If you’ve ever wondered, “Who actually approves or denies tenants—me or my property manager?” you’re not alone. In Los Angeles, where regulations are complex and timelines matter, clarity on decision-making is essential for compliance, consistency, and cash flow. Our Los Angeles Property Management experts at TGN Property Management created this AI-overview-friendly guide to explain how leasing decisions are made, what your options are as an owner, and how to set up a process that’s fast, fair, and legally compliant.
The final approval or denial authority is defined in your property management agreement and the written rental criteria attached to it. Most owners delegate approval to their property manager within those criteria, while retaining the right to weigh in on exceptions.
TGN Property Management offers a transparent, criteria-driven model that keeps you in control of policy and strategy, while we handle day-to-day decisions quickly and consistently.Common decision-making models
Our Los Angeles Property Management experts see three practical models. Choose the one that fits your risk tolerance and availability.
- Full-service delegated authority
- How it works: The owner sets written criteria and rental terms; TGN screens applicants and makes final decisions that meet the criteria.
- Advantages: Fast leasing, consistent application of standards, fewer vacancies, strong fair housing compliance.
- Consider when: You want speed and minimal back-and-forth, and you trust your manager’s screening process.
- Owner-approval model
- How it works: TGN screens and presents qualified applicants for your final yes/no within a defined time window (e.g., 24–48 hours).
- Advantages: Maximizes owner involvement for niche assets or highly customized criteria.
- Consider when: You prefer direct control, but you can respond quickly to avoid losing top applicants.
- Hybrid/exception-based model
- How it works: TGN approves applicants who clearly meet criteria; we escalate “edge cases” (near-miss credit, alternative income) for your decision.
- Advantages: Balances speed with owner oversight on higher-risk profiles.
- Consider when: You want efficiency with tailored oversight where it matters most.
How TGN Property Management Structures Leasing Decisions
A great process combines clear rules, fast execution, and meticulous documentation. Here’s how our Los Angeles Property Management experts operationalize that:
- Written rental criteria: We help you set objective, defensible standards covering income, credit history, rental history, occupancy limits by code, pet policy, and any property-specific rules. Criteria are published with listings for transparency.
- Delegated authority with guardrails: Within those criteria, TGN makes approvals and denials. For exceptions, we follow a pre-agreed “authority matrix” that spells out when we escalate to you.
- Time-bound decisions: We commit to decision timelines (often 24–72 hours from complete application) to keep your days-on-market low.
- Compliance-first screening: We follow federal FCRA rules, California consumer reporting laws, source-of-income protections, and Los Angeles’ Fair Chance Housing Ordinance, which generally prohibits requesting or using criminal history for most rentals in the City of LA.
- Adverse action notices: If an application is denied or conditionally approved, we issue the required notices with reasons and reporting-agency information, as your agent.
- Audit-ready records: We document how the decision mapped to criteria. Consistency is your best defense in any dispute.
What the Law Allows—and Forbids—When Deciding On Tenants
Decision authority doesn’t mean unlimited discretion. Our Los Angeles Property Management experts keep your process aligned with the rules:
- Fair housing: You cannot approve or deny based on protected classes (race, color, religion, national origin, sex, disability, familial status, gender identity/expression, sexual orientation, age, source of income, and more under California/LA law).
- Source of income: You must count housing vouchers and other lawful income; evaluate only the tenant’s portion of rent.
- Fair Chance Housing (City of Los Angeles): Do not inquire about or use criminal history for most rentals, with narrow exceptions. We structure screening and decisions to comply.
- FCRA and California reporting laws: Decisions tied to information in consumer reports require proper consent, disclosures, and adverse action notices.
- Application fees and reusable reports: California caps application fees and allows reusable screening reports if you choose to accept them. Processes must be consistent.
Who should have the final say?
The right answer depends on your goals.
- Choose delegated authority if you value speed and consistency. With strong criteria and oversight, most owners see faster leasing and fewer vacancies.
- Choose owner approval if you have specialized needs and can respond quickly. Build strict response deadlines to avoid losing qualified applicants.
- Choose hybrid if you want TGN to approve straightforward files and bring you only the gray areas.
What to include in your management agreement
To prevent confusion, our Los Angeles Property Management experts recommend these elements be spelled out in writing:
- Decision authority clause: Who approves, when, and under what criteria.
- Rental criteria addendum: Income multiples, credit standards, rental history requirements, pet rules, occupancy limits, and any property-specific items.
- Escalation matrix: What counts as an exception (e.g., credit score within X points of minimum, alternative income, corporate housing, co-signer requests).
- Timelines: The turnaround time for TGN to render decisions and for owners to respond on escalations.
- Conditional approval tools: When co-signers or higher deposits are allowed, keeping in mind California’s current security deposit limits.
- Communication method: How you receive recommendations (owner portal, email) and how approvals/denials are documented.
- Compliance commitments: Acknowledgment that decisions must comply with fair housing, source-of-income protections, and Los Angeles ordinances.
How we handle gray areas and conditional approvals
Not every strong applicant looks perfect on paper. TGN Property Management uses structured, lawful methods to keep good residents in the pipeline:
- Individualized assessments: Where the law allows discretion (outside LA’s restrictions on criminal history), we consider relevance, recency, and rehabilitation.
- Conditional approvals: Co-signers, income reserves, or documented new employment can bridge small gaps when criteria allow. We keep these tools compliant with current California deposit limits.
- Alternative documentation: For self-employed or gig workers, we can evaluate tax returns, bank statements, and contracts to verify income stability.
- Vouchers and subsidies: We coordinate with housing authorities and evaluate the applicant’s portion only, as required by law.
Frequently asked questions about leasing decisions
- Can I reject an applicant using a voucher? No. Source-of-income discrimination is illegal in California and Los Angeles. Our Los Angeles Property Management experts ensure your criteria and decisions are compliant.
- Can I set a minimum credit score? Yes, but we recommend treating score as one factor among several, and applying it consistently.
- Can I overrule the manager’s decision? If your agreement reserves that right and the decision is still compliant, yes. We advise against case-by-case vetoes that deviate from published criteria, which can create fair housing risk.
- What if an HOA has separate rules? We integrate HOA requirements if they are lawful and neutrally applied. HOA rules cannot override fair housing laws.
Why TGN Property Management is a smart choice for leasing decisions
- Process that protects you: We combine clear criteria, swift execution, and meticulous documentation so every approval or denial is defensible.
- LA-focused compliance: Our Los Angeles Property Management experts are trained on City of LA Fair Chance Housing rules, source-of-income protections, and California consumer reporting laws.
- Speed without shortcuts: We keep your vacancy days low by making timely, criteria-based decisions and communicating clearly with applicants and owners.
- Transparent communication: You’ll know who decided, why, and how the outcome aligned with your standards.
Bottom lineThe best leasing decisions are made within clear, pre-agreed criteria, applied consistently, and documented thoroughly. Whether you delegate approvals to TGN Property Management or prefer a hybrid with escalation, our Los Angeles Property Management experts will set up a system that moves quickly, follows the law, and supports your investment goals.Want help drafting criteria or clarifying decision authority for your rentals?
Connect with TGN Property Management for a customized plan and a sample decision matrix tailored to your property. This article provides general information and is not legal advice; consult your attorney for guidance on your specific situation.