When leasing a property in The Natural State, an Arkansas rental application is one of a landlord’s most essential tools. With a free application template or an online service like TurboTenant, landlords can easily send, collect, and review applications online.
Let’s dig into the details of an Arkansas rental application. We’ll cover tenant screening, denial processes, and tips for avoiding fraud. To start, here are the best practices for creating your application.
Information to Collect
Whether you use an online rental application or a PDF template, your application form should collect the following:
- Personal info: Names (of applicants and co-signers), phone number, email, and Social Security number
- Financial details: Employment status and income history
- Rental history: Previous and current residences
- References: Employer and landlord contact information
- Animals: Pets and/or service animals
- Household details: Smoking status, vehicle details, emergency contact, and household size
You’ll be using your Arkansas rental application to collect sensitive personal information from renters. State and federal laws are dictating:
- The questions landlords can ask on the application
- The information landlords gather using applications
- How landlords use applications when approving or denying applicants
Before we list out these rental application laws, let’s review a guide to screening tenants like an expert.
Quick Guide to Screening a Tenant
Just like the renters themselves, every rental application is unique. Follow these six steps to cover the basics of smart tenant screening:
1. Pre-Screen
When renters land on your online listing, pre-screeners collect renter details, including:
- Name
- Phone number
- Income
- Employment
- Credit score
- Move-in date
- Household size
- Pets
- Smoking status
Landlords use pre-screeners to see which renters are a good fit before they apply. Pre-screeners aren’t a substitute for the Arkansas rental application, but they’re an excellent tool for sorting through leads.
2. Conduct Showings
Time for tours? Meet with potential renters in person by showing the rental and hosting an open house.
3. Distribute and Collect Applications
Share your rental application forms and collect them once completed. Check that applicants have submitted the application fee and signed the consent and acknowledgment.
Arkansas Application Laws
Rental application laws and landlord-tenant rights aren’t the same across every state. The Arkansas Code Annotated outlines the state’s rental application regulations.
In Arkansas, landlords are legally able to consider:
- Source of income
- Criminal history
- Eviction history
Portable tenant screening reports: Arkansas law allows landlords to use portable tenant screening reports, but doesn’t require their use.
Pets, ESAs, and Service Animals
Pets are a key priority for many renters when they’re searching for listings. If you want to attract these renters, you’ll need to add a section for pets and service animals in your Arkansas rental application.
Do you have a no animal policy? You can’t discriminate against applicants because they have a service animal or an Emotional Support Animal (ESA). However, you can hold the tenant responsible if their animal damages the property.
Pet information: Include a section in your application for animals. Request proof of service status, name, and size.
Fair Housing Act: The FHA prohibits landlords from:
- Discriminating against applicants based on their service animal/ESA
- Denying housing based on the service animal/ESA’s breed, size, or weight
- Charging a pet deposit, pet fee, or pet rent for service animals/ESAs
Federal Application Laws
Here are four federal laws every U.S. landlord must comply with:
Fair Credit Reporting Act (FCRA): Applicants must provide written consent before landlords conduct credit checks. If you deny a renter due to their credit, you must notify the applicant (Fair Credit Reporting Act).
Equal Credit Opportunity Act (ECOA): The ECOA dictates how landlords assess credit reports, provides reporting guidelines for applicants, and protects individuals who receive public assistance (Equal Credit Opportunity Act).
Fair Housing Act (FHA): Landlords and employees selecting renters can’t discriminate against renters based on:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability
The FHA prohibits landlords from:
- Asking questions about these traits
- Using discriminatory advertising
- Offering unequal rental terms (Fair Housing Act).
Americans with Disabilities Act (ADA): Landlords can’t deny applicants solely based on a disability, and they must accommodate the renter’s condition (Americans with Disabilities Act).
4. Use a Third-Party Screening Service
Make tenant screening quick and simple by using an online service like TurboTenant to perform credit and criminal background checks.
5. Check Application References
Reach out to the applicant’s employer and rental references to learn more. Use these sample questions to gather the information you need:
- Do you recommend renting to this tenant?
- What was the tenant paying for monthly rent?
- Did they ever miss payments or accrue unpaid balances?
- How well did the tenant maintain the property?
- Was the house/apartment in good condition after move-out?
- Did the tenant ever violate the lease?
6. Approve or Deny Applications
Take after industry-leading landlords and accept multiple applications on a first-come, first-served basis. When selecting tenants, consider:
- Rent-to-income ratio: Calculate the applicant’s rent-to-income ratio, making sure the monthly rent is less than 30% of their gross income.
- Credit score: Landlords usually set a minimum credit score requirement of 600–670 to protect their investment.
- Rental history: When renters provide less than a year of rental history, consider requesting a co-signer.
- Fact-check the rental applications: False information is a red flag for rental application fraud, so always conduct due diligence to verify applications.
Denial Process
When you deny applicants, make sure your process is consistent and legally compliant for all renters. Valid reasons for denying an Arkansas rental application include:
- Insufficient income
- Negative credit history
- Adverse rental history
- Results of a tenant background check
- Incomplete or false information
Denial notice: Arkansas law doesn’t require landlords to send denial notices or tenant rejection letters.
Credit/background denials: If you deny an applicant based on credit or background checks, the FRCA requires you to send them an adverse action notice, including:
- The reporting agency’s name and contact information
- A statement of the tenant’s right to dispute errors
Document storage: State law doesn’t require landlords to keep documents, but landlords should always retain denied applications and screening reports for at least two years. You can use these documents to defend against discrimination claims.
Avoiding Fraud
Don’t be fooled by rental application fraud. Avoid scammers and safeguard your investment with these five tips:
- Perform due diligence by verifying the applicant’s identity and documents
- Conduct credit, background, and eviction checks during tenant screening
- Confirm the renter’s employment and income
- Speak with past landlords about their experience with the tenant
- Watch out for red flags (inconsistent answers or questionable documents)
