Were there late payments or returned payments?
- Did they give proper notice before moving out?
- Was any of the deposit kept for damage, and why?
- Were there complaints from neighbors or the HOA?
- Would you rent to them again?
Making the decision
Process complete applications in the order they arrive and approve the first one that meets your criteria. Picking among several qualified applicants on gut feel is where fair housing problems start. Document the reason for every decision in writing, keep the application and reports secure, and dispose of them properly when you no longer need them, since they hold sensitive personal data.
Once you approve a tenant, collect the deposit and sign the lease promptly. A home held for days without a signed lease is a home that can fall through.
How Rothrock screens for owners
When Rothrock Realty Team manages your home, every applicant is screened for credit, income, employment, eviction and criminal history and landlord references against written criteria applied the same way to everyone. The team sends you the findings on the qualified applicant, and you as the owner approve the tenant. Approved tenants sign the lease online and put renters insurance on file before move-in, and the full screening file is kept with the lease.
Questions
What can a landlord check when screening a tenant in Texas?
With the applicant's written permission: identity, income, employment, credit, rental history, eviction records and criminal background. Apply the same written criteria to every applicant.
Can a Texas landlord deny an applicant for a criminal record?
Criminal history can be considered, but blanket bans risk violating fair housing law. Review the offense, how long ago it was and what has happened since, and do not deny for an arrest without a conviction.
What income should I require from a tenant?
Many landlords use a multiple of the monthly rent. Pick a standard, write it into your selection criteria and use it for everyone.
Do I have to give a reason when I deny a rental application?
If the denial is based on a credit or background report, federal law requires an adverse action notice naming the reporting company and explaining the applicant's rights. Keep a written record of every decision either way.
Can I charge a pet deposit for an emotional support animal?
No. Assistance animals, including emotional support animals, are not pets under fair housing law and cannot be charged pet deposits, pet fees or pet rent.
Can I accept a co-signer for a tenant who does not qualify?
Yes, if your written criteria allow it. Screen the co-signer to the same standard and have them sign a guaranty.
General information about Texas rules, not legal advice. For a specific situation, speak to a Texas attorney.