I am currently screening tenants for my rental apartment, a few of them have good credit score (above 700) but their credit history is only 0.5-1 year old. Can this be a good enough reason to deny their application?
That's a pretty good score,, if income is also within your criteria I'd consider it a GO
In order to avoid discrimination you should have a set of minimum qualification standards for all applicants. If that minimum is at least 2 years of credit history, for example, than that's fine, just as long as that applies to everyone. If your standards change based on the applicant you are opening yourself up to a potential lawsuit. If everything else checks out I'd say go ahead and rent to them. If you are worried you could also have them get a cosigner.
I'd agree with Jake Thompson,, except co signers.. once you let one person have a cosigner you have to let them all.. and this what you want to have happen..
So if you change your criteria after application is in your gonna be in a grey area,, if you hadn't set minimum of like 2 years of credit / income history...
woulda shoulda coulda
That's a good point! I would personally just rent to someone that meets my criteria without a cosigner, but some people don't mind allowing a cosigner. If you choose to allow a cosigner, make sure to vet them the same as you would a tenant.
You can reject for any reason you want but the best reason is due to finding a more qualified applicant.
When you inform someone their application is being rejected you never provide the reason. Unless your state regulations require otherwise applicants are not entitled to know the reason they are rejected.