Can landlords deny applicants with prior evictions?

Tenant Screening and Prior Evictions: Guidance for New York Landlords

As a landlord operating in New York, tenant screening is a crucial part of your leasing process to ensure you select responsible tenants who will comply with lease terms and maintain your property. One sensitive issue in tenant screening is how to handle applicants with prior evictions on their rental history. This guide will outline the legal framework, best practices, and considerations specifically relevant to landlords in New York regarding denying applicants due to past evictions.

Understanding the Context: Evictions in New York

An eviction is a court-ordered removal of a tenant from a rental property, usually due to lease violations such as non-payment of rent or illegal activity. Prior evictions are commonly reported on tenant screening reports or background checks landlords use during the application process. Given the potential financial risks, it is understandable landlords would want to consider prior evictions as a factor in tenant selection.

However, New York landlords must balance risk mitigation with compliance with state laws governing tenant screening and discrimination.

Can Landlords Deny Applicants with Prior Evictions in New York?

Legality of Denial Based on Prior Evictions

In New York, landlords can deny applicants who have a prior eviction on their record, but within certain legal boundaries:

• No outright prohibition: New York law does not prohibit landlords from screening tenants based on prior evictions. A history of eviction is relevant to evaluating an applicant’s rental reliability.
• Consistency and non-discrimination: Denials must be applied consistently and in compliance with anti-discrimination laws. For example, landlords cannot selectively deny applicants with evictions in a way that disproportionately impacts protected classes under federal and New York State human rights laws.

Restrictions Due to New York’s Tenant Screening Guidelines

New York, particularly New York City, has enacted guidelines to regulate tenant screening criteria:

• Ban-the-Box and Look-Back Periods: NYC’s Tenant Screening Certification (TSC) mandates that landlords must use the same look-back period for everyone and prohibits discrimination based on arrests not leading to convictions. While this primarily affects criminal background checks, it reflects a broader trend toward careful regulation of screening criteria, including eviction histories.
• Reporting Requirements: Under New York State law, if a landlord denies an applicant based on information in a consumer report (which includes eviction records), the landlord must provide an adverse action notice. This gives the applicant the right to review the report and dispute inaccuracies.

Judicial and Fair Housing Considerations

• Fair Housing Compliance: Denying applicants solely because of prior evictions is allowed, but landlords must ensure that such denials do not constitute disparate impact discrimination based on race, national origin, disability, familial status, or other protected characteristics.
• Case-by-Case Basis Recommended: Many eviction records are contextual (e.g., evictions due to economic hardship or landlord retaliation). Courts and fair housing advocates recommend landlords consider the full context and applicant explanations rather than applying blanket denials.

Best Practices for Denying Applicants With Prior Evictions

To protect your business and remain compliant with New York laws, consider the following best practices when screening applicants with prior evictions:

1. Establish Clear, Written Screening Criteria

• Define your criteria regarding prior evictions clearly in your tenant screening policies. For example, specify the look-back period (e.g., no evictions within the last 3-5 years).
• Apply these criteria consistently to all applicants to avoid claims of discrimination.

2. Use Reliable and Up-to-Date Background Screening Services

• Use tenant screening companies that comply with New York’s consumer reporting laws and provide accurate eviction records.
• Request and review the full record or court files if necessary to understand the nature of the eviction.

3. Conduct Individual Assessments

• Review the circumstances of the eviction. For example, was the eviction due to non-payment during a period of financial hardship? Was the applicant proactive in resolving the matter?
• Consider positive rental history or references that may mitigate past evictions.

4. Provide Adverse Action Notices When Denying Applicants

• If you deny an applicant based on information in a consumer report, provide the required adverse action notice detailing the source of the eviction record.
• Inform the applicant of their right to dispute inaccurate or incomplete information.

5. Avoid Discriminatory Practices

• Do not consider eviction history differently for applicants of different races, ethnicities, family status, or other protected classes.
• Train staff on compliance with New York State and federal fair housing laws.

Summary

In New York, landlords have the legal right to deny rental applicants with prior evictions, provided the decision complies with fair housing laws and tenant screening regulations. Applying consistent, non-discriminatory policies and conducting thoughtful, individualized review helps avoid legal exposure and supports fairer tenant selection processes.

By integrating these practices, you can responsibly manage risks associated with prior evictions while upholding your obligations as a landlord in New York’s complex rental market.