Comprehensive Tenant
Screening Strategies
Find the right tenants for your property. Implement effective screening methods to ensure reliable and responsible occupants.
If you’re a landlord or property manager in Washington State, understanding tenant screening laws is crucial to protect your business. This article outlines Washington’s statewide tenant screening requirements – including the “first-in-time” application processing concept, mandatory disclosure of screening criteria (per RCW 59.18.257), handling of portable screening reports, and key obligations under the Fair Credit Reporting Act (FCRA). We then delve into Seattle-specific laws, such as the city’s ban on using criminal history in housing decisions (Fair Chance Housing Ordinance), enforcement of Seattle’s own first-in-time rule, and new rules for adding roommates under Seattle Municipal Code 7.24.031–7.24.032. Finally, we offer best practices for compliance – from documenting your rental criteria and issuing adverse action notices to screening guarantors and ensuring fair housing compliance in your advertising.
Why Just-Cause Eviction Laws Make Screening Even More Important
With Washington’s “just cause” eviction reforms and higher barriers to removing tenants, thorough screening matters more than ever before. Since landlords must now must cite specific legal reasons to evict and often cannot simply decline to renew – and tenants can challenge terminations of tenancy in court with free legal assistance – preventing issues up front by verifying income, rental history, credit, and references is a landlord’s strongest safeguard against costly disputes.
Washington State Screening Essentials
Washington landlords must adhere to clear, statewide rules that promote fairness and transparency in tenant selection. Before diving into specific requirements, it’s important to understand why these measures exist and how they protect both you and your applicants.
Application‐Fee Limits
State law caps tenant application fees at cost—landlords may recoup things like credit‐report charges or staff time, but landlords cannot mark up or profit from screening fees. The amount charged must also match the “customary costs” charged by third‐party screening services in local area, and an itemized receipt showing how the fee was calculated must be provided.
Written Screening Criteria Are Required
Landlords must provide every prospective tenant with a clear, written list of screening factors—such as income requirements, credit score minimums, eviction history limits, and criminal record considerations—before collecting any fees. Sticking to those stated criteria for each application helps prevent claims of arbitrary or discriminatory decision-making.
Landlords Must Disclose Portable Screening Report Policies
Washington allows tenants to purchase a Comprehensive Reusable Tenant Screening Report and reuse it for multiple applications within 30 days. If landlords opt to accept these portable reports, they may not charge the applicant for running their own checks; if they decline them, that policy must be disclosed up front. Clarity on this point helps applicants understand potential costs and avoids unexpected fees as well as hard credit inquiries.
Special Rules Apply for Agreements to Lease and Waitlists
Any signed “agreement to lease,” hold‐harmless form, or paid waitlist entry that commits a landlord to rent must be treated as a completed application under state screening rules. The landlord must give their written screening criteria before taking a fee, timestamp these agreements, and process them in order—just as landlords would for standard rental applications. A cap of 25% of the first month's rent also applies to any fee or deposit, and any fee or deposit must be credited to the tenant's account if the tenant moves in.
Don't Forget The Adverse Action Notice
Any time a landlord denies an application—or approves it only with conditions (e.g., co-signer or higher deposit)—based on a consumer report, an Adverse Action Notice must be sent. The notice must list which criteria weren’t met, give the screening agency’s contact details, and explain the applicant’s right to dispute inaccuracies. Federal rules treat nearly all screening data as a consumer report and there are no consequences for issuing a notice when no notice was required, so it’s smart to issue notices whenever taking any adverse action—but be sure each notice states the specific reasons for that decision.
Seattle Screening Essentials
Landlords and property managers handling properties in the city of Seattle need to navigate an extra layer of screening regulations designed to expand housing opportunity and curb bias. The following ordinances uniquely shape how tenant screening works inside city limits.
Fair Chance Housing
Seattle’s Fair Chance Housing Ordinance bars landlords from imposing blanket bans on criminal history, but it does not entirely forbid considering an applicant’s past convictions. The only exception is for individuals listed on Washington’s public sex‐offender registry, and even then landlords may not automatically refuse to rent—landlords must first conduct an individualized assessment before taking any adverse action.
That individualized assessment requires the landlords to evaluate the specifics of the conviction—its nature and severity, how much time has passed since the offense or release, any evidence of rehabilitation (such as counseling, training, or steady employment), and whether the conviction bears a real relationship to tenant or property safety. Seattle cannot simply insert a “no criminal history” clause into written criteria or application forms; instead, landlords must remove any blanket exclusions and assess each record on its own merits.
landlords should document their reasoning in writing, outlining why the risk posed by a particular conviction justifies a denial or condition. The Ninth Circuit’s decision in Yim v. Seattle struck down the city’s outright ban on criminal‐history inquiries but affirmed that housing providers must perform and record a tailored analysis before acting. Moreover, HUD’s 2016 Guidance on the Use of Criminal Records under the Fair Housing Act warns that any policy resulting in a disparate impact on protected classes must be justified by a substantial, legitimate, nondiscriminatory interest and that less discriminatory alternatives must be considered.
First-in-Time (SMC 14.08.050)
Under the city’s first-in-time rule, landlords must post all screening criteria in advance, timestamp each completed application, and offer the unit to the first applicant who meets those criteria. Only if that tenant declines or fails to sign a lease within the allowed timeframe may the landlord move on to the next qualified applicant.
Note, the SMC does not expressly prohibit running parallel applications, only that screening be run and offers be presented in the chronological order required; however, because of the potential for adverse impact on later applicants, it is strongly advised to disclose any parallel processing in writing and obtain informed consent from later applicants. In cases where multiple comparable units are available, for example, later applicants may agree and see this as a benefit. By contrast, when there is only one unit available, later applicants may see this as a waste of money and excessive credit inquiry.
Roommate & Family Additions (SMC 7.24.031–032)
Seattle tenants have the right to add roommates or “immediate family” members under specific rules. Unrelated roommates may be screened and required to sign the lease or vacate if they refuse. By contrast, immediate family members—broadly defined to include spouses, domestic partners, relatives, and dating partners—cannot be denied or compelled to sign, and they may assume the lease if the original tenant leaves. This expands upon the general prohibitions against discriminating based on family status under federal and state constitutional and human rights law.
Special Rules Apply for Agreements to Lease and Waitlists
Like with state law, Seattle’s First-in-Time ordinance treats any signed lease agreement, option to lease, or paid waitlist placement as a formal application. Landlords must timestamp these commitments upon receipt, screen them against posted criteria in order, and cannot charge extra for waitlist placement beyond actual screening costs. The added significance here is the relation back to the first-in-time requirement. If, for example, an already-screening later applicant is offered a waitlist position for future vacancies, they applicant must retain their chronological ordering as of their original application, which is deemed "completed." Parallel offerings to waitlist members are not expressly prohibited but disclosure is strongly encouraged as leasing must still occur in chronological order.
Other Screening Best Practices
While it can be tempting to rely heavily on “landlord’s discretion” or “case-by-case” language, these policies leave landlords exposed to adverse impact arguments and inconsistent policy application. Putting legal requirements into practice takes thoughtful policies, consistent procedures, and rigorous documentation. These proven steps will help turn compliance into a competitive advantage by streamlining applications and reducing disputes.
Documentation & Disclosure
Maintain a written, objective set of screening criteria and provide it to every applicant before any fee is collected. When in doubt, err on the side of over-documenting as recent case law has shown courts disfavor adverse actions not rooted in expressly disclosed criteria. Consistency in documenting and applying these standards also helps demonstrate non-discrimination.
Consistently Issue Clear Adverse Action Notices Timely
Whenever an application is denied or approved with special conditions, send a notice detailing which criterion was not met and outlining the applicant’s rights under the FCRA. Retain a copy for compliance records. Note, while many property management and screening software providers purport to include adverse action notice forms, they are not always compliant. Landlords should be sure to double check the language in this often-overlooked form.
Vet Co-Signers and Guarantors Like Applicants
If co-signers are permitted, apply the same screening process to them as to primary applicants—verifying income well above rent levels and securing a signed guaranty addendum that holds them jointly responsible for rent and damages. The rules for guarantors who are secondarily responsible and not jointly and severally liable are less clear, however, it can't hurt from a compliance perspective to treat them the same as applicants and co-signers.
Ensure Fair Housing Compliance in Practice
Review all advertising and application forms to remove any language or criteria that could deter protected classes (e.g., “no Section 8,” “no criminal history,” or “ideal for singles”). Apply every policy uniformly and provide reasonable accommodations for disabilities. Remember, it is not enough that the text of policies are "fair," the policies must actually be fair as applied.
Disclaimer
This article is provided for informational, educational, and marketing purposes only and does not constitute legal advice. The content is current as of its publication or last review and may not reflect the latest legal developments. Do not rely solely on this information—consult a qualified attorney regarding your specific situation.
Get Support for Screening Compliance
If you’re a landlord or property manager who needs help reviewing or updating your screening policies, criteria, or forms, contact our law firm. We’ll help you ensure your tenant screening process complies with all current Washington State and local laws, so you can confidently find and keep qualified tenants.
