Once a landlord advertises a property for rent, he has every right to exercise due diligence in selecting the tenant. Screening tenants is the first step a landlord must take before renting out his property. The landlord has the right to reject a tenant if they don’t meet the necessary criteria. With multiple tenant applications, careful consideration is required to choose one tenant over another. In this guide, we discuss common reasons why landlords reject tenant applications. However, it’s important to note that state governments have implemented regulations to prevent the unlawful rejection of tenants, which is also covered in this article.
See also: Pay rent through credit card on Housing.com
12 common reasons why landlords reject tenants
Mentioned are valid reasons why a landlord can reject tenants.
Reason to reject #1: Earns less annual income
Rent is a significant portion of a person’s monthly income. Generally, a tenant should earn at least four to five times the rent they will pay to ensure they can afford the rent on time and maintain a comfortable lifestyle. If the tenant’s income is insufficient to comfortably cover the rent, the landlord has every right to reject the application. A landlord can review the tenant’s salary statements, financial backing, savings, assets, credit history and properties to make an informed decision.
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Reason to reject #2: Bad credit history
If a tenant has a bad credit history, it may indicate financial irresponsibility. This could lead to the tenant defaulting on rent, causing distress for the landlord. A low credit score may suggest that the tenant has missed loan payments, carries significant debt, or has a foreclosure or bankruptcy history. Note that credit score or CIBIL score is of great importance and in fact, according to media reports, a family in Maharashtra called off their daughter’s marriage because they found that the groom’s CIBIL score was poor.
However, you can still assess the tenant’s situation by asking them to provide financial documents that demonstrate their financial responsibility.
Reason to reject #3: Unverified income
As mentioned above, rent constitutes a significant portion of the tenant’s salary. If the tenant fails to provide proof of income as requested by the landlord, the landlord has no way to verify the tenant’s employment or income details, making it difficult to determine if they can continue paying rent on time throughout the duration of the agreement. Therefore, the landlord has every right to reject the tenant in order to protect the property.
See also: Can HRA exemption be claimed on rent paid to parents?
Reason to reject #4: Criminal record
While a landlord cannot discriminate or reject a tenant solely based on a criminal complaint (as innocent people may also be arrested), he must tread carefully. There are standard policies that guide a landlord’s decisions to protect both the property and the other residents living there. A landlord can reject a tenant whose conviction may have led to damage to the property. This may include: drunken driving, convictions with respect to theft in the house etc.
Reason to reject #5: Smoking
Smoking can cause problems if neighbours have an issue with it. Reports suggest that it may pose health risks due to passive smoking, increase the risk of fire in the house, and leave residue and odours that can cause long-term damage to the property. It’s a good idea for a landlord to inquire about the smoking habits of a tenant during a general conversation. A landlord is legally allowed to keep their property smoke-free and rent it to tenants who don’t smoke. It is recommended to mention this in the rental advertisement so that tenants who smoke won’t apply.
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Reason to reject #6: Tenant is a pet parent
This is another point that a landlord must carefully consider, as several court rulings support pets and pet parents in housing societies. Before renting to a pet parent, a landlord should review the pet’s documents, including details such as the last vaccination date. It’s also important to know the breed of the pet, as some animals are not allowed in residential areas due to their potentially dangerous nature, which could pose a risk to the neighbourhood. Also, it is in the best interest of the landlord to take undertaking from the tenant that he is a responsible pet parent. The tenant should assure that he will take care of the cleanliness of the surrounding areas and clean up when the pet relieves themselves in the public place so that others are not put into inconvenience.
Reason to reject #7: Bad rental history
If a tenant has a bad rental history, a landlord would likely reject the tenant’s application. Issues could include not following society rules, damaging the property, troubling neighbours, being involved in domestic violence, or engaging in anti-social or criminal activities such as gambling, prostitution, or drug dealing.
Under this the tenant may also have a history of making illegal modifications to the rental property, may have been evicted by the previous landlord, may have gotten into constant arguments with the previous landlord etc.
As part of the due diligence during tenant screening, the landlord should speak with the tenant’s previous landlord and gather feedback. It’s also recommended to seek positive or negative reviews from others who know the tenant well.
Reason to reject #8: Too many people in the house
A house should only accommodate the number of people it can reasonably fit. For example, a 1 BHK can typically accommodate 2 adults and 1 or 2 children. A 2.5 BHK is ideal for 2 senior citizens, 2 adults, and 2 children. It is inappropriate for a tenant to rent a 1 BHK and have 8 family members living there, as this would result in higher utility usage compared to neighbouring houses, which could cause issues. This will also result in wear and tear of the property very soon and may also not comply with the local code for renting a property.
Reason to reject #9: Short duration of rental stay
A landlord should know if the tenant will stay for at least 11 months as there are costs involved while renting a house. This includes registration of the rent agreement, renovating or repainting the house, undertaking repair work that was caused because of wear and tear of the previous tenant etc. In case the tenant requires the property only for four or five months, it’s a monetary loss for the landlord and he is allowed to reject the tenant owing to the monetary loss he may incur.
Reason to reject #10: Wrong information provided by tenant
A landlord can reject a tenant if he finds out that the information shared by the tenant is all wrong. This is a security threat and hence the landlord is well within his rights to reject the tenant’s application.
This can also be found out if the tenant doesn’t fill the rental application form completely and leaves a few of them as blank. This implies that he may be trying to hide some information. Finally if a tenant doesn’t authorise to get a background check done, the landlord can give the tenant a pass.
Reason to reject #11: Tenant filed for bankruptcy
If the tenant has filed for bankruptcy anytime in the recent past, the landlord should check if the tenant has the money to pay rent. If the landlord has his doubts on the financial aspect, he can reject the tenant.
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Reason to reject #11: Tenant doesn’t agree with landlord’s T&C
If the tenant does not agree to the terms and conditions of a landlord on effective usage of the rental property, the landlord can reject the tenant.
Reason to reject #12: Too many vehicles
If a tenant has too many vehicles then he may be parking them outside too in addition to his parking places which may lead to inconvenience to the public. In fact, many states like Maharashtra are contemplating on introducing a law that will make purchase of vehicles possible only when there is parking space available mandatorily.
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Should a landlord give explanations to a rejected tenant?
No. It is not mandatory for a landlord to give reasons for rejection to the tenant. However, a landlord can be polite and reason out on why he disapproved of the tenant.
What are the reasons on which a landlord cannot reject a tenant?
The landlord cannot reject a tenant on the basis of
- Â Â Caste
- Â Â Gender
- Â Â Religion
- Â Â Marital status
- Â Â Nationality
- Â Â Age
Housing.com POV
A tenant can well accept the rejection by the landlord by taking feedback on the grounds of rejection and if he can work on them. For instance, a tenant with a bad credit score can start to build a better one. Also, if a landlord is confused while choosing the tenant, then the tenant in his part can get more good references, negotiate with the landlord or also explore for a longer tenancy period. Note all this holds true if all information furnished is true legally.
FAQs
Can a landlord reject a tenant for their appearance or personal characteristics?
No, tenants cannot be rejected on the basis of their appearance or personal characteristics.
Can a landlord reject a tenant who has a history of evictions?
Yes, tenants who have a history of evictions can be rejected by landlords. This is done to safeguard their property and avoid legal hassles.
What happens if a tenant provides misleading or incomplete information?
In case a tenant provides false information on their application, the landlord has the right to reject the tenant’s application.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
