Screening and setting my criteria while staying within Fair Alabama housing rules
Jerry RobinsonPro Member
Investor · Atlanta GA Huntsville, AL · Member since 2014 · 64 posts · 14 votesI listed my first Rental on Rentredi and I notice I getting canidates that are not within my Criteria. In my prequalifications I see canidates with questions like needing cosignier, below 500 credit score, felony charges over 20 years ago. I didnt post in my listing my criteria for fear of volating Fair Housing laws. If Im wanted to interview tenants that have = 600+ credit score, earn 3x Rent, felonies , eviction will be reviewed on a case by case, also the prequlification must be completely filled out.
Im here in Huntsville,AL but I would imagine this would aply to any state. How has everyone else handled the screening process in the prequalification stage?
thank you Jerry
Jerry, good instinct to pause before posting your criteria. Even neutral-sounding standards like a credit floor or a criminal-history rule can raise disparate-impact concerns depending on how they're worded and applied. On top of that, "fair housing" isn't one set of rules. It's three layers, and you have to clear all of them:
Federal: The Fair Housing Act sets the baseline: race, color, religion, sex, national origin, familial status and disability. Federal guidance on criminal-history screening has also changed recently, so what you read a couple of years ago may not reflect where things stand now.
State: Alabama's fair housing law largely tracks the federal classes. Other states add protections of their own, so don't assume your Georgia and Alabama rentals follow identical rules.
Local: This is the layer most landlords miss. Cities and counties can add protected classes and their own screening or notice rules on top of the state's. When I owned long-term rentals in Orlando, I learned the local layer can add rules beyond state and federal law. Check whether Huntsville or Madison County has anything layered on top.
Whatever you settle on, have your criteria in writing for your own file and apply them the same way to every applicant. Consistency is your best protection.
I'd strongly encourage a sit-down with a local real estate attorney before you finalize anything. Have them review your criteria against all three layers, including whether and how to share them with applicants. It's a small cost compared with defending a complaint. I'm not an attorney, so treat this as a starting point.
Jerry, good instinct to pause before posting your criteria. Even neutral-sounding standards like a credit floor or a criminal-history rule can raise disparate-impact concerns depending on how they're worded and applied. On top of that, "fair housing" isn't one set of rules. It's three layers, and you have to clear all of them:
Federal: The Fair Housing Act sets the baseline: race, color, religion, sex, national origin, familial status and disability. Federal guidance on criminal-history screening has also changed recently, so what you read a couple of years ago may not reflect where things stand now.
State: Alabama's fair housing law largely tracks the federal classes. Other states add protections of their own, so don't assume your Georgia and Alabama rentals follow identical rules.
Local: This is the layer most landlords miss. Cities and counties can add protected classes and their own screening or notice rules on top of the state's. When I owned long-term rentals in Orlando, I learned the local layer can add rules beyond state and federal law. Check whether Huntsville or Madison County has anything layered on top.
Whatever you settle on, have your criteria in writing for your own file and apply them the same way to every applicant. Consistency is your best protection.
I'd strongly encourage a sit-down with a local real estate attorney before you finalize anything. Have them review your criteria against all three layers, including whether and how to share them with applicants. It's a small cost compared with defending a complaint. I'm not an attorney, so treat this as a starting point.
Jerry, write the criteria down first, then apply it the same way to every applicant. That is the whole point. Ours is simple: verified repeatable income, and the story has to match the paperwork. A credit score alone does not clear anyone, and a high score does not override a mismatch. Require a complete prequalification before a showing — if it is half-filled, it is not a screening, it is a guess. Keep the same standard for every house, keep notes on what you checked, and do not make exceptions in the moment. On the fair-housing side, I am not your attorney, so run your written criteria past a local landlord attorney or the housing authority in Huntsville before you use it. The rules layer — federal, state, and local — and the safe move is to get the local layer checked. What part of your prequal is getting skipped most often?
Hey @Jerry Robinson,
Good on you for pausing before you put your criteria in the listing. It's a pretty common surprise with a first rental when the early prequalifications come in with 500 credit scores and cosigner requests, and it's much easier to sort out now than after a few showings.
The one part I'd tighten is the case by case review for felonies and evictions. I think case by case can still be consistent, as long as you write down ahead of time what you'll actually look at, like how long ago it was, what it was for, and what their rental and work history has looked like since. That way two similar applicants get the same answer, even if they apply weeks apart.
If I were in your shoes, I'd also keep a simple one-page scorecard for every applicant. It would list each line of your criteria, what they showed you to meet it, like pay stubs, the credit report or a landlord reference, and a short note on your decision. If a denial is ever questioned, that page shows you used the same yardstick for everyone. This is also one of the places AI can really help a small landlord, because it can read a completed application and the documents against your written criteria, fill in that scorecard and point out anything missing, while the final yes or no stays with you.
Best of luck with your first one,
Lee