Do this before you accept tenant applications

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01/27/2017 | Author: Editorial Staff

Before you start screening potential tenants, you should take certain steps to comply with the law.

The Texas Property Code requires that a landlord make available to an applicant a notice containing the tenant-selection criteria and a list of reasons for which an application may be denied. The tenant-selection criteria may include the applicant’s criminal history, previous rental history, current income, or credit history—any of which may be grounds for rejection if a negative outcome is found. If the landlord doesn’t make this notice available and rejects an applicant, the landlord must return the application fee and any application deposit. TAR’s Model Tenant-Selection Criteria Form satisfies this Texas Property Code requirement. If you are managing a property on behalf of the property owner, you should talk with your client before adopting this form.

If using the Residential Lease Application (TAR 2003), which requires applicants to provide Social Security numbers, you must have a privacy policy in place and must make the policy available to prospective tenants upon request. The Texas Association of REALTORS® offers a Model Privacy Policy that can be used to comply with state and federal requirements.

Categories: Property Management, Legal
Tags: legal, property management, leasing, renters


Comments

Jon Gardella on 02/21/2017

Good article with updated information to help all Texas Realtors and Property Managers minimize their liability and compliance with state and federal requirements… Just wish any and all links to any forms or outlines could be in PDF Format!

Kirk Schneider on 02/21/2017

“The Texas Property Code requires that a landlord make available to an applicant a notice containing the tenant-selection criteria and a list of reasons for which an application may be denied.”
Does this apply to the TAR commercial application as well?

Saundra Johnson on 01/27/2017

This tip was great.  I loved that the hyperlink to the documents were embedded into the article for ease of access


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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