When an applicant misses the mark on rental criteria, the goal isn’t to “find a way to say yes at any cost.” It’s to make a fair, consistent, and compliant decision that protects the asset while respecting applicant rights.
At TGN Property Management, we follow a documented process that balances risk management with empathy—an approach our Los Angeles Property Managers recommend for minimizing vacancy, legal exposure, and reputation risk.
Quick Answer
- Use objective, written criteria and apply them consistently.
- Decide fast and document thoroughly—approve, conditionally approve, or deny.
- Offer conditional approvals when lawful (e.g., guarantor) and avoid options not allowed by California or Los Angeles rules.
- Provide required notices (including FCRA adverse action notices when using credit reports).
- Stay compliant with LA-specific laws like the Fair Chance Housing Ordinance and source-of-income protections.
This structure creates a predictable applicant experience that Los Angeles Property Managers recommend and owners appreciate.
Step 1: Start With Clear, Written Rental Criteria
Clarity reduces disputes. Before marketing a unit, TGN Property Management publishes criteria that typically include:
- Minimum verifiable income (e.g., 2.5–3x rent, adjusted when a tenant has a voucher)
- Credit history standards and any required trade lines
- Rental history expectations (no material, recent lease violations)
- Identity verification and employment verification
- Pet/animal policy (with ADA/FHAA-compliant accommodations process)
Crucially, we ensure these standards comply with fair housing law, local ordinances, and industry best practices our Los Angeles Property Managers recommend. We train teams to apply criteria consistently to every applicant.
Step 2: Triage Outcomes When Criteria Aren’t Met
When an applicant falls short, we choose one of three paths—always based on documented facts, never on subjective impressions.
- Denial (Non-Negotiable Issues)
- Fraudulent documents, unverifiable identity, or material misrepresentation
- Disqualifying rental history like recent evictions where legally reportable
- Clear policy thresholds not met with no permissible accommodation Action: Provide a written adverse action notice (if a consumer report was used), stating factual reasons and FCRA disclosures. This is what Los Angeles Property Managers recommend to reduce disputes and maintain transparency.
- Conditional Approval (Lawful Risk Mitigation) When deficits are modest and law allows, we may offer:
- Qualified guarantor/co-signer meeting stricter income and credit standards
- Proof of additional reserves (e.g., recent bank statements) when appropriate
- Renter’s insurance and enrollment in automatic ACH payments
- Shorter initial lease term with on-time-payment review for renewal We will not offer “extra fees” or “non-refundable deposits,” which are improper in California, and we comply with California’s new security deposit caps.
- Alternative Unit or Reapply Later If an applicant nearly qualifies but fits better at a different price point or date, we might:
- Offer a lower-priced unit (if available)
- Invite the applicant to reapply once a specific, measurable criterion is met (e.g., six additional months of employment history)
California and Los Angeles Compliance You Can’t Ignore
Compliance is where strong processes shine. Here’s what our Los Angeles Property Managers recommend and TGN Property Management follows:
- Fair Chance Housing (City of Los Angeles): Restricts the use of criminal history in housing decisions. If criminal background information is considered at all, strict timing and notice requirements apply. We follow the ordinance and use individualized assessments only when lawful.
- Source of Income: We never deny based on housing vouchers or lawful subsidies. Income multiples are calculated per program guidelines, not on gross rent alone.
- Security Deposits: California generally caps residential security deposits at one month’s rent (with limited small-landlord exceptions). We stay within current limits and do not use “non-refundable” deposits.
- Adverse Action Notices (FCRA): If we take any adverse action in whole or in part based on a consumer report (credit, screening), we issue the federally required notice with the screening company’s contact details and a summary of rights.
- Assistance Animals: Not pets. We process reasonable accommodation requests in line with Fair Housing guidance—no pet rent or pet deposit for assistance animals.
Following these guardrails is not optional. It’s the risk control Los Angeles Property Managers recommend to protect owners from costly claims.
A Lawful Conditional-Approval Toolkit
When it’s appropriate to offer a second chance, we use tools that align with California and LA rules:
- Guarantor/Co-Signer: Must meet higher income and credit standards, sign all required documents, and reside in the U.S. for enforceability.
- Verified Reserves: Recent statements showing adequate savings to cover unexpected expenses.
- Payment Discipline: Auto-pay enrollment, due-date reminders, and late-fee transparency.
- Shorter Initial Term: For borderline applicants, a 6–9 month lease with performance-based renewal criteria can reduce long-term risk without violating local rules.
- Education and Orientation: A move-in call to review building rules, trash/recycling, parking, and maintenance reporting—small steps that prevent violations.
We avoid legally risky “solutions” like charging extra application or pet fees beyond what law allows. This disciplined menu is exactly what Los Angeles Property Managers recommend.
How We Communicate Decisions (Without Burning Goodwill)
Even a denial can produce a positive experience when handled professionally.
- Be fast and factual: We notify applicants promptly and cite objective reasons that align with the published criteria.
- Provide lawful notices: FCRA adverse action letters when applicable, with instructions on disputing errors on consumer reports.
- Keep a door open: If reapplication is possible after a specific milestone, we say so clearly. This approach reduces negative reviews and supports fair access to housing.
Owners benefit from fewer complaints and cleaner audit trails—another reason Los Angeles Property Managers recommend a structured communications policy.
Special Scenarios and How We Handle Them
- Thin Credit or No Credit: Consider a guarantor and stronger income verification; international applicants may need alternative verification.
- Income Just Short of Target: Evaluate stability (tenure, industry), lawful subsidies, and reserves. Avoid blanket denials if an accommodation applies.
- Negative Landlord Reference: We look for patterns, not one-off conflicts. Material issues like unpaid rent or significant lease violations typically trigger denial.
- Pets vs. Assistance Animals: Pet criteria apply to pets only. Assistance animals follow accommodation processes with documentation review—not pet fees or deposits.
Documentation Owners Can Rely On
TGN Property Management keeps a secure, time-stamped record of:
- The published criteria in effect at the time of application
- All applicant-provided documents and verification outcomes
- Decision rationale linked to the criteria
- Copies of adverse action notices and timestamps
- Any conditional approval terms offered and applicant responses
Consistent documentation is what Los Angeles Property Managers recommend to defend fair decisions and demonstrate compliance if challenged.
TGN Property Management’s Workflow, End to End
- Publish criteria and advertise consistently
- Receive application and disclosures; collect lawful application fee
- Verify identity, income, employment, rental history, and credit per policy
- Run any permissible background checks in the correct sequence for Los Angeles
- Decide: approve, conditionally approve, or deny—within a defined SLA
- Issue required notices (including FCRA) and document the file
- If approved, complete lease, deposit (within California limits), and move-in orientation
- If conditional, execute addenda (e.g., guarantor agreement) before move-in
This is the predictable, transparent process our Los Angeles Property Managers recommend to keep vacancy low and risk lower.
Conclusion
Handling applicants who don’t meet rental criteria demands a balance: be fair, be fast, be compliant. TGN Property Management uses objective standards, lawful conditional approvals, and impeccable documentation—the exact approach Los Angeles Property Managers recommend—to protect your property and your reputation.Want our criteria template, adverse action checklist, or a quick compliance audit of your current process?
Contact TGN Property Management, and we’ll tailor a screening and decision workflow that fits your portfolio, your risk tolerance, and Los Angeles’s evolving rules.