Your success as a property owner can hinge on placing the right tenants in your rental units. A big part of doing that is having a thorough screening process. However, Louisiana tenant screening has legal limitations. There are certain things landlords can and can’t do when screening tenants. To ensure compliance with the law, you need to understand the rules around tenant screening.
This post will cover some basic rules for screening tenants in Louisiana.
What You Need to Know About Louisiana Tenant Screening
Screening Fees
With background checks, credit checks, and more, tenant screenings can get costly. The costs can start to mount if you have a high number of people who don’t pass. As a result, landlords can charge screening fees to prospective tenants. Louisiana law also does not cap how much a landlord can charge for tenant screening. However, fees should be reasonable, and they should not be a profit-making activity.
Get Permission
Permission is an essential part of tenant screening. Some of the screening information may be private. That means you should obtain written consent before starting the screening process. Have all prospective tenants fill out a rental application. You should also outline your screening process and have them sign a consent form.
Protect Privacy
Tenant screenings can involve sensitive information. While you might need it for your screening process, you should not use it for any other purpose. Do not share the information with third parties without the tenant’s consent. Additionally, you should destroy the reports once the screening process is complete.
Fair Housing Laws
Having standards for the tenants you want in your buildings is perfectly reasonable. However, you cannot set standards that discriminate against certain groups. Landlords can’t discriminate based on religion, race, nationality, sexual orientation, familial status, or disability. Violations of the Fair Housing Act can be a serious problem for rental businesses.
Set Criteria
The best way to avoid violations of the Fair Housing Act is to set criteria for renters. Points to consider in the criteria include credit score, income, rental history, and criminal background. However, you need to make sure your screening guidelines do not have a discriminatory effect. Landlords should also document their criteria and ensure they apply equally to all applicants.
New Orleans Property Management
Do you need help managing rental properties in New Orleans? Click here to contact Redfish Property Management. We can help you with everything from tenant screenings to maintenance and evictions.
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