🔑 How to Choose the Right Tenant Without Violating Fair Housing Laws

Why Choosing the Right Tenant Matters — and How to Do It Legally

For landlords, the success of a rental property often comes down to one key decision: how to choose the right tenant. A responsible renter can protect your investment, keep your cash flow stable, and foster a positive landlord-tenant relationship. But this decision also comes with legal boundaries.

In New York City and across the U.S., tenant screening is regulated by federal, state, and local fair housing laws. Violating those laws—intentionally or not—can lead to costly lawsuits, fines, and reputational damage.

In this guide, you’ll learn how to choose the right tenant while staying fully compliant with fair housing regulations. We’ll cover:

What the law protects (and what it doesn’t)
What you can and can’t ask during screening
Best practices for evaluating applications fairly
NYC-specific rules landlords must know

What Is the Fair Housing Act — and Who Does It Protect?

Passed in 1968, the Fair Housing Act (FHA) is a federal law that prohibits discrimination in the sale or rental of housing based on:

Race
Color
Religion
National origin
Sex (including gender identity and sexual orientation)
Disability
Familial status (e.g. having children or being pregnant)

🗽 In New York City, additional protections apply under the New York City Human Rights Law, which includes:

Lawful occupation or source of income (such as housing vouchers)
Marital status and partnership status
Immigration or citizenship status
Gender identity and expression
Status as a victim of domestic violence or stalking

Understanding these protections is essential if you want to choose the right tenant while staying compliant.

Resource: NYC Commission on Human Rights

Step-by-Step: How to Choose the Right Tenant Without Discrimination

1. Create a Written Screening Policy

Start by developing a standardized rental criteria list that applies equally to all applicants. This might include:

Minimum credit score
Monthly income requirements (e.g., 40x the rent)
Employment and income verification
Rental history and references
Pet policy
Guarantor policy

📌 Make sure your criteria don’t indirectly discriminate—for example, requiring a specific job type or excluding voucher holders (which is illegal in NYC).

2. Use a Fair and Transparent Application Process

Use the same application form and process for every applicant. This includes:

Providing the same questions and disclosures
Charging the same application fees (within local legal limits)
Processing applications in the order received or by published criteria

In NYC, application fees for rentals are capped at $20 under the Housing Stability and Tenant Protection Act.

3. Focus on Objective, Documented Criteria

Once you receive an application, evaluate each one against the same objective standards. Do not consider:

Appearance or accent
Names that indicate race, religion, or ethnicity
Number of children or pregnancy status
Disabilities (even visible ones)

You can evaluate based on:

Creditworthiness
Verified income and employment
References from past landlords
Criminal background (with limitations — see below)

4. Be Cautious with Criminal Background Checks

In NYC, the Fair Chance for Housing Act (effective January 1, 2025) limits how and when criminal history can be considered:

You cannot ask about criminal history before making a conditional offer based solely on credit, income, and rental history.
Once a conditional offer is made, you may check for:
- Felonies if the conviction occurred within the past 5 years
- Misdemeanors within the past 3 years
- Sex offender registry status (current only)

If something shows up, you must:

Provide the applicant a copy of the report
Give them at least 5 business days to respond
Conduct an individualized assessment linking the conviction to a legitimate business concern

More info: NYC Fair Chance for Housing Law Overview

What Landlords Should Never Ask

Here are some questions or topics to avoid entirely:

“Are you married?”
“Where are you from originally?”
“Do you go to church nearby?”
“How many kids do you have?”
“Do you plan on getting pregnant?”
“What’s your citizenship status?”

Even casual conversation can be interpreted as discriminatory. Stick to questions directly related to tenancy, such as:

“How long have you lived at your current address?”
“What’s your monthly gross income?”
“Can you provide a landlord reference?”

NYC-Specific Protections to Keep in Mind

If you’re a landlord in New York City, you must also comply with:

Source of income laws: You cannot reject someone for using a housing voucher (e.g. CityFHEPS, Section 8).
Occupancy laws: You cannot deny a family because they have children unless the unit is legally restricted.
Disability accommodations: You must provide reasonable accommodations (e.g. allowing a service animal even if your building doesn’t allow pets).

These rules must be part of your process as you choose the right tenant in New York City.

📢 NYC aggressively enforces fair housing laws and regularly prosecutes “source of income” discrimination. Landlords can be fined up to $250,000 per violation.

Example: A Legal, Fair Screening Checklist

To help choose the right tenant fairly and legally, here’s a sample checklist you can use:

✔️ Completed and signed rental application

✔️ Proof of income (e.g. pay stubs or tax return)

✔️ Credit check (with applicant’s consent)

✔️ Employment verification

✔️ Landlord reference

✔️ Criminal history check (only after conditional offer)

✔️ Proof of rental voucher, if applicable

✔️ Consistent documentation for all applicants

Use this consistent process every time you choose the right tenant to ensure fairness and compliance.

Final Thoughts: Protect Yourself While Staying Compliant

You absolutely can choose the right tenant—someone reliable, respectful, and financially stable—without violating the law. The key is to apply consistent, objective criteria, document every step, and stay current with your local fair housing regulations.

If in doubt, consult a real estate attorney, property manager, or fair housing compliance specialist.

💡 Remember: The goal is not just to protect your property, but also to build a reputation as a fair and professional housing provider in your community.

📌 Helpful Resources

Choose the right tenant legally NYC