Can I Reject a Rental Applicant Because of a Criminal Background?

A landlord asks: "Can I reject a rental applicant because they have a criminal background or appear on the sex offender registry?"

The short answer: It depends.

When screening prospective tenants, landlords walk a fine line between protecting their property and complying with fair housing laws. Here is a breakdown of what landlords can—and cannot—do when reviewing an applicant’s background.

The Rule Against "Blanket Bans"

A landlord cannot maintain a blanket policy that automatically rejects any rental applicant with a criminal background or arrest record. An arrest record or criminal history alone is not a sufficient legal basis to deny housing.

Instead, landlords must evaluate criminal backgrounds on a case-by-case basis.

To stay compliant, landlords should implement standardized, written screening policies and only reject an applicant if their specific criminal history poses a demonstrable risk to the safety of other residents or the physical property. Crucially, these policies must be enforced equally and consistently across all applicants.

How to Evaluate Criminal Backgrounds

When reviewing an applicant's criminal history, a landlord should weigh the risk factors against the applicant's rehabilitative efforts. Consider the following:

• The Offense: The nature and severity of the crime.

• The Timeline: How much time has passed since the offense occurred.

• The Applicant's Age: How old the applicant was at the time of the offense.

• Mitigating Factors: Efforts to rehabilitate, steady employment, strong rental history, and good creditworthiness.

  
  

Example of a Legal Rejection: Rejecting an applicant convicted of a violent crime within the last five years is generally acceptable. Example of an Illegal Rejection: Rejecting an older applicant because of a minor conviction for possession of a controlled substance when they were 18 years old.

Navigating the Sex Offender Registry

Similarly, a landlord cannot have a blanket policy rejecting any applicant simply because they appear on the sex offender registry. Just as with general criminal records, the landlord must implement standardized policies and weigh the various factors and risks.

Context Matters:

• A landlord would likely be justified in rejecting a recent offender if the apartment is in a multi-family building with many young children.

• However, rejecting an applicant with a 15-year-old conviction who is applying to rent a standalone single-family home may cross the line into discrimination.

Valid Reasons to Reject a Rental Applicant

While criminal history requires careful navigation, landlords still have broad discretion to reject applicants based on objective, financial, and behavioral criteria. Valid reasons for rejection include:

• Financial Insufficiency: Unverifiable income, insufficient income, or a low credit score.

• Application Issues: Providing false information, submitting an incomplete application, or failing to authorize a credit/background check.

• Financial History: A prior bankruptcy.

• Rule Violations: Refusing to agree to the lease terms, being a smoker (if the property is non-smoking), or having pets in a strict no-pet building (with exceptions for legally protected service or emotional support animals).

• Verifiable Bad Tenancy: A history of damaging property or failing to pay rent.

A Note on Evictions and "Tenant Blacklists": Under New York law, landlords are strictly prohibited from rejecting an applicant solely because they have a prior eviction proceeding on their record (often referred to as the "tenant blacklist"). However, if you contact a prior landlord who directly advises you that the applicant damaged the property or failed to pay rent, that specific reference is a valid basis to reject.

Understanding Protected Classes

When drafting screening policies, it is vital to remember the protected classes. A landlord cannot deny housing or discriminate against applicants based on:

• Race, Color, or National Origin

• Religion

• Gender or Gender Identity

• Familial Status or Marital Status

• Age

• Sexual Orientation

• Disability / Handicap

• Source of Income (including participation in Section 8 or other housing subsidy programs)

Protect Your Real Estate Investments

Navigating tenant screening laws requires careful attention to detail. Implementing the wrong policy—or applying a valid policy inconsistently—can expose landlords to severe discrimination penalties.

At Bizzoco Law Group, PLLC, we help landlords draft compliant screening criteria, navigate tenant disputes, and handle all aspects of real estate law. If you need assistance reviewing your leasing policies or have questions regarding a specific applicant, let us help you.

Contact Us Today:

• Phone: (646) 470-4700

• Email: gb@bizzocolg.com

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