Valid Reasons For A Property Manager To Deny A Rental Application

It is the property manager or landlord’s responsibility to select the right tenant who will pay the rent on time, maintain the property and uphold the terms of the lease. While a majority of the applicants will comply with this, there are a handful who may not, and can end up as a costly liability.

But there are fair housing laws that gives the applicant certain rights and the property manager or landlord has to ensure that their screening processes are not discriminatory. Under BC’s Human Rights code, protective characteristics include race, color, ancestry, sexual orientation, any physical or mental disability, religion, marital status and a number of other characteristics.

Here are 7 valid reasons a property manager can deny an application for rental:

  1. Insufficient income
If applicants cannot prove that the monthly rent can be covered, then it is likely that they will struggle to afford the rent. Ideally, the applicant should have a monthly income that is 2.5 to 3 times the rent. Getting a history of pay stubs and bank statements can determine affordability.

  1. Poor Credit history
Poor credit history may indicate that the applicant may have problems paying bills on time. Frequent late payments and high levels of debt can reveal financial irresponsibility.

  1. Unfavorable Rental history
Getting references from previous landlords is very important when considering an applicant. If the tenant has had previous landlord issues, been evicted on occasion or violated material terms of the lease, chances are that it will happen again.

  1. Unfavorable References
Negative references from previous landlords, employers and personal contacts can lead to a refusal. By following up on the references provided, a property manager can get an accurate idea on the character of the applicant, especially if the references are unfavorable.

  1. Incomplete application
If fields on an application are left blank, especially important ones, then there is no reason why the application should not be denied. Failure to complete the application could suggest information that the applicant does not want disclosed.

  1. Rent and deposit payment issues
When the applicants fail to pay the required deposit fees or first month’s rent and other fees that may be required on signing the lease, they demonstrate a level of financial unreliability, and this could bring problems in the future when it comes to paying the monthly rent on time.

  1. Smoking policy
If the property has a no smoking policy and the applicant is a smoker, then this could be grounds for denial. 

  1. Pets policy
A no pets policy can also result in the denial of an application when the applicant has a pet.

  1. Occupancy limit violations
When a property has a certain limit on the tenancy agreement such as 2 persons per room, the applicant has to abide by this rule. An applicant with more than 2 persons per room can be denied.

  1. Insufficient rental history
An applicant who has no or insufficient rent history can be denied the tenancy, especially if the property manager requires a proven track record that reflects responsible tenancy.

As a leading, licensed property management company, VIRANI RENT + MANAGE helps our clients with all aspects of the management of their rental properties. Find out more here about our services