What fair housing rules apply to tenant screening?

Tenant Screening and Fair Housing Rules in Michigan: A Guide for Landlords

When conducting tenant screening in Michigan, it is essential for landlords to adhere to fair housing laws designed to prevent discrimination and ensure equal housing opportunity. Michigan landlords must understand how both federal and state fair housing rules apply during the tenant screening process to avoid legal pitfalls and promote equitable rental practices.

Overview of Fair Housing Laws Applicable in Michigan

In Michigan, tenant screening is governed by a combination of federal and state laws that protect prospective tenants from discrimination based on certain protected classes. The primary legal frameworks include:

• Federal Fair Housing Act (FHA)

Prohibits discrimination based on race, color, national origin, religion, sex, familial status, and disability.

• Michigan Elliott-Larsen Civil Rights Act (ELCRA)

Expands protections to include age, marital status, sexual orientation, gender identity or expression, and lawful source of income, among others.

Together, these laws require landlords to apply tenant screening criteria consistently and fairly, without regard to protected characteristics.

Key Fair Housing Considerations During Tenant Screening

1. Consistent Application of Screening Criteria

To comply with fair housing principles, Michigan landlords should:

• Use the same tenant screening criteria for all applicants.

This includes standards relating to credit history, income verification, criminal background checks, rental history, and employment status.

• Avoid subjective or discretionary measures that could lead to discriminatory outcomes.

For example, rejecting an applicant based on “appearance” or “demeanor” can be problematic if it disproportionately affects a protected group.

• Apply income requirements uniformly.

Do not raise income standards or deposit requirements selectively for applicants of certain protected classes.

2. Non-Discrimination Based on Protected Classes

During tenant screening, landlords must not discriminate against applicants because of any protected characteristic under Michigan law, including:

• Race and color
• National origin
• Religion
• Sex or gender, including gender identity or expression
• Familial status (families with children under 18)
• Disability
• Age
• Marital status
• Sexual orientation
• Lawful source of income (e.g., housing vouchers, Social Security benefits)

For example, denying tenancy simply because an applicant receives income through a Section 8 voucher is prohibited under Michigan’s source of income protections.

3. Considerations Regarding Criminal Background Checks

While landlords in Michigan may conduct criminal background checks during tenant screening, they must do so in a way that complies with fair housing laws:

• Avoid blanket bans on applicants with criminal records.

Instead, consider the nature and severity of the offense, how long ago it occurred, and whether it is relevant to the safety and security of the rental community.

• Do not disproportionately exclude applicants of certain races or national origins through policies that have a discriminatory impact. Such policies may violate fair housing laws even if unintentional.
• Provide an opportunity for applicants to explain criminal history.

4. Credit and Income Checks

Landlords commonly review credit reports and income verification as part of tenant screening. Fair housing compliance requires:

• Using objective credit criteria that are directly related to the applicant’s ability to pay rent.
• Ensuring that credit score cutoffs or insufficient credit history do not disproportionately exclude protected groups unless justified by legitimate business reasons.
• Accepting lawful sources of income without discrimination. HUD and Michigan fair housing law recognize that denying applicants based on income derived from public assistance or vouchers is unlawful.

5. Reasonable Accommodations for Applicants with Disabilities

Fair housing rules require landlords to grant reasonable accommodations during tenant screening and leasing processes to applicants with disabilities:

• Allow applicants to request accommodations, such as submitting screening information in alternative formats or providing additional time for documentation.
• Modify screening criteria if necessary to account for a disability—for example, permitting a co-signer or guarantor when an applicant’s disability affects income verification.

Best Practices for Michigan Landlords During Tenant Screening

To reduce the risk of fair housing violations and maintain professional landlord operations, Michigan landlords should implement these best practices:

• Develop a written, standardized tenant screening policy.

Ensure the policy clearly sets out objective criteria on credit, income, rental history, and criminal background with consistent application to all applicants.

• Train staff and property managers on fair housing rules and proper screening procedures.
• Keep detailed records of screening decisions and documentation to demonstrate consistency and nondiscrimination.
• Use reliable screening services that comply with fair housing laws and provide objective information.
• Inform applicants early about screening criteria, fees, and procedures to promote transparency and trust.
• Respond promptly and fairly to scenarios that require reasonable accommodations or exceptions.

Summary

Michigan landlords must carefully navigate fair housing rules during tenant screening by:

• Applying screening criteria consistently and objectively
• Avoiding discrimination based on all protected classes recognized under Michigan law, including lawful source of income
• Considering the impact of criminal background policies on protected groups
• Ensuring accommodations for applicants with disabilities
• Documenting decisions and maintaining transparent procedures

By following these guidelines, landlords in Michigan help foster fair housing practices, comply with legal obligations, and contribute to equitable access to housing for all prospective tenants.