Are Rental Applications First Come, First Serve? All you Need to Know 

In today’s competitive rental market, finding the right tenant is more important — and complex — than ever. According to the 2023 American Community Survey (ACS), 42.5 million households in the United States are renter-occupied, making up a substantial portion of the housing market.

With such high demand, landlords often face a steady stream of applications, which raises an important question: Should rental applications be handled on a “first-come, first-served” basis?

In some cities, like Seattle, this policy is a legal requirement to promote fairness. However, across much of the U.S., landlords can select tenants based on various qualifications.

This article explores the pros and cons of "first-come, first-served" policies, the role of fair housing laws, and the key factors landlords consider in choosing the best-qualified tenant for their property — all while complying with regulations designed to prevent discrimination.

Understanding the “first come, first served” policy

The "first-come, first-served" policy in rental applications requires landlords to process applications in the order they receive them, offering the unit to the first qualified applicant who meets all requirements.

This approach is intended to create a straightforward, fair selection process by minimizing subjectivity. For tenants, it means that if they meet the landlord's set criteria and apply early enough, they have a clear shot at securing the rental.

Where is “first come, first served” mandated?

As of November 2024, Seattle, Washington and Portland, Oregon, are the primary U.S. cities that have implemented legally mandated “first-come, first-served” policies for rental applications. 

Seattle’s “first-in-time” rule, enacted in 2017, requires landlords to offer rental units to the first qualified applicant who meets all pre-established criteria. Similarly, Portland’s Fair Access In Renting (FAIR) ordinance, adopted in 2019, mandates that landlords process rental applications in the order they receive them to reduce bias in tenant selection.

While these policies are notable, they aren't widespread across the United States. Most states and cities don't have laws requiring landlords to follow a “first come, first served” approach. Landlords in these areas typically have the discretion to select tenants based on their own screening criteria, provided they comply with federal and state fair housing laws that prohibit discrimination.

It’s important to note that housing policies can evolve, and new regulations may emerge over time. For the most current information on rental application policies in specific states or cities, we recommend consulting local housing authorities or legal resources.

Pros of the “first-come, first-served” policy

The approach has several advantages for both landlords and tenants:

1. Reduces discrimination: The policy can reduce conscious and unconscious bias by requiring landlords to set and follow specific, objective qualifications. This is particularly important in markets where rental discrimination has historically affected vulnerable groups.
2. Clarity for tenants: Knowing that the first qualified applicant will be offered the unit adds transparency to the application process for prospective tenants. They know they have a fair chance if they meet the specified criteria and apply promptly.
3. Efficiency for landlords: By defining the criteria and accepting the first qualified applicant, landlords streamline the process, potentially reducing the time a property remains vacant.

Cons of the "first-come, first-served" policy.

However, the policy has some drawbacks, especially in competitive rental markets:

1. Limits landlord flexibility: The policy restricts landlords from choosing between multiple applicants who may meet the criteria but vary in other aspects, such as financial stability or rental history. In many cases, landlords may prefer to select the applicant they believe is the best fit, even if others are equally qualified.
2. Accessibility concerns: The policy may unintentionally favor applicants with more immediate access to listings or those who can apply quickly. For instance, applicants with stable internet access and flexible schedules may have an advantage over those who respond slowly, potentially disadvantaging lower-income renters.
3. Potential market inefficiencies: Sometimes, the "first-come, first-served" rule may slow the rental process. If the first applicant qualifies but delays decision-making or paperwork, it could increase vacancy time, affecting landlords' rental income.

The role of Fair Housing Laws in tenant selection

The Fair Housing Act, enacted in 1968 and later expanded, serves as a cornerstone for protecting renters' rights across the United States. It prohibits discrimination based on specific protected characteristics, ensuring all prospective tenants have equal access to housing opportunities.

This law influences the rental application process by mandating that landlords cannot reject applicants based on race, color, national origin, religion, sex, disability, or familial status.

Defining discrimination in rental applications

The Fair Housing Act defines discrimination as a landlord or property manager treating applicants differently because of their inclusion in one or more protected groups, such as the following:

• Familial status: Landlords cannot refuse to rent to families with children under 18 or impose stricter terms and conditions. Advertising terms such as “no children” or prioritizing single applicants over families would constitute discrimination under the Act.
• National origin and race: Landlords are prohibited from using nationality, ethnicity, or race as a basis for tenant selection. For example, rejecting applicants due to their accent, language, or background violates the Act.
• Disability: Housing providers must make reasonable accommodations for individuals with disabilities. This may include allowing service animals in a “no pets” property or permitting physical adjustments to make a unit more accessible. Any refusal to reasonable accommodations for disabilities constitutes discrimination.

Ensuring fair treatment of all prospective tenants

Fair housing guidelines exist to create a level playing field for all applicants. By adhering to these guidelines, landlords uphold a fair, transparent, and compliant rental application process. Clear, objective criteria — such as minimum credit score, income requirements, or rental history — allow landlords to assess each applicant equally without bias.

This approach reduces the risk of legal issues and fosters a reputation for fairness and reliability.

For property owners and managers, compliance with fair housing laws extends beyond tenant selection. Marketing practices, lease agreements, and tenant interactions are all held to these standards. The U.S. Department of Housing and Urban Development (HUD) also provides resources to assist landlords in navigating fair housing requirements effectively, underscoring the importance of equal access to housing opportunities for all qualified applicants.

By following fair housing laws and implementing unbiased screening criteria, landlords can ensure that each prospective tenant is evaluated fairly, fostering an inclusive and compliant rental environment.

Balancing fairness and flexibility in the tenant screening process

Landlords face the challenge of balancing fairness with the flexibility to choose the most suitable tenant for their rental property. While fair housing guidelines set essential boundaries, they don't prevent landlords from considering various legitimate factors to assess each applicant’s reliability and ability to meet rental obligations.

By using a consistent, objective approach to tenant screening, landlords can comply with fair housing laws while making informed decisions that protect their rental investment.

Key screening factors in tenant selection

To determine a tenant’s suitability, landlords commonly rely on a few key evaluations, including conducting a credit check, that are both legally sound and indicative of financial stability.

• Credit checks: Reviewing an applicant’s credit history gives landlords insight into their financial habits and ability to handle monthly rent payments. While fair housing laws prevent discrimination, they allow landlords to establish a minimum credit score as a general standard, provided it’s applied equally across all applicants.
• Rental history: Previous rental experiences — such as timely payments, adherence to lease terms, and a lack of noise complaints — can reflect a tenant’s likelihood to uphold their responsibilities. Contacting former landlords offers additional context to support landlords’ decisions.
• Income and employment: Confirming income stability through pay stubs or bank statements helps landlords assess whether an applicant can reliably meet rent obligations. Minimum income thresholds, often set at two to three times the monthly rent, provide reassurance without straying from fair housing principles.
• Criminal background: Fair housing laws don't prohibit landlords from considering criminal history (depending on the state), though HUD guidelines recommend that landlords carefully evaluate how certain convictions might affect tenant suitability. Blanket rejections based on criminal history alone may lead to unintended discrimination, so individualized assessments are encouraged.

Why flexibility matters in tenant selection

The flexibility to choose among multiple qualified applicants allows landlords to prioritize the applicant they believe will be the best long-term fit. While a “first-come, first-served” policy can offer fairness, it may restrict landlords from considering certain factors — such as long-term financial stability — that influence the overall quality of the rental experience. For instance, consider the following:

• Risk mitigation: A tenant with a stronger financial background or a longer, positive rental history may present a lower risk of late or missed payments.
• Compatibility: Certain applicants may align better with the landlord’s property management style or the needs of the rental community, particularly in multi-unit properties.

Maintaining a balanced approach to tenant screening — where fair, consistent criteria guide decision-making without sacrificing flexibility — empowers landlords to build stable, positive landlord-tenant relationships.

Common criteria for qualified applicants

For landlords and property managers, assessing the quality of a prospective tenant goes beyond meeting fair housing requirements. There are several vital factors commonly reviewed during the tenant screening process that provide a deeper understanding of a tenant's reliability and fit for the property. 

Here's a closer look at these criteria and how they help landlords find tenants who will contribute to a positive rental experience.

Key screening criteria

Landlords rely on a number of key screening criteria when evaluating potential tenants. Here are the main elements involved in that evaluation.

1. Credit report and credit score

A tenant's credit score and credit report provide a snapshot of their financial habits and responsibilities. Factors like past payment history, outstanding debt, and credit utilization rates help landlords gauge how likely the tenant is to meet their monthly rent commitments. 

2. Rental history and references from former landlords

Past rental behavior is one of the best indicators of future performance. Landlords look for applicants with a solid rental history, free of repeated late payments or lease violations. References from former landlords can offer additional context, helping landlords avoid potential issues like property damage or frequent complaints.

3. Income verification and stability

Verifying income ensures that the tenant can reliably cover rent and other expenses. Landlords commonly require applicants to demonstrate income at least two to three times the monthly rent, which might be verified through pay stubs, tax returns, or bank statements. 

4. Background checks, including criminal and eviction history

Background checks, including a criminal history search and eviction history, assess any red flags that might affect the rental property's safety, security, and enjoyment. Eviction history can signal potential risks, while a criminal background check is reviewed on a case-by-case basis, ensuring compliance with HUD guidelines and avoiding blanket policies.

Why these criteria matter

Each screening factor supports a fair, comprehensive evaluation beyond basic qualifications to identify a qualified tenant. By reviewing a tenant's credit, rental history, income stability, and background, landlords can make informed choices about applicants who meet minimum standards and are likely to contribute positively to the rental environment.

Understanding the tenant application process

For landlords, understanding prospective tenants' typical steps can provide insights into where they might streamline the process and ensure they receive well-prepared applications. Here's an overview of the standard application process from a landlord's perspective.

Key steps in the application process

The application process involves several important steps in order to establish a good match between a potential tenant and an available property.

1. Initial interest and property viewing

Prospective tenants express interest and schedule viewings. Ensuring the property is presentable and ready for showings as a landlord can help attract qualified applicants and set expectations from the start.

2. Application submission and documentation

Landlords typically require each potential tenant to apply, along with essential documentation, such as proof of income, pay stubs, bank statements, and references from prior landlords. Requiring proper documentation from every applicant helps streamline the review process and reduces delays.

Azibo offers a free online application form that you can easily embed in your property listings, or send directly to your applicants. See more here.

3. Application fees

Charging a reasonable application fee covers the costs of background and credit checks, helping filter serious applicants. Transparency regarding these fees is essential, as it can prevent misunderstandings and ensure applicants are aware of any upfront costs.

Azibo’s screening services charge the renter — however, landlords can also cover some or all of the application fee, if necessary, to comply with state laws. 

4. Screening and wait times

Once all documentation is submitted, landlords conduct credit checks, background checks, and reference calls to ensure the tenant meets minimum qualifications. It’s wise to inform applicants about the estimated processing time to manage expectations and avoid unnecessary follow-up.

Screen your renter with Azibo, today. 

How this process helps landlords secure reliable tenants

A clear, structured application process informs potential tenants and ensures landlords can efficiently gather and review all necessary information. By outlining each requirement upfront and enforcing consistent standards, landlords can attract applicants who are prepared, qualified, and serious about securing the property. 

Handling multiple qualified applicants

When dealing with multiple qualified applicants, it's important to have a fair and transparent decision-making process. This helps you choose the best tenant for your rental property and ensures compliance with fair housing laws.

Strategies for fair decision-making

Fair decision-making benefits everyone in the rental market. This requires reliance on established best practices that every landlord and tenant can follow.

1. Establish clear criteria: Develop a set of objective criteria to evaluate applicants, such as rental history, credit score, income, and employment history. Ensure these criteria comply with fair housing laws, and apply them consistently to all applicants. This ensures that every prospective tenant receives the same assessment, promoting fairness and transparency.
2. Use a point system: Consider using a point system to evaluate applicants, where points are awarded for meeting specific criteria. For example, you might assign points for a high credit score, stable employment, or a positive rental history. This method allows you to compare applicants objectively and make a fair decision based on quantifiable factors.
3. Document everything: Keep detailed records of all interactions with applicants, including applications, credit and background checks, and communication. This documentation can be invaluable if you must demonstrate that your decision-making process is fair and unbiased.
4. Avoid disparate treatment: Ensure that you treat all applicants equally, and don't discriminate against any individual based on their race, color, national origin, religion, sex, family status, or disability. Adhering to fair housing laws is important in preventing discrimination and ensuring all prospective tenants have an equal opportunity to secure housing.

By implementing these strategies, landlords can navigate the complexities of handling multiple qualified applicants while complying with fair housing laws. This approach helps select the best tenant for the rental property and fosters a reputation for fairness and integrity in the rental market.

Making informed tenant selection decisions

Navigating the tenant selection process can be challenging in today's competitive rental market. For landlords, balancing fair housing compliance with the flexibility to choose the most reliable tenants is important to maintaining a successful rental business. Understanding and potentially implementing a "first-come, first-served" approach offers one way to streamline applications and avoid bias.

Landlords can make well-informed decisions prioritizing fairness and financial stability by focusing on crucial screening factors like credit reports, rental history, and income verification. Adhering to fair housing laws protects landlords legally and helps build a reputation for integrity and transparency — qualities that attract reliable tenants in the long run.

Whether you're using a "first-come, first-served" model or a more flexible approach, maintaining clear, consistent criteria is essential. With a structured application process and a commitment to equitable treatment, landlords can confidently select tenants who will contribute positively to their property, protect their investment, and create a thriving rental community.