Utah Rental Application & Tenant Screening Laws St. George Landlords Should Know

What Rules Apply to Rental Applications and Tenant Screening in Utah?

Tenant screening is one of the most important parts of operating a residential rental property.

Owners need enough information to evaluate whether an applicant meets established rental criteria, but the application process is also governed by Utah disclosure requirements, state and federal fair-housing law, and federal consumer-reporting rules when credit or background reports are used.

A well-organized screening process should establish the qualification standards before applications are accepted and then apply those standards consistently.

Making qualification rules up after reviewing a particular applicant can create unnecessary compliance and fairness concerns.

Utah Tenant Screening Rules at a Glance

1. Establish Screening Criteria Before Accepting Applications

A rental owner should decide what qualification standards will be used before prospective renters begin applying.

Utah law specifically identifies several categories of criteria that an owner may consider and must disclose if used in determining eligibility.

Those can include:

• Criminal history
• Credit
• Income
• Employment
• Rental history

A property owner may also establish other lawful criteria appropriate to the rental, provided those criteria comply with applicable laws and are disclosed and applied consistently.

Applicants for VPM-managed rentals can review our Rental Criteria before submitting an application.

2. Utah Requires Written Disclosures Before Taking an Application Fee

Utah Code requires an owner to make specified written disclosures before accepting an application fee or any other payment from a prospective renter.

This means the required information should be presented before the owner collects the application fee, holding money, or another applicant payment covered by the statute.

The disclosure requirement is designed to give applicants important information about the expected rental terms and qualification process before they spend money pursuing the rental.

3. What Must Be Included in the Utah Applicant Disclosure?

Current Utah law requires the written disclosure to include several important pieces of information.

4. Rental Criteria Must Be Disclosed Before Applicant Payment

The eligibility criteria included in the disclosure should reflect the actual standards that will be used to evaluate applicants.

For example, if the owner will evaluate income, credit, rental history, employment, or criminal history, those areas should be disclosed before accepting the applicant's money.

This is one reason a written rental-criteria policy is useful.

It creates a consistent framework that can be provided to prospective renters and applied throughout the screening process.

5. Utah Also Requires Disclosure of Rental Costs

The pre-application disclosure does more than explain screening criteria.

The prospective renter must also receive a good-faith estimate of rent and fixed non-rent expenses that will be included in the rental agreement.

The owner must also identify the types of use-based non-rent expenses.

Examples of charges that may need to be evaluated for disclosure can include recurring rental-related costs, utilities, or other charges depending on how the rental is structured.

Owners should review the actual fee structure for the property rather than using a generic disclosure that does not match the lease.

6. What Happens if the Lease Costs Do Not Match the Disclosure?

Utah law provides a specific process under which a prospective renter can demand the return of money paid in connection with the rental.

The process can apply when:

• An amount in the owner's required good-faith estimate differs from the amount in the rental agreement; or
• The rental agreement contains a type of use-based non-rent expense that was not disclosed.

The prospective renter must also satisfy the other statutory requirements for the refund procedure.

Once an applicant is approved, owners should also make sure the final rental agreement clearly addresses the property's rent, fees, deposits, responsibilities, and other important terms. See our Utah Lease Agreement Laws for St. George Landlords.

7. The Applicant Has a Five-Business-Day Demand Period in Certain Situations

Under the current Utah statute, a qualifying prospective renter generally must make the written demand within five business days after receiving the rental agreement.

At the time of the demand, the prospective renter must not have signed the rental agreement or taken possession of the rental unit.

When those statutory requirements are satisfied, the law provides a process for recovering the money previously paid.

8. The Owner Also Has Five Business Days to Return the Money

If the prospective renter makes a valid written demand under the statutory procedure, Utah law generally requires the owner to return all money the prospective renter paid to the owner within five business days after receiving the demand.

Owners should therefore keep accurate records of:

• When the disclosure was provided
• What information the disclosure contained
• When the rental agreement was provided
• When applicant payments were received
• Any written demand for return of money
• Any money returned

9. Can Utah Landlords Review Credit?

Yes, credit can be part of a lawful tenant-screening process.

Utah law specifically recognizes credit as one of the criteria an owner may consider when determining rental eligibility.

The Utah Labor Commission also states that a property owner or manager may request credit-history information as long as the criterion is applied consistently without discrimination based on protected characteristics.

When a third-party credit bureau or screening company provides the report, federal Fair Credit Reporting Act requirements also become important.

10. What Is a Consumer Report?

Under federal law, a tenant-screening report can qualify as a consumer report.

Consumer reports used in rental decisions may contain information such as:

• Credit history
• Rental history
• Eviction records
• Criminal-history information
• Tenant-screening scores
• Recommendations generated by screening companies
• Information obtained through certain reference-checking services

Landlords using these reports must comply with the Fair Credit Reporting Act.

11. Landlords Need a Permissible Purpose for Consumer Reports

The Fair Credit Reporting Act limits when consumer reports may be obtained.

A landlord or property manager generally has a permissible purpose when evaluating a person who applies to rent housing or requests renewal of a lease.

The FTC also explains that landlords must certify to the consumer reporting agency that the report will be used only for a permissible housing purpose.

Owners should not obtain applicant reports casually or use them for unrelated purposes.

12. What Is an Adverse Action?

An adverse action is not limited to completely denying a rental application.

According to the Federal Trade Commission, examples of adverse action in housing can include:

• Denying the rental application
• Requiring a co-signer
• Requiring a security deposit that would not otherwise be required
• Requiring a larger deposit
• Charging higher rent
• Offering other materially less favorable terms because of information in a consumer report

If information from a consumer report played any part in the adverse decision, the FCRA notice requirement can apply even when another factor also contributed to the decision.

13. What Must an FCRA Adverse Action Notice Include?

When an adverse action is based partly or completely on information contained in a consumer report, the applicant must generally receive an adverse action notice.

The notice should include:

• The name of the consumer reporting agency that supplied the report
• The agency's address
• The agency's telephone number
• A statement that the reporting agency did not make the rental decision and cannot explain the owner's specific reason for the decision
• Notice of the applicant's right to dispute the accuracy or completeness of information in the report
• Notice of the applicant's right to request a free copy of the report from the reporting agency within 60 days

The FTC permits oral, written, or electronic adverse action notices under the FCRA, but recommends written notices as a best practice because they create documentation of compliance.

14. A Conditional Approval Can Still Trigger an Adverse Action Notice

One common mistake is assuming that an adverse action notice is only required when the applicant is completely denied.

The FTC explains that an adverse action can also occur when a consumer report causes an applicant to receive less favorable terms.

For example, an FCRA notice may be required if a screening report contributes to a decision to:

• Require a guarantor
• Require a larger deposit
• Require another condition that would not otherwise apply

Owners should therefore evaluate adverse-action requirements whenever consumer-report information affects the final rental terms.

15. What if a Credit Score Is Used?

The FTC explains that additional disclosure requirements apply when a credit score is used in making an adverse rental decision.

Those requirements can include information concerning:

• The credit score used
• The source of the score
• The date the score was created
• The possible score range
• Key factors that negatively affected the score

Owners using automated tenant-screening systems should understand exactly what information the system uses and what notices the system generates.

16. Can a Utah Landlord Consider Criminal History?

Utah's required applicant disclosure expressly recognizes criminal history as one type of eligibility criterion that an owner may consider.

The Utah Labor Commission also states that a property owner or manager may ask whether a prospective renter has a past felony record, provided the criterion is applied consistently regardless of protected characteristics.

However, owners should be cautious about blanket criminal-record policies.

The Federal Trade Commission advises landlords that a blanket policy refusing to rent to anyone with a criminal record may raise Fair Housing Act concerns.

Screening procedures involving criminal history should therefore be established carefully and reviewed with qualified legal counsel when necessary.

17. An Eviction Filing Is Not Necessarily an Eviction Judgment

Tenant-screening reports may contain court records involving previous landlord-tenant disputes.

Owners should distinguish between a court filing and the final result of the case.

A filing alone does not necessarily establish that the landlord prevailed or that the tenant was ultimately evicted.

Screening systems can also contain incomplete or inaccurate data.

Recent federal enforcement involving tenant-screening companies highlights the importance of accurate reporting of eviction and criminal-history information.

18. Fair Housing Rules Apply to Tenant Screening

Qualification standards should be applied consistently without unlawful discrimination.

The Utah Labor Commission currently identifies the following protected characteristics under the Utah Fair Housing Act:

• Race
• Color
• Sex
• Religion
• National origin
• Disability
• Source of income
• Familial status
• Sexual orientation
• Gender identity

A landlord should not use different credit, income, deposit, or screening standards based on one of these protected characteristics.

See our Fair Housing page for additional information.

19. Source of Income Is Protected Under Utah Fair Housing Law

Utah's Fair Housing Act includes source of income among its protected characteristics.

That means owners should be especially careful about screening policies that treat otherwise lawful sources of income differently.

A screening process can establish lawful income qualification standards, but those standards should be designed and applied consistently with Utah fair-housing requirements.

20. Families With Children Cannot Be Subjected to Higher Screening Standards

Familial status is also protected under Utah and federal fair-housing law.

The Utah Labor Commission states that a housing provider may not impose a higher security deposit on families with children merely because children may create additional wear and tear.

Likewise, screening or rental policies should not create unlawful preferences against households with children.

21. Disability and Assistance-Animal Requests Must Be Handled Separately From Pet Screening

An assistance animal for a qualified person with a disability is not treated as an ordinary pet under fair-housing rules.

Owners should not automatically apply ordinary pet screening, pet deposits, or pet fees to a qualifying assistance animal.

Requests involving disability-related accommodations should be processed separately and consistently with applicable fair-housing requirements.

22. Apply the Same Qualification Standards Consistently

Consistency is one of the most important principles in applicant screening.

If the property's written criteria require a particular income level, credit standard, rental history, or another lawful condition, the same standard should generally be applied to similarly situated applicants.

Changing the qualification standard depending on the applicant can create both operational and fair-housing concerns.

Written criteria also make it easier for applicants to understand what is expected before paying an application fee.

23. Keep Screening Documentation

A well-managed application file should document the process used to evaluate the applicant.

Useful records can include:

• Pre-application disclosure
• Rental criteria
• Application
• Applicant authorization
• Income documentation
• Screening report
• Rental-history verification
• Decision documentation
• Conditional approval requirements
• Adverse action notice when required
• Applicant communications

Records should be handled securely because applications and screening reports can contain sensitive personal information.

24. Dispose of Consumer-Report Information Securely

The FTC advises businesses using consumer-report information to dispose of that information securely when it is no longer needed.

Rental applications and screening reports can contain Social Security numbers, financial information, addresses, employment information, and other personal data.

Owners and management companies should use appropriate procedures for retaining and securely disposing of applicant records.

25. Should Owners Use Written Rental Criteria?

Yes.

Written criteria can provide a clear framework for both the property owner and applicant.

A well-designed screening policy can explain areas such as:

• Income requirements
• Credit standards
• Rental history
• Payment history
• Employment or income verification
• Criminal-history review
• Guarantor requirements
• Required documentation
• Other lawful qualification standards

The policy should be reviewed periodically to make sure it remains consistent with current Utah and federal requirements.

Rental Application Compliance Checklist

How Can a Property Manager Help With Tenant Screening?

Professional property management can create a consistent process for accepting applications and evaluating prospective residents.

That process can include:

• Providing required applicant disclosures
• Publishing rental criteria
• Collecting applications
• Obtaining appropriate screening authorization
• Reviewing income documentation
• Ordering consumer reports
• Verifying rental history
• Applying qualification standards consistently
• Documenting conditional approvals
• Providing adverse action notices when required
• Maintaining application records

Professional management does not replace legal advice, but a standardized process can reduce the risk of inconsistent or informal screening decisions.

Applicants can review VPM's Rental Criteria and How to Apply pages.

Rental owners can learn more about Virgin River Property Management Services.

Frequently Asked Questions About Utah Tenant Screening

Does Utah require landlords to disclose screening criteria?

Yes. Before accepting an application fee or other payment from a prospective renter, Utah law requires written disclosure of the criteria the owner will consider in determining rental eligibility, including applicable criteria involving criminal history, credit, income, employment, or rental history.

Can a Utah landlord charge an application fee before giving the required disclosure?

Utah's current Fit Premises Act requires the applicable written disclosures before the owner accepts an application fee or other payment from the prospective renter.

Does Utah require landlords to disclose the expected rent before taking an application fee?

Yes. The required disclosure includes a good-faith estimate of the rent amount as well as fixed non-rent expenses and the types of use-based non-rent expenses that will be part of the rental agreement.

Can a Utah landlord run a credit check?

Yes. Credit can be used as a lawful rental qualification criterion when handled consistently and in compliance with applicable law. When a third-party consumer reporting agency supplies the report, federal FCRA requirements apply.

Can a landlord deny an applicant because of a screening report?

A landlord may make lawful rental decisions using disclosed qualification criteria, but when information from a consumer report contributes to a denial or other unfavorable rental decision, the Fair Credit Reporting Act generally requires an adverse action notice.

Is an adverse action notice required only when an applicant is denied?

No. The FTC explains that adverse action can also include requiring a co-signer, larger deposit, higher rent, or another less favorable condition when information in a consumer report contributed to that decision.

Can Utah landlords consider criminal history?

Utah law recognizes criminal history as a possible rental eligibility criterion, and the Utah Labor Commission states that landlords may ask about a past felony record when the criterion is applied consistently. Owners should also consider federal fair-housing guidance before adopting broad criminal-record exclusions.

Is source of income protected in Utah?

Yes. The Utah Labor Commission lists source of income as a protected characteristic under the Utah Fair Housing Act.

How can applicants learn VPM's qualification standards?

Prospective residents can review our Rental Criteria before applying and visit How to Apply for additional application information.

Sources & Additional Resources