Free Texas Tenant Selection Criteria Disclosure | Fillable PDF Form

📋 Texas Tenant Selection Criteria Disclosure

Required by Texas Property Code § 92.351 – Provide BEFORE Application

🚨 TEXAS LAW REQUIRES THIS DISCLOSURE

Texas Property Code § 92.351 mandates:

  • MUST provide written criteria to prospective tenants
  • BEFORE tenant submits application or pays any fees
  • BEFORE tenant provides personal information for screening
  • Penalties for non-compliance: Landlord may not collect application fee or use tenant’s personal information
  • Cannot charge application fee without providing this disclosure first

✅ What This Disclosure Must Include

Texas law requires landlords disclose ALL criteria used to evaluate applicants:

  • Credit history requirements (minimum score, credit check process)
  • Criminal history policies (what convictions matter, lookback periods)
  • Income requirements (minimum income, income verification)
  • Rental history criteria (evictions, late payments, landlord references)
  • Employment verification requirements
  • Application fee amount and refund policy
  • Any other factor used in screening decision

⚠️ Fair Housing Compliance

Selection criteria must comply with Fair Housing laws:

  • Cannot discriminate based on race, color, religion, national origin, sex, familial status, or disability
  • Apply criteria consistently to all applicants
  • Use objective, business-related criteria only
  • Consider reasonable accommodations for disabilities
  • Follow HUD guidance on criminal history screening

Tenant Selection Criteria Disclosure

Legal Authority: This disclosure is required by Texas Property Code § 92.351. Landlord must provide this information in writing to each prospective tenant before the tenant submits a rental application or pays any application deposit, application fee, or similar fee to the landlord.

Property Information

Landlord/Property Manager Information

I. CREDIT HISTORY REQUIREMENTS

Credit Score & History Criteria

Must disclose if you have minimum credit score requirement

Disclose which credit reporting agency will be used






II. CRIMINAL HISTORY REQUIREMENTS

Criminal Background Check Criteria

⚠️ HUD Guidance on Criminal History

Fair Housing Act considerations:

  • Cannot have blanket policy denying all applicants with criminal records
  • Must consider: nature of crime, time since conviction, evidence of rehabilitation
  • Arrests without conviction cannot be sole basis for denial
  • May have disparate impact on protected classes

III. INCOME REQUIREMENTS

Income & Employment Criteria

Common standard is 3x monthly rent. Must disclose your requirement.








Fair Housing requires accepting all legal sources of income





IV. RENTAL HISTORY REQUIREMENTS

Rental & Eviction History Criteria

V. OTHER SCREENING CRITERIA

Additional Evaluation Factors

VI. APPLICATION FEES & DEPOSITS

Fees & Financial Information

📋 Texas Application Fee Law

Texas Property Code § 92.351 requires disclosure of:

  • Exact amount of application fee
  • Whether application fee is refundable
  • What application fee covers (screening costs)
  • Must provide criteria BEFORE collecting fee

Enter $0.00 if no application fee charged





Amount to hold unit while application processes

Amount required at lease signing (disclosure, not collection)

VII. APPLICATION PROCESSING

Timeline & Procedures

Fair Credit Reporting Act requires adverse action notice if denial based on credit/background report

VIII. ADDITIONAL CRITERIA

Disclose ALL factors that influence selection decision

Signatures & Acknowledgment

✍️ Required Acknowledgments

Landlord certifies: All criteria used to evaluate rental applications are disclosed above.

Prospective tenant acknowledges: Received and reviewed this tenant selection criteria disclosure BEFORE submitting application or paying any fees.

📚 Tenant Selection Criteria Guide

Legal Authority: Texas Property Code § 92.351 requires landlords to furnish to a prospective tenant written information on tenant selection criteria. The information must be provided before the tenant submits a rental application or pays any application deposit, application fee, or similar fee to the landlord. Failure to comply means landlord cannot collect application fees or use tenant’s personal information for screening.

Why This Disclosure Is Required

Texas Legislature enacted § 92.351 to:

  • Protect tenants from wasting time and money on applications they won’t qualify for
  • Prevent landlords from collecting fees without clear screening standards
  • Ensure transparency in the rental application process
  • Help tenants make informed decisions before applying
  • Reduce discrimination by requiring objective, written criteria

When Must This Be Provided

Critical timing requirements:

⏰ MUST Provide BEFORE

  • Tenant completes rental application
  • Tenant pays application fee
  • Tenant pays application deposit
  • Tenant provides Social Security Number
  • Tenant authorizes credit/background check
  • Tenant provides any personal information for screening

Best practice timeline:

  1. Initial contact: Provide criteria when prospective tenant first inquires
  2. Property showing: Give written copy during or after tour
  3. Before application: Ensure tenant has reviewed criteria
  4. Tenant acknowledgment: Get signed acknowledgment of receipt
  5. Only then: Accept application and fees

What Must Be Included

Texas law requires disclosure of ALL criteria used to evaluate applicants. This includes:

✅ Required Elements

  • Credit history requirements: Minimum scores, negative factors, how no credit history handled
  • Criminal history policies: Types of convictions considered, lookback periods, individualized assessment factors
  • Income requirements: Minimum income ratios, acceptable sources, verification documents needed
  • Rental history criteria: Eviction policies, late payment tolerance, broken lease treatment
  • Employment verification: Required documents, minimum employment length
  • Application fees: Exact amount, what it covers, refund policy
  • Any other factor: Anything else that influences the decision

Credit History Screening

Common credit criteria landlords use:

  • Minimum credit score: Typically 580-640 for most rentals, though no legal minimum required
  • No credit history: Options include accepting with co-signer, higher deposit, or alternative verification
  • Negative items: Bankruptcies, foreclosures, collections, judgments, late payments
  • Lookback periods: Most common is 7 years (standard credit reporting period)
  • Recent activity: Recent negative items weighed more heavily than old items

Fair and reasonable credit policies:

  • Use objective, measurable criteria (credit scores rather than subjective judgments)
  • Consider context (medical debt, identity theft, COVID-19 hardship)
  • Allow applicants to explain negative items
  • Provide path for those with no credit (co-signer, larger deposit)
  • Be consistent – apply same standards to all applicants

Criminal History Screening

HUD guidance on criminal history:

⚠️ Fair Housing Considerations

HUD Office of Fair Housing has stated:

  • Blanket policies that exclude anyone with criminal record likely violate Fair Housing Act
  • Criminal history policies can have disparate impact on protected classes
  • Must consider: nature of crime, time elapsed, evidence of rehabilitation
  • Arrest records (without conviction) generally cannot be sole basis for denial
  • Each application should receive individualized assessment

Legally defensible criminal history policies:

  • Specific crimes: Focus on crimes that pose actual risk to property or residents (violent crimes, property crimes, drug manufacturing)
  • Reasonable lookback: 5-7 years is common; longer for serious offenses
  • Individualized review: Consider rehabilitation, time since offense, nature of crime vs. housing environment
  • Written policy: Document the specific factors and how they’re weighed
  • Consistent application: Apply same policy to all applicants

Crimes that may justify denial:

  • Violent crimes against persons (assault, battery, domestic violence)
  • Sex offenses (especially with children in complex)
  • Arson or property destruction
  • Drug manufacturing or distribution (not simple possession)
  • Theft, burglary, fraud

Arrest vs. conviction:

  • Arrests without conviction: Generally cannot be sole basis for denial
  • Pending charges: May consider if charges are serious and recent
  • Convictions: Can be considered with individualized assessment
  • Sealed/expunged: Should not appear on background checks; cannot use if discovered

Income Requirements

Common income standards:

  • 3x rent rule: Most common – gross monthly income must be 3 times monthly rent
  • 2.5x rent: More lenient – sometimes used in competitive markets
  • 4x rent: More stringent – luxury or high-demand properties
  • Consistency required: Whatever standard used, apply to all applicants

Acceptable income sources under Fair Housing:

💼 All Legal Income Sources

Fair Housing law requires accepting:

  • Employment income (W-2 wages)
  • Self-employment income
  • Social Security benefits
  • SSI (Supplemental Security Income)
  • Disability payments
  • Veteran’s benefits
  • Retirement/pension income
  • Investment income
  • Alimony and child support (if documented)
  • Section 8 housing vouchers
  • Other government assistance

Cannot discriminate based on source of lawful income.

Income verification documents:

  • Employed applicants: Recent pay stubs (2-3 most recent), employment verification letter, W-2 from prior year
  • Self-employed: Tax returns (1-2 years), profit/loss statements, bank statements (3-6 months), CPA letter
  • Benefit recipients: Award letters, bank statements showing deposits, benefit verification
  • Section 8 vouchers: Voucher documentation, housing authority contact

Rental History Criteria

What landlords commonly check:

  • Previous evictions: Most landlords check 3-7 year history
  • Late payment patterns: Frequency and recency of late rent
  • Lease violations: Notices, complaints, rule violations
  • Property damage: Claims against previous security deposits
  • Broken leases: Early terminations, unpaid balances
  • Landlord references: Feedback from current and prior landlords

Eviction history considerations:

  • Filed vs. completed: Eviction filed but dismissed is different from actual eviction
  • Paid judgments: Some landlords accept if eviction judgment paid in full
  • COVID evictions: Many landlords give more leniency to 2020-2021 evictions
  • Context matters: Medical emergency, job loss, natural disaster
  • Time elapsed: 5+ year old eviction may not disqualify

First-time renters:

  • No rental history doesn’t automatically disqualify
  • Options: accept with co-signer, higher deposit, pay extra month upfront
  • Alternative references: dorm housing, college administrators, employers
  • Character references: personal references who can vouch for responsibility

Application Fees in Texas

Texas law on application fees:

  • No legal cap: Texas has no maximum application fee limit
  • Must be reasonable: Fee should reflect actual screening costs
  • Typical range: $30-$75 per adult applicant
  • What it covers: Credit report ($10-30), background check ($15-40), processing time
  • Disclosure required: Must state amount and what it covers BEFORE collecting

Refundable vs. non-refundable:

  • Non-refundable: Most common – fee not returned even if denied
  • Refundable: Rare – returned if application not processed
  • Partially refundable: May refund portion if unit rented to someone else before reviewing application
  • Must disclose policy: State clearly in criteria disclosure

Fair Housing Compliance

Protected classes under federal Fair Housing Act:

  • Race
  • Color
  • National origin
  • Religion
  • Sex (including gender identity and sexual orientation)
  • Familial status (families with children under 18)
  • Disability

Additional protected classes in some Texas cities:

  • Source of income (Austin, San Antonio)
  • Sexual orientation and gender identity (Austin, Dallas, Fort Worth, San Antonio)
  • Veteran status (some cities)

🚫 Fair Housing Violations

DO NOT include criteria that:

  • Discriminate based on protected class
  • Have no legitimate business purpose
  • Are applied inconsistently to different applicants
  • Create disparate impact on protected class without justification
  • Deny reasonable accommodations for disabilities

Objective vs. subjective criteria:

  • Objective (preferred): Credit score above 600, income 3x rent, no evictions in 3 years
  • Subjective (risky): “Good character,” “clean appearance,” “seems reliable”
  • Measurable standards: Use specific, measurable criteria that can be consistently applied
  • Written policy: Document criteria in writing and follow consistently

Best Practices for Landlords

✅ Landlord Best Practices

  • Provide early: Give criteria disclosure at first contact
  • Be comprehensive: Include ALL factors you actually use
  • Use objective criteria: Measurable standards, not subjective judgments
  • Be consistent: Apply same criteria to every applicant
  • Document everything: Keep records of who received disclosure and when
  • Update regularly: Review criteria annually; update as needed
  • Train staff: Everyone involved in leasing must know and follow criteria
  • Get legal review: Have attorney review criteria for Fair Housing compliance
  • Individualized assessment: Don’t have blanket bans; consider individual circumstances
  • Reasonable policies: Make sure criteria are necessary for property protection

Common Mistakes to Avoid

❌ Common Errors

  • Collecting fee first: Taking application fee before providing criteria disclosure
  • Incomplete disclosure: Not listing all factors actually used in decision
  • Oral criteria only: Not providing written documentation
  • Inconsistent application: Using different criteria for different applicants
  • No documentation: Not keeping proof that tenant received disclosure
  • Blanket bans: Automatic denial based on any criminal record or eviction
  • Discriminatory criteria: Requirements that unfairly impact protected classes
  • Hidden criteria: Denying for reasons not disclosed in writing

Penalties for Non-Compliance

If landlord fails to provide disclosure:

  • Cannot collect application fee: Must refund any fees collected
  • Cannot use personal information: Cannot run credit/background checks
  • Potential lawsuits: Tenant may sue for damages
  • Fair Housing violations: If criteria are discriminatory
  • Lost application: May have to return all fees and not use application

Adverse Action Notices

Federal Fair Credit Reporting Act (FCRA) requirements:

📋 FCRA Adverse Action

If deny based on credit/background report, must provide:

  • Written notice of denial
  • Name of reporting agency used
  • Agency’s contact information
  • Statement that agency didn’t make decision
  • Applicant’s right to dispute accuracy
  • Right to free copy of report within 60 days

Resources for Landlords

Where to learn more:

  • Texas Property Code: § 92.351 (tenant selection criteria requirement)
  • HUD Fair Housing: www.hud.gov/fairhousing
  • HUD Criminal History Guidance: “Guidance on Application of Fair Housing Act Standards to the Use of Criminal Records”
  • FTC – FCRA: www.ftc.gov (Fair Credit Reporting Act guidance)
  • Texas Apartment Association: Forms and training for landlords
  • Local Fair Housing Centers: Free training and consultation

⚖️ Legal Disclaimer

This form is provided for informational purposes only and does not constitute legal advice. Texas Property Code § 92.351 requires landlords provide written tenant selection criteria to prospective tenants BEFORE tenant submits application or pays any fees. Failure to comply means landlord cannot collect application fees or use tenant’s personal information. Selection criteria must comply with Fair Housing Act and cannot discriminate based on protected classes.

Fair Housing compliance critical. Criteria must be objective, job-related, and consistently applied to all applicants. Follow HUD guidance on criminal history screening. Provide individualized assessment rather than blanket bans. Document that tenant received disclosure before application. Keep records for at least 3 years.

Consult attorney for compliance. Have real estate attorney review selection criteria for Fair Housing compliance. Update criteria when laws change. For questions about Texas tenant selection criteria requirements, seek legal counsel.