Finding the perfect apartment and submitting your rental application can be stressful. You hope and wait to hear back, expecting an acceptance so you can start making plans to move in. However, what happens if after initially approving your application, the landlord has a change of heart and denies you?
Can an apartment legally deny you housing after already accepting your application? Let's take a closer look at this issue.
Can an apartment change their mind after approving an application?
Yes, unfortunately landlords do have the ability to change their mind and deny a tenant even after initially approving their rental application. While it may seem unfair to applicants who were already celebrating their new home, property owners are well within their legal rights to revoke an acceptance up until the lease is actually signed.
Some common reasons a landlord might change their mind include discovering new negative information about an applicant, having another stronger applicant emerge, or simply having a gut feeling they no longer want to rent to that person.
Related: Landlord Refuses To Verify Rental History?
What reasons can an apartment give for denial after acceptance?
Landlords are not required to provide a reason for denying a rental application, even after a prior approval. However, some legitimate non-discriminatory reasons a landlord might give include negative references being received, incomplete or inaccurate information found on the application, inability to verify income or employment, or the applicant no longer meeting rental criteria like an income requirement.
On the other hand, it would be illegal for an apartment to deny housing based on membership in a protected class like race, religion, sex, disability status, or familial status. Applicants have rights against discriminatory treatment.
Does a verbal approval create a binding agreement?
Even if an apartment manager verbally told an applicant they were approved, this verbal acceptance alone does not create a legally binding agreement or guarantee the applicant will get the rental. Most states require rental agreements to be in written form, usually via a signed lease document, in order to be enforceable.
Without a signed lease, landlords maintain the right to change their decision at any time prior to both parties putting pen to paper. A verbal approval is more like an invitation to enter into a rental contract, not the finalized contract itself.
Can an applicant seek reimbursement of application fees?
If an apartment denies housing after approving an application, the denied applicant likely has grounds to request a refund of any application fees they paid. Most states allow fees to be collected only to cover the landlord's actual out-of-pocket costs for processing applications, running background and credit checks.
If the application is ultimately denied, the landlord has not incurred these predicted costs so a refund may be due. Some applicants have pursued small claims court for fee reimbursement if the landlord refuses to return unpaid deposits or fees after a change of heart.
What can an applicant do if they believe the denial was discriminatory?
If an applicant suspects they were denied housing post-approval due to illegal discrimination, they have options to seek legal recourse. They could file a complaint with the local fair housing agency to open an investigation into potential Fair Housing Act violations.
Documentation of interactions, statements made by the landlord, and any stated reasons for denial can help support allegations of discrimination. A fair housing attorney may also be able to review the denial for signs it unlawfully targeted membership in a protected class and advise the applicant on their rights.
What steps can applicants take to avoid getting denied after acceptance?
While there are no guarantees when it comes to avoiding post-approval denial of housing, applicants can take some proactive steps to strengthen their applications and make themselves more desirable tenants.
They should provide a complete application with all requested documentation, offer higher than minimum income, pay fees promptly, negotiate extensions if needed to find current employers, and get solid positive references.
Communicating regularly with the rental office during the process and having a co-signer may also help reassure landlords. With careful preparation and qualification, risk of denial can potentially be reduced.
Conclusion
In summary, while frustrating for applicants, landlords do legally have the ability to deny housing even after verbally or conditionally approving a rental application. The best defense is to submit the strongest application possible. If faced with post-acceptance denial, applicants can seek application fee reimbursement if applicable and investigate claims of potential discriminatory treatment through the proper legal channels.
