Your tenant screening process will clearly outline the criteria you are evaluating in order to find your next tenant, but does the order in which you process rental applications matter? In some regions, it’s required for landlords to approve qualified applicants on a first-come, first-serve basis. Learn more about this best practice in rental housing and tenant screening.
Are landlords required to process rental applications in the order they are received? Is first come, first serve the best practice for approving tenants? In this video, Kaycee Miller from Rentec Direct explains how the first come, first serve rental application process works and why it helps landlords stay compliant with fair housing laws.
You’ll learn how to avoid accidental housing discrimination, implement a clear tenant screening process, and protect your rental business. Whether you manage one property or hundreds, this is an essential tip for modern rental management.
Is First Come, First Serve Required When Approving Tenants? – Watch the Video
Is First Come, First Serve Required When Approving Tenants? – Video Transcript
Finding a new tenant, marketing your property, and approving a rental applicant are some of the instances in rental management where a landlord or a property manager puts himself at the most risk of violating a federal fair housing law, and participating in a discrimination process that they might not be aware of is happening.
That’s why it’s really important for landlords, property managers, investors, and all housing providers to really understand their federal fair housing laws, what can be considered discrimination and what they need to do in order to avoid discrimination in housing, at all costs.
One of the best things you can do when it comes to approving a rental applicant is following a process called the first-come, first-serve process. The first-come, first-serve process is where you approve the first qualified application that you receive, and that is who you offer your rental housing.
My name is Kaycee Miller. I work for Rentec Direct property management software. I’m also a landlord, a real estate investor, and I’ve been writing about landlord-related topics for over a decade on the Rentec Direct blog and other industry-related outlets.
The First Come, First Serve Rental Application Process
Today I want to talk about the process of first come, first serve when it comes to rental applications and approving your next qualified tenant.
The process tasks housing providers with processing rental applications in the order they are received and offering rental housing to the first qualified applicant. There are some cities and counties that have a law related to first come, first serve, and it is considered a best practice in rental housing.
How First Come, First Serve Can Help Prevent Housing Discrimination
The idea is that you can avoid disparate impact or unconscious discrimination, or perhaps unknown discrimination that might be happening without you even knowing it, by having a process that is very clear that you are approving the first qualified applicant in the order it was received.
First Come, First Serve Rental Application Process Explained
Now this usually pertains to rental applications. When you actually receive rental applications, you keep them in order of that they’re received, and then you process one. If they’re qualified, they get it. If they’re not qualified, then you move on to the next rental application. And that’s the process of how you go through this first come first serve rental application approval process.
Why this can be helpful in avoiding discrimination is because you’re not bringing any subjective opinions. For example, you will avoiding thinking, well, this one seems like they’d be better because their income is higher, or this one seems like they’d be less qualified because their credit score is lower even though it meets my minimum threshold.
First come, first serve takes that subjectivity out of your application approval process and makes it a very clear, cut and dry process.
Staying Compliant With Fair Housing Laws
When it comes to rental management, you always want to be thinking, do I have a very structured process that:
- Adheres to my federal fair housing laws
- Adheres to my local state laws as well and,
- Makes it very clear why I approved someone
You need to be able to say, this is why they were qualified to live in my rental property and this is why I offered them rental housing and am welcoming them into the opportunity of signing a lease with me. And more equally important, why someone might have been denied rental property.
Final Thoughts
Processing rental applications fairly and consistently is one of the best ways to protect your rental business and provide equal housing opportunities to all applicants. While only a few locations legally require a first come, first serve process, adopting this approach can help you stay compliant with fair housing laws and avoid the risk of unintentional discrimination.
By keeping a clear, structured screening process and approving the first qualified applicant, you’ll foster transparency and build trust with prospective tenants.
My name is Kaycee Miller. I work for Rentec Direct property management software. I’m always happy to talk about what it takes to be a great landlord, advice for property managers and give tips to renters as well.
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