What fair housing rules apply to tenant screening?

Fair Housing Rules for Tenant Screening in New Mexico

When conducting tenant screening in New Mexico, landlords must adhere to federal and state fair housing laws designed to prevent discrimination and ensure equal housing opportunities. Understanding these rules is essential for landlords in New Mexico to avoid legal pitfalls and foster a fair rental market.

Overview of Applicable Fair Housing Laws

1. Federal Fair Housing Act (FHA)

The FHA prohibits discrimination in housing based on the following protected classes: - Race - Color - National origin - Religion - Sex (including gender identity and sexual orientation) - Familial status (presence of children under 18) - Disability

1. New Mexico Human Rights Act (NMHRA)

New Mexico’s state law expands protections to include all federally protected classes plus additional categories such as: - Ancestry - Sexual orientation (explicitly identified here) - Gender identity or expression - Marital status - Source of income (with certain exceptions) - Political affiliation - Age

Because New Mexico law is broader in scope, landlords must comply with both federal and state statutes.

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Tenant Screening and Fair Housing Compliance

Tenant screening is a crucial part of the rental process but must be handled carefully to avoid discriminatory practices. Here are key considerations for landlords in New Mexico:

Prohibited Practices in Tenant Screening

• Disparate Treatment

Landlords cannot apply screening criteria differently based on a tenant’s protected characteristic. For example, applying stricter income requirements to applicants of a specific race or national origin is illegal.

• Disparate Impact

Even neutral criteria can be discriminatory if they disproportionately exclude protected groups without a legitimate business necessity. For example, restricting applicants to a high credit score that many qualified individuals from protected classes cannot meet could be scrutinized.

• Source of Income Discrimination

New Mexico law makes it illegal to discriminate based on lawful sources of income, which includes housing vouchers or other government assistance programs. Landlords cannot reject applicants solely because they use housing assistance.

Best Practices for Screening Criteria

To ensure compliance, landlords should formulate clear, objective tenant screening criteria before reviewing applications:

• Income verification (e.g., requiring net income of 2.5 to 3 times the monthly rent)
• Credit history checks (with reasonable cutoff scores)
• Criminal background checks limited to recent and relevant offenses
• Rental history verification (checking for timely payments and lease violations)
• Employment verification

These criteria should be applied consistently to all applicants regardless of protected characteristics.

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Using Tenant Screening Services and Reports

Landlords often use third-party tenant screening reports that include credit, criminal, and eviction history. Under New Mexico and federal law:

• Landlords must obtain written consent from applicants before pulling credit or background reports.
• If an applicant is rejected based on information in the screening report, landlords are required to provide an adverse action notice that includes:

- The name, address, and phone number of the screening company - The reason for denial - The applicant’s rights to dispute inaccurate information in the report

Failure to provide proper notification can lead to liability.

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Accessibility and Reasonable Accommodation

For applicants with disabilities, landlords must make reasonable accommodations in their screening process, unless doing so would impose an undue financial or administrative burden:

• Examples include waiving certain rules related to credit or income verification if an applicant’s disability affects their financial situation.
• Landlords should communicate openly with applicants to understand accommodation requests and respond promptly.
• Denying an application outright without considering accommodation requests may violate fair housing laws.

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Record Keeping and Documentation

Maintaining thorough records of tenant screening decisions is vital in New Mexico for demonstrating compliance:

• Keep copies of screening criteria, applications, and evaluation notes.
• Document the reasons for any denial clearly and objectively.
• Retain records for at least three years, the typical statute of limitations period for discrimination claims.

Good record keeping helps landlords defend against potential allegations of discrimination.

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Summary: Key Takeaways for New Mexico Landlords

• Comply with both the federal FHA and the New Mexico Human Rights Act, which extends protections beyond federal law.
• Avoid discriminatory screening practices, including disparate treatment and impact.
• Do not reject applicants based solely on their lawful source of income.
• Apply screening criteria consistently and objectively to all applicants.
• Obtain written consent for screening reports and provide required adverse action notices.
• Provide reasonable accommodations in tenant screening for applicants with disabilities.
• Keep detailed records of screening decisions and applicant communications.

By following these guidelines, landlords in New Mexico can ensure their tenant screening procedures align with fair housing laws, promoting equal access to housing while protecting their rental business.

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If you would like more detailed information on how to establish compliant tenant screening policies or specific sample criteria tailored to New Mexico regulations, resources are available through the New Mexico Human Rights Bureau and the U.S. Department of Housing and Urban Development (HUD).