Some homeowners’ associations require that prospective tenants’ applications and credit reports be reviewed by the board of directors. This could create a problem with fair housing and state laws. Landlords are required to provide applicants with the written criteria by which they will be screened to see if they are qualified to lease the prospective property. If the applicant meets those criteria, the landlord cannot deny tenancy. Most HOAs will accept a screening report from a professional screening company documenting that the future occupant meets the screening criteria, but if the landlord’s screening criteria is met, and the HOA turns down the application, all parties could potentially be sued by the applicants and fined by fair housing.
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Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.