Can landlords deny applicants with prior evictions?

Tenant Screening in New Mexico: Denying Applicants with Prior Evictions

As a landlord in New Mexico, tenant screening is a critical step in protecting your rental property and maintaining a positive rental experience. One common concern among landlords is whether they can deny applicants who have prior evictions on their rental history. This guide provides a detailed overview of the rules, best practices, and considerations related to evictions in tenant screening under New Mexico law.

Can New Mexico Landlords Deny Applicants with Prior Evictions?

Yes, landlords in New Mexico can deny rental applicants if they have prior eviction records. Evictions are a significant factor in risk assessment during the tenant screening process. However, landlords must comply with both state and federal laws to ensure that their tenant screening practices are lawful and nondiscriminatory.

Understanding Prior Evictions as a Screening Criterion

• Definition of Prior Eviction: A prior eviction refers to any legal judgment to remove a tenant from a rental unit, typically due to failure to pay rent or violation of lease terms.
• Impact on Rental Risk: Tenants with prior evictions may represent an increased risk of non-payment or lease violations.
• Landlords’ Right to Screen: New Mexico landlords have the right to establish reasonable screening criteria, which may include considering eviction history.

Legal Considerations for Denying Applicants Based on Evictions

While landlords may consider evictions in screening, New Mexico landlords must be aware of the following legal guidelines:

Fair Housing Laws

• Federal Fair Housing Act (FHA): Prohibits discrimination against tenants based on race, color, national origin, religion, sex, familial status, or disability.
• New Mexico Human Rights Act: Provides similar protections to ensure housing discrimination based on protected classes is unlawful.

Landlords cannot use eviction history as a pretext to discriminate against applicants in protected classes. For instance, denying an applicant with an eviction solely because they belong to a particular race or national origin, while allowing other applicants with eviction histories to proceed, is unlawful.

Use of Criminal Records in Screening

Though not directly about evictions, New Mexico law also regulates the consideration of criminal records in tenant screening, which can often be intertwined with eviction cases involving criminal behavior. Ensure that background checks comply with state rules, balancing tenant safety with individual rights.

Credit and Background Checks

• Landlords should obtain written consent before running credit and background checks.
• Applicants must be informed if denial is based on information obtained in these reports under the Fair Credit Reporting Act (FCRA).

Best Practices for Handling Applicants with Evictions

Even though landlords can deny applicants for prior evictions, adopting fair and consistent screening practices supports lawful operations and better tenant relationships.

Evaluate the Circumstances of the Eviction

• Age of the Eviction: Older evictions, particularly those settled or that occurred many years ago, may not be indicative of current risk.
• Reason for Eviction: Determine if the eviction was for non-payment, property damage, or other lease violations. Context can guide decision-making.
• Subsequent Rental History: Positive rental history following an eviction can demonstrate an applicant’s reliability.

Implement Consistent Screening Criteria

• Apply the same standards to all applicants to minimize discrimination risks.
• Document screening policies thoroughly and apply them uniformly.

Communicate with Applicants

• Consider giving applicants with evictions a chance to explain their circumstances.
• Request references from previous landlords to verify improvement in behavior or financial stability.

Use a Comprehensive Screening Approach

• Consider credit scores, income verification, employment history, and references alongside eviction history.
• Use eviction records as one factor, rather than the sole basis for denial.

Provide Notice When Denying Based on Eviction or Background Check

• Under New Mexico and federal law (FCRA), you must provide an adverse action notice if denying tenancy based on credit or background check reports.
• Inform applicants which report or information contributed to the denial and provide information on how to dispute incorrect data.

Summary

In New Mexico, landlords may lawfully deny applicants who have prior evictions, as evictions can indicate potential rental risks. However, it is essential to:

• Apply screening criteria consistently.
• Avoid discrimination against protected classes.
• Consider the context and recency of eviction records.
• Provide proper notification when denying applications based on screening reports.

By adhering to these principles, landlords can effectively protect their rental investments while complying with New Mexico landlord-tenant laws and fair housing regulations.