Are You Blacklisted from Renting?

Dotted all the i’s and crossed all the t’s in search of the perfect apartment but still hitting a dead end when it comes to securing one? You may be wondering whether or not you’ve managed to procure a spot on the dreaded “tenant blacklist.” Being blacklisted from renting can make finding housing difficult, but understanding why it happens and how to address it is the first step to moving forward.

But are tenant blacklists real? More importantly, are they even legal?

What is a Blacklisted Tenant?

A blacklisted tenant is someone who is, for one reason or another, listed in a database that landlords share to weed out undesirable tenants. The landlords use this list to report issues with tenants including extensive complaints, disputes concerning damage to the premises, eviction history, failure to pay rent, or if the tenant has otherwise been named in any apartment-related court cases. Being blacklisted has been known to significantly impact one’s chances of renting a decent place.

The Legality of Blacklists

Despite recents efforts in places like New York to prohibit blacklisting, its legality largely depends on state laws. Even if blacklists are illegal in certain states, landlords and rental agents can still maintain them for their own personal reference. And while housing laws prohibit discrimination due to race, religion, sex, and disability, they don’t prevent landlords from using court or financial information to deny tenants housing.

If this seems like a catch-22, that’s because it is. Until the legislation catches up, second-party companies like Equifax and TransUnion are able to sell information to landlords regarding court cases where a tenant was named as a defendant due to eviction. Because of this, landlords can still use this information in combination with a credit report and/or bad references to paint a picture of a tenant’s past behavior. Whether they go on to create an “official” blacklist or bad tenant list is besides the point, since these considerations still raise red flags for many landlords.

Think You’ve Been Blacklisted?

If your credit is good, you’ve maintained a good relationship with past landlords, you’re able to provide good references, and have had no past evictions, yet you’re still unable to find a rental, it’s possible that there is a concrete reason for it (outside of the nationwide rental shortage). The first step is to speak to the landlords who denied your application about the reasons for your rejection. This may not yield any concrete answers, but if you’ve been involved in a court case or a rental dispute, a property agent may disclose that as a potential reason for denial. Another option is to try and contact screening companies to see if there is a “tenant report” that contains information about your past and determine if said information is accurate.

Renters should also be aware of tenant rights and privacy laws in their state. As mentioned above, certain states are taking legislative steps to ensure tenants are not being blacklisted. In some cases, blacklists are flat-out illegal, as in New York. However, this is the exception rather than the rule, and many (if not most) states still allow blacklisting.

The best strategy for dealing with a potential blacklist is to have open communication with all potential landlords when applying for an apartment (preferably before they run a background check). If a court record exists of a housing or eviction dispute involving you, it’s important to clear the air and explain the situation to them in full. After all, most court cases involving landlords are not cut and dry, and there are often extenuating circumstances that need to be taken into consideration.

Additionally, it helps to provide referrals with your rental application. Positive references from past landlords can go a long way towards ameliorating something that may have happened in your past. A good track record as a tenant goes a long way, and many landlords will be willing to take that into consideration.

Until the legality of tenant blacklists is fully determined, tenants should stay informed about any potential negative information that may arise as part of a background check. If you’ve previously been involved in a court case due to a housing dispute or eviction, chances are your name will be flagged by a potential landlord sooner or later. Honesty is always the best policy here, and it’s better to tell them the truth up front. That way, even if you have been deemed a “bad tenant,” your past may not entirely dictate your future.