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How to Choose the Right Tenants Without Violating Fair Housing Laws

  • Writer: Strategic Growth
    Strategic Growth
  • May 29
  • 3 min read

By Strategic Growth Real Estate

Choosing the right tenant is one of the most important decisions a landlord or property manager can make. A reliable tenant protects your property, pays rent on time, and contributes to a positive living environment. However, selecting tenants must be done carefully and legally especially in a highly regulated city like Los Angeles.

At Strategic Growth Real Estate, we work with property owners to help them find and retain qualified tenants. In this guide, we’ll explain how to screen applicants thoroughly without violating Fair Housing Laws at the federal, state, or local level.


What Are Fair Housing Laws?

The Fair Housing Act is a federal law that prohibits discrimination in the rental, sale, or financing of housing based on:

  • Race

  • Color

  • Religion

  • National origin

  • Sex (including gender identity and sexual orientation)

  • Disability

  • Familial status (including the presence of children under 18)


In California, protections are even broader. Under the Fair Employment and Housing Act (FEHA) and the Unruh Civil Rights Act, it is also illegal to discriminate based on:

  • Age

  • Marital status

  • Source of income (including housing vouchers)

  • Ancestry

  • Immigration status

  • Primary language

  • Medical condition

  • Arbitrary personal characteristics

In Los Angeles, additional tenant protections are enforced, especially under rent control ordinances and just-cause eviction laws.


What You Can and Cannot Consider When Screening Tenants

Permitted Criteria

Landlords are allowed to evaluate tenants based on objective, business-related criteria. These include:

  • Credit history and credit score

  • Income and employment verification

  • Past rental history

  • Criminal background check (with restrictions)

  • Income-to-rent ratio (commonly 2.5x to 3x monthly rent)

These factors help assess whether an applicant is financially stable and likely to fulfill lease obligations.


Prohibited Criteria

It is illegal to base decisions directly or indirectly on any of the protected classes mentioned earlier. This means you cannot:

  • Reject an applicant because they have children

  • Ask about disabilities or medical conditions

  • Treat applicants differently based on name, accent, or perceived ethnicity

  • Refuse tenants who pay with housing assistance or Section 8 vouchers

  • Ask questions about immigration or citizenship status

Even unintentional or "subtle" discrimination, such as steering certain applicants toward or away from specific units, is prohibited.


Best Practices for Legal Tenant Selection


1. Standardize Your Application Process

Use the same rental application form and ask the same questions of every applicant. This ensures a consistent and defensible process.

2. Publish Your Tenant Selection Criteria

Be transparent. Let applicants know upfront what your minimum requirements are for example, credit score, income level, or rental history. This helps avoid misunderstandings and reduces the risk of claims of discrimination.

3. Document Everything

Keep detailed records of each application, including screening reports, notes, correspondence, and your decision rationale. If you reject an applicant, note the specific, legal reason for denial.

4. Apply Criteria Consistently

Avoid making exceptions on a case-by-case basis. Treat every applicant equally, regardless of their background or personal story. Inconsistency can easily appear discriminatory.

5. Be Cautious With Criminal Background Checks

California law limits the use of criminal records in tenant screening. For example, you cannot have a blanket policy against renting to individuals with any criminal record. The offense must be relevant and recent enough to pose a legitimate concern.

6. Get Professional Support

If you're unsure whether your process is compliant, consult with legal counsel or partner with a knowledgeable property management firm like Strategic Growth Real Estate.


Why This Matters in Los Angeles

Los Angeles has some of the most tenant-friendly laws in the country. As a landlord, making even small missteps in your screening process can lead to legal consequences, fines, or lawsuits. More importantly, fair housing compliance ensures a diverse and equitable rental market for all Angelenos.

Our team at Strategic Growth Real Estate helps property owners and investors throughout Los Angeles stay in full compliance with fair housing laws while still protecting their investment. We streamline the screening process, select reliable tenants, and handle documentation to ensure every leasing decision is legally sound.


Conclusion

Choosing the right tenant is critical but so is choosing the right process. The key is to establish and follow fair, consistent, and legally compliant screening practices. When in doubt, work with professionals who understand the complex legal landscape of California real estate.

If you're a landlord or investor in Los Angeles and need help navigating the tenant screening process, contact Strategic Growth Real Estate. We’re here to make leasing simple, successful, and 100% compliant.


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