When screening rental applications in Portland, Oregon, landlords must adhere to specific guidelines set by HUD and the Portland Housing Bureau to ensure fair and legal practices. Here are key points for landlords to consider in order to save themselves from fines and messy lawsuits:
1. Application and Screening Criteria
- Public Posting: Landlords must publicly post all rental criteria, including screening criteria, rental amount, and security deposit amount, before accepting applications. Applicants should be aware of the terms of the tenancy and what is required to qualify for the rental home before paying a non-refundable application fee.
- First Come, First Served: Applications must be accepted on a first-come, first-served basis to prevent discrimination. This eliminates the practice of accepting multiple application fees and credit reports from different applicants, ensuring a fair process.
- Screening Fees: Any screening fees must be disclosed upfront and can only be collected if there is an available unit. Additionally, there are limits on screening fees to prevent overcharging. Looking for a resource? Local Portland screening company, Pacific Screening charges Living Room applicants $55 each.
2. Public Advertising
- 72-Hours Notice: Landlords must keep listings open for 72 hours before accepting rental applications when publicly marketing the property. This allows more people to view the property and prevents rushed applications.
- Accessibility: Listings must note if the unit qualifies as accessible housing, giving priority to applicants with mobility disabilities or other qualifying conditions.
3. Notice of Right to Request a Modification or Accommodation
- Landlords must inform applicants of their right to request modifications or accommodations for disabilities, such as bringing emotional support animals. Nationally, in 2023, the number one fair housing complaint was based on disability discrimination, which has consistently been a leading issue. Many of those complaints swirling around ESAs and accessible housing.
4. Income Criteria
- Income-to-Rent Ratio: Portland landlords can require that an applicant’s income be up to 2 times the rent (2.5 times for households priced less than 80% MFI). For applicants using a subsidy, the ratio applies only to the tenant’s portion of the rent.
- Source of Income: Did you know that source of income is a protected class in the City of Portland? That means that rent assistance and public benefits must be considered as proof of income, and landlords cannot discriminate against tenants using Section 8 vouchers.
5. Credit, Criminal, and Rental History
- Credit Reports: Criteria for evaluating credit must be disclosed, and disqualifications should be based on ability to pay rent rather than discriminatory reasons. Credit can be a tricky indicator of a person’s worthiness of tenancy, especially those who let other accounts slide to prioritize their housing.
- Criminal History: Landlords must set specific criteria for evaluating criminal history and conduct individualized assessments to avoid automatic exclusions. This has been one of the most controversial pieces of the Portland screening rules. Portland has 2 versions of screening criteria available for landlords 1) Low-Barrier and 2) Landlord’s Choice. Here is a link to the Application & Screening Pamphlet distributed by the Portland Housing Bureau for guidance.
- Rental History: Denials based on rental history require detailed explanations to applicants.
- HUD Guidance: Although it is currently allowed, HUD’s Spring 2024 guidance report highly encourages landlords to stay clear of utilizing credit history, eviction history and criminal records in their screening criteria. The report reminds us that these 3 categories historically have an “…unjustified discriminatory effect based on race, national origin, sex disability, or other protected characteristics.” A phrase commonly used to describe this is disparate impact.
6. Identification
- Acceptable Forms of Identification: Landlords cannot reject an application as incomplete if the applicant does not provide a social security number. Various forms of identification must be accepted. Documentation such as – SSN, Valid Permanent Resident Card, Immigrant Visa, ITIN, Non-immigrant Visa, Any government-issued ID regardless of expiration date, and any non-governmental ID that would permit a reasonable verification of identity.
7. Compliance and Updates
- Distribution: Landlords must give or direct all applicants to a copy of the Portland Housing Bureau’s Statement of Applicant Rights & Responsibilities Notice.
- Fines: Landlords need to stay informed about changes in local ordinances and regulations to ensure ongoing compliance. Failing to follow through with these requirements could cost a Landlord $250/violation plus actual damages and attorney fees.
8. Fair Housing
- Non-Discrimination: Adherence to fair housing laws is critical. Discrimination based on federally protected fair housing classes such as race, color, religion, sex, national origin, familial status, and disability will always apply. Here in Portland discrimination based on marital status, source of income, sexual orientation, and gender identity are also prohibited.
9. Notice of Denial
- Individual Assessment: Before denying an applicant, landlords must conduct an individual assessment and provide an Adverse Action Notice if the denial is based on information from a consumer report. Per the housing bureau’s Application & Screening Pamphlet, the landlord must consider the nature and severity of the incidents, the number and types of incidents, how much time has passed since the incident occurred and the age of the applicant at the time of the incident. Here at Living Room, we utilize our attorney as a 3rd party to support and guide us in the individual assessment process.
10. Record Keeping
- Documentation: Landlords must keep records of all applications and the screening process for compliance purposes.
By following these guidelines, landlords in Portland can begin to conduct screenings in a way that legally and fairly, provides equal opportunity for all potential tenants.
Living Room Property Management specializes in long-term, residential rentals: single-family homes, 2-4 unit plexs, privately owned condos and ADUs. If the rules around tenant screening feel overwhelming, it might be time to call in some help. If you are interested in learning more about Living Room’s property management services? Click here to request a rental quote and schedule a time to connect.
*Please note, this is not meant as legal advice. This is Living Room’s interpretation of the laws and rules related to screening applicants. Please consult an attorney when drafting a screening criteria.
