What Are Valid Reasons to Reject an Applicant in Texas?

In Texas landlords have to give applicants a written explanation of their selection criteria—and the reasons that an application might be denied.

Landlords should ask applicants to sign a form agreeing that they were given a written explanation of the tenant selection criteria. The form must include a statement very similar to this one:

Signing this acknowledgment indicates that you have had the opportunity to review the landlord’s tenant selection criteria. The tenant selection criteria may include factors such as criminal history, credit history, current income, and rental history. If you do not meet the selection criteria, or if you provide inaccurate or incomplete information, your application may be rejected and your application fee will not be refunded.

If the applicant doesn’t sign this form, then it’s assumed the document was never provided. This statement can also be included in the rental application (rather than a separate form), as long as it's either bolded or underlined.

1. Ability to pay the rent

If you set clear and objective financial requirements for a tenant and the applicant doesn't meet these requirements then you're in the clear. Their income or credit history are valid reasons to reject them, as is any sort of falsification of these things on their rental application.

2. Personal preferences that don't violate the fair housing act

The Fair Housing Act shields people from housing discrimination based on race or color, religion, national origin, familial status, disability, and gender. Certain cities in Texas have enacted additional protections, so make sure that your personal preference policies (for example, no smokers) don't violate your city laws.

3. Conviction of a crime that would threaten your property

Although people with criminal or housing court records are not technically a protected class under the Fair Housing Act, this is a legal grey area so you should tread carefully. To protect yourself, set a clear and objective policy related to criminal history and apply it equally to every tenant. A blanket policy against all convictions of any kind is likely to be perceived as discriminatory. You're never allowed to reject an applicant based on arrest record - they have to have been convicted.

4. Too many occupants as long as none are children

If a group of college kids applies to live together in your one bedroom apartment unit then you can reject them on this basis. The only situation where number of prospective occupants is not a valid reason to reject a tenant is if those occupants are children of the applicant.

5. It's illegal to accept one co-applicant but not the other

Texas landlords aren't allowed to pick and choose between co-applicants.

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