Can PM company declines an application without any reason

8 Replies

Hi everyone, 

We accepted an application with higher security deposit because of their credit score. We sent out an approval email and we got the response with unpleasant attitude stating that we were trying to force them out. The terms based on our our policies that stated clearly on our website however it seems that they like to argue. I guess it will be not an easy relationship between tenants and PM if we go ahead and sign the lease. Just wonder if PM can decline an application without any reason and it will not against the law.

Please advice. Any thoughts would be appreciated. 

Thanks.

If you offered the unit with the increased deposit and they declined, you are free to move on to other applicants.  There has to be a meeting of the minds for a contract and it sounds like they don't agree to the terms you were offering.

Originally posted by @Jenny Nguyen :

Hi everyone, 

We accepted an application with higher security deposit because of their credit score. We sent out an approval email and we got the response with unpleasant attitude stating that we were trying to force them out. The terms based on our our policies that stated clearly on our website however  it seems that they like to argue. I guess it will be not an easy relationship between tenants and PM if we go ahead and sign the lease. Just wonder if PM can decline an application without any reason and it will not against the law. 

Please advice. Any thoughts would be appreciated. 

Thanks.

 Yes that's fine. The only thing you cannot do is decline someone for being a member of a protected class. So long as you don't violate a fair housing law you are fine to decline anyone for any reason at anytime.

You need to have well defined rental criteria before you start advertising your unit. It you communicate your rental criteria to prospective tenants in advance before accepting an application and application fee (required in Washington State), you would not run into this problem.

It's perfectly fine to reject an application or approve it with conditions based on legal rental criteria.

You may want to use a standard form, such as an "Adverse Action Notice".

Here's some information from the one we use:

----------

ADVERSE ACTION NOTICE

Applicant name ____________

Applicant mailing address ___________

This notice is to inform you that your application to rent the property located at ______________  has been:

[] Rejected

[] Approved with conditions:

[] Residency requires an increased monthly rent of $_____

[] Residency requires increased [] fee or [] deposit of $ _____

[] Residency requires last month’s rent

[] Residency requires a qualified guarantor

[] Other requirement

Adverse action on your application was based on one or more of the following:

[] Information contained in a consumer credit report *

[] The consumer credit report did not contain sufficient information *

[] Information received in a criminal record

[] Information received in a civil record

[] Information received from references

[] Information received from previous rental history or reference

[] Information received from employment verification

[] Inaccurate, false, or misleading statements or missing critical information on the application

*If you were rejected based on a consumer credit report, you can request a copy of your credit report for free from the below-checked agency.

[] Experian

[] Equifax

[] Transunion

Dated this day of ________.

Agent/Owner Signature _________

I would check you local laws. For example, in Oregon i must accept the first qualified tenant that applies. Even if they argue with me. 

So dbl check before passing on them, just to be on the safe side 

Originally posted by @Mary M. :

For example, in Oregon i must accept the first qualified tenant that applies. Even if they argue with me.

Do you happen to have a link to this law? I couldn't find anything stating this. 

I know that Seattle tried this back in 2016 and it was ruled unconstitutional earlier this year.

Originally posted by @Greg M. :
Originally posted by @Mary Mitchell:

For example, in Oregon i must accept the first qualified tenant that applies. Even if they argue with me.

Do you happen to have a link to this law? I couldn't find anything stating this. 

I know that Seattle tried this back in 2016 and it was ruled unconstitutional earlier this year.

No, I dont. I was taught this (in 2015) in a property management course put on by the local MF association. I just now tried to find it in the law but was not able to see it. I will shoot my atty a quick email to see what he thinks.