Does a landlord have some flexibility in choosing which qualified applicant he wants to offer tenancy?
Picking an applicant who appears to be the best applicant can be a subjective judgment call based upon a landlord’s personal preference for one applicant over other qualified applicants. Such a practice violates fair housing anti-discrimination protections. The best practice has always been for a landlord to offer tenancy to the first qualified applicant.
Something to note is that recent legislation in two cities requires changes to landlords ‘practices for tenant screening and selection. As examples:
The City of Seattle has passed a First in Time (FIT) ordinance that requires Seattle landlords to accept the first qualified applicant for tenancy. Landlords must screen and make offers to the first qualified applicant based on the order of completed applications received. The ordinance was created to standardize the screening process by preventing landlords from using individual judgment in the application process. The ordinance is viewed as a way to reduce potential bias against protected classes.
The City of Portland has passed a new ordinance, “Fair Access in Renting (FAIR)” that among other changes in rental screening and qualification practices requires landlords to give 72 hours’ notice before accepting applications for a rental unit. Landlords are required to screen prospective tenants on a first-come-first served basis. The law also prioritizes people with disabilities to rent accessible units, places a cap on required income-to-rent ratios for tenants, and limits the use of credit and criminal history in tenant screenings.
Landlords are always advised to conduct regular due diligence for new and pending local ordinances and state landlord-tenant statutes that will require changes in tenant screening and selection requirements.