Can landlords deny applicants with prior evictions?

Tenant Screening in Michigan: Can Landlords Deny Applicants with Prior Evictions?

When managing rental properties in Michigan, landlords face the task of thoroughly screening applicants to ensure reliable, responsible tenants. A common question landlords ask is whether they can deny applicants who have prior eviction records. Understanding the legal framework and best practices for tenant screening in Michigan is essential to making well-informed, compliant decisions.

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Overview of Tenant Screening and Evictions in Michigan

Tenant screening is a fundamental step in the leasing process that helps landlords evaluate the financial responsibility and rental history of prospective tenants. Screening typically includes checking credit reports, criminal background checks, income verification, and reviewing rental history, including any past evictions.

Under Michigan law, landlords have the right to consider an applicant’s eviction history when making rental decisions, but it is important to balance this right with federal and state anti-discrimination laws that protect tenants from unfair treatment based on protected characteristics.

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Can Michigan Landlords Deny Applicants with Prior Evictions?

Yes, landlords in Michigan can legally deny applicants based on prior evictions.

Eviction records are public information and can be accessed through court records and tenant screening services. Since an eviction history often signals potential issues with rent payment or lease compliance, landlords are generally within their rights to reject applicants who have been previously evicted. However, this decision must be applied carefully and consistently.

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Key Considerations for Denying Applicants with Evictions

1. Consistency is Crucial

• Landlords should apply the same screening criteria to all applicants to avoid claims of discrimination.
• Select clear, objective standards for evaluating eviction history, such as:

- The number of prior evictions - The elapsed time since the eviction occurred - The nature of the eviction (e.g., non-payment of rent, lease violations)

• Ensure that these criteria are documented in your tenant screening policy and are consistently enforced.

2. Review the Context of the Eviction

• Not all evictions indicate that an applicant will be problematic.
• For example, an eviction several years ago that has not recurred may be less indicative of future issues.
• Consider any tenant explanations or supporting documents that clarify the circumstances.

3. Adhere to Michigan and Federal Fair Housing Laws

• Michigan landlords must comply with the Michigan Elliott-Larsen Civil Rights Act and federal laws such as the Fair Housing Act.
• These laws prohibit discrimination based on race, color, religion, sex, national origin, familial status, disability, sexual orientation, marital status, age, and other protected classes.
• Eviction history should never be used as a proxy to discriminate against protected classes.

4. Use Applicant Screening Reports Responsibly

• Tenant screening companies provide eviction records as part of their reports.
• Verify that the information is accurate and up-to-date.
• If an eviction record is erroneous, applicants may dispute it, and landlords should give proper consideration.

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Best Practices for Handling Applicants with Eviction History in Michigan

To minimize risks and ensure fairness, Michigan landlords should adopt the following best practices:

• Develop a Written Screening Policy:

Clearly outline how eviction history influences rental decisions, and share these criteria with all applicants.

• Verify Documentation:

Ask applicants to explain any prior evictions and provide relevant documentation, such as proof of rent payment or court dismissal, if applicable.

• Consider Establishing Conditional Offers:

In cases of eviction history, landlords might request additional security deposits, co-signers, or shorter lease terms to mitigate risk.

• Keep Records:

Maintain detailed records of all screening decisions to defend against any possible claims of discrimination or unfair treatment.

• Inform Applicants of Denial Reasons:

If you deny an application based on your screening report, including prior evictions, provide the applicant with an adverse action notice in compliance with the Fair Credit Reporting Act.

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Summary

In Michigan, landlords have the legal right to deny rental applications from prospective tenants with prior evictions. Eviction history is a significant factor in assessing the potential risk an applicant might pose. However, landlords must exercise this right responsibly, applying uniform screening standards and respecting protections against discrimination under Michigan and federal laws.

A thoughtful, well-documented tenant screening process helps landlords make informed decisions, reduce property management risks, and promote fair housing practices within the Michigan rental market.