A Philadelphia Landlord's Guide to Tenant Screening: Laws & Best Practices
Finding the right tenant is the foundation of a successful rental property investment. A great tenant pays rent on time, takes care of your property, and communicates effectively. But how do you find that ideal tenant while navigating the complex web of federal, state, and city-specific laws? For landlords in Philadelphia, the screening process is governed by a critical piece of legislation: The Renters' Access Act.
Understanding these rules isn't just good practice—it's essential for protecting your investment and avoiding costly legal trouble. This guide will walk you through the dos and don'ts of tenant screening in Philadelphia, helping you create a process that is both effective and fully compliant.
The Legal Framework: Fair Housing and the Renters' Access Act
Before diving into Philadelphia's specific rules, it's crucial to remember the foundation of all tenant screening: Fair Housing Laws. The Federal Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability.
A Note on Service Animals and ESAs
Under Fair Housing laws, animals that provide assistance to individuals with disabilities are not considered pets. This includes both Service Animals and Emotional Support Animals (ESAs) . You cannot charge a pet fee or deposit for these animals, and you must make reasonable accommodations for them. Denying an otherwise qualified applicant because of a legitimate assistance animal is a violation of federal law.
Philadelphia's Renters' Access Act: What Landlords MUST Know
Effective since October 2021, the Renters' Access Act established uniform guidelines to ensure fair access to housing. For landlords, this means you must follow a specific set of rules when evaluating applicants.
Crucial First Step: Before you accept a rental application or an application fee, you must provide the applicant with your uniform screening criteria in writing. This ensures transparency from the very beginning.
Breaking Down the Screening Criteria in Philadelphia
The Renters' Access Act is very specific about what you can and cannot consider when reviewing an application.
✅ What You CAN Screen For:
Landlords are still able to conduct a thorough review of an applicant's qualifications. Your screening criteria can include:
- Income Verification: You can (and should) verify that the applicant has a sufficient and reliable source of income to pay the rent.
- Rental History: You can look at an applicant's rental history, including references from previous landlords.
- Relevant Credit History: You are allowed to review an applicant's credit history for relevant information, such as a pattern of non-payment for housing or utilities.
- Evictions (with limits): You may only consider evictions that resulted in a judgment against the tenant within the last four years.
- Relevant Criminal History: Screening for criminal history is permissible, but blanket bans are discouraged in favor of an individualized assessment.
❌ What You CANNOT Use to Disqualify an Applicant:
The Act explicitly prohibits denying an applicant based on the following:
- Solely a Credit Score: You cannot have a policy that automatically denies every applicant below a certain credit score. The score can be part of a holistic review, but it cannot be the only reason for denial.
- Old Eviction Records: Any eviction filed four or more years ago cannot be considered.
- Certain Types of Evictions: You cannot use eviction records that were withdrawn, sealed, marked as satisfied, or did not result in a judgment in the landlord's favor.
- COVID-Era Financial Hardship: You cannot deny an applicant for failure to pay rent or utility bills during the COVID-19 emergency period (March 1, 2020 - March 31, 2022).
- Evictions Filed During COVID: Eviction cases filed during the COVID-19 emergency period are also off-limits, with a narrow exception for those involving violent criminal activity.
Our Compliant Process at TrustArt Realty
Navigating these regulations can be daunting. At TrustArt Realty, we've built our entire screening process around compliance and best practices. Our goal is to protect our property owners while treating every applicant fairly and consistently.
Our detailed screening criteria are publicly available and provided to every applicant at the start of the process. We invite you to review our standards here:
TrustArt Realty's Screening Criteria
By partnering with us, you can be confident that your properties are being filled through a process that is thorough, professional, and fully compliant with all Philadelphia laws.
What Happens if You Deny an Application?
If you decide to reject an applicant, the Renters' Access Act requires a clear process:
- Provide Written Notice: You must notify the applicant in writing (or electronically) of the rejection within three business days.
- State the Reason(s): The notice must clearly state the reasons for the denial and provide copies of any third-party reports (like a credit or background check) you used to make the decision.
- Allow for Reconsideration: The applicant has the right to dispute the information. They have 48 hours to inform you of their intent to request reconsideration and seven business days to provide evidence of incorrect information or mitigating circumstances.
Important for Landlords with 5+ Units: If a rejected applicant successfully disputes the information and demonstrates they can meet the tenancy requirements, you are required to offer them the next available comparable unit.
The Bottom Line
A rigorous, legally compliant tenant screening process is your first line of defense in property management. It protects you from liability, reduces the risk of future evictions, and helps secure reliable tenants for your investment. Staying compliant extends beyond screening to all aspects of the landlord-tenant relationship, including handling finances under the new security deposit installment law.
The rules in Philadelphia are clear but complex. If you're managing your own properties, it's vital to create a written policy based on the Renters' Access Act and apply it consistently to every single applicant.
Feeling overwhelmed? You're not alone. Partnering with a professional property management company like TrustArt Realty removes the guesswork and ensures your investment is in compliant, expert hands. Contact us today for a free rental analysis!
