Finding your next tenant in the Heart of the South isn’t the luck of the draw; doing so relies largely on your Texas rental application. Consider using afree rental application template to create, send, collect, and manage all of your applications with ease.
Let’s review the ins and outs of a Texas rental application, including screening processes, best practices, denials, pets, and more.
Information to Collect
A Texas rental application collects renter details to help you select your next tenant. They typically ask for:
- Names of applicants (including co-applicants/co-signers)
- Date of birth
- Phone number
- Social Security number
- Emergency contact
- Employment, rental, and income history
- Professional and rental references
- Current, previous, and past residences
- Pets
- Vehicles
- Smoking status
Since renters must provide sensitive information, laws regulate the types of information landlords can collect, the questions they can ask, and how they can use the information to make a decision.
We’ll dive deeper into application laws, but first, let’s walk through iPropertyManagement’s quick guide to successful tenant screening.
Quick Guide to Screening a Tenant
No two applications and situations are the same, but these six steps will help you establish a responsible tenant screening process.
1. Pre-Screen
Rather than sending every applicant your complete Texas rental application, most landlords use a pre-screener to sort through renter leads. After a renter finds your listing, a pre-screener collects the following information:
- Name, email, and phone number
- Employment
- Income
- Credit score (self-reported)
- Household size
- Move-in timeline
- Pets
- Smoking status
A pre-screener can’t substitute your online rental application, but it’s a smart way to review and qualify leads.
2. Conduct Showings
It’s time to open your doors and meet with potential renters. Show the rental by conducting walkthrough tours or hosting an open house.
3. Distribute and Collect Applications
After generating interest through online listings and in-person property showings, send your Texas rental application to interested renters. When completed, collect the application and fees. Make sure applicants sign the consent and acknowledgement section!
Texas Application Laws
The Texas Fair Housing Act outlines all rental application rules and landlord-tenant rights in the Lone Star State.
Source of income: Landlords can consider a renter’s source of income. However, some local areas, such as Austin, consider source of income a legally protected characteristic.
Criminal & eviction history: You can consider a renter’s criminal and eviction history, and there are no look-back periods in Texas.
Sexual orientation & gender identity: These traits aren’t protected under Texas law, meaning you can legally factor them into your decision.
Portable tenant screening reports: Texas allows landlords to use portable tenant screening reports, but you’re not required to accept them.
Pets, ESAs, and Service Animals
More than half of all Texas households own a pet, meaning it’s time to add a section for animals to your Texas rental application.
Even if you don’t plan to allow pets, you can’t discriminate against applicants who have an Emotional Support Animal (ESA) or service animal. Rest assured, tenants are liable for damages caused by their animals.
Pet information: Use your application to ask if they have any animals and inquire about their name, service status, breed, and size.
Fair Housing Act: This law protects applicants with ESAs/service animals, and prohibits landlords from:
- Charging them a pet deposit, pet rent, or pet fee
- Denying an applicant based on the ESA/service animal’s breed, size, or weight
Federal Application Laws
Whether you’re in Austin or Arlington, or even Atlanta, Albuquerque, and Anchorage, all landlords in the U.S. must follow these four federal application laws:
Fair Credit Reporting Act (FCRA): Landlords need an applicant’s written consent before running a credit check. If you deny an applicant based on credit history, you must inform them (Fair Credit Reporting Act).
Equal Credit Opportunity Act (ECOA): The ECOA protects renters who have received public assistance. This law regulates how landlords assess credit reports and outlines reporting guidelines for applicants (Equal Credit Opportunity Act).
Fair Housing Act (FHA): Landlords, property managers, and employees who select renters can’t deny housing or ask questions based on these protected characteristics:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status
- Disability
This law prohibits discriminatory advertising and unequal rental terms (Fair Housing Act).
Americans with Disabilities Act (ADA): Landlords can’t discriminate against or deny an applicant solely based on a disability, and they must accommodate the renter’s condition (Americans with Disabilities Act).
4. Use a Third-Party Screening Service
Protect your investment by performing a credit check and/or criminal background check. Use a free tenant screening service to screen renters with confidence.
5. Check Application References
Remember those references you collected in your Texas rental application form? Make good use of them by asking the applicant’s past landlords or employers these sample questions:
- Did the tenant ever break the lease, or come close to it?
- Can you recall any missed rent payments?
- What was the tenant paying for monthly rent?
- Did the tenant cause property damage?
- Would you rent to this tenant again?
6. Approve or Deny Applications
Time to review the information and make a decision? Accept multiple applications on a first-come, first-served basis based on:
- Rental history: If there’s not enough rental history, they might need a co-signer.
- Rent-to-income ratio: Your listing’s rent should be less than 30% of the renter’s gross income.
- Credit score: Most landlords set a minimum credit score requirement between 600 and 670.
- Fact check on rental application: Don’t take false answers lightly. This red flag is grounds for immediate denial.
Denial Process
Your denial process needs to be legally compliant and consistent to avoid discrimination claims.
In Texas, you can legally deny renters based on:
- Income
- Credit history
- Rental history
- Criminal background
- Incomplete/false answers
Denial notice: You’re not legally required to send tenant rejection letters in Texas.
Credit/Background denials: If you deny an applicant based on credit or tenant background check, you must send them an adverse action notice with the reporting agency’s name and contact information, and the tenant’s right to dispute errors.
Document storage: While not required by law, store denied applications and screening reports for a minimum of three years. These files can help defend against discrimination claims.
Avoiding Fraud
Rental application fraud has been on the rise in Texas since 2022. Protect your investment by:
- Taking red flags seriously, no matter how small they may seem
- Verify an applicant’s identity
- Cross-check documents
- Run credit, background, and eviction checks
- Confirm employment and income
