New Tenant Screening and Rental Operations Rules Are Raising the Bar for Property Teams

Leasing decisions that used to feel routine may now carry more operational weight in a few states. New laws in Maryland, Colorado, and Olympia, Washington are changing how property teams collect applicant information, explain screening criteria, protect personal data, and document rental decisions. For operators, the practical challenge is making those changes without slowing down leasing teams or creating inconsistent applicant experiences.

In Maryland, SB 937, the Maryland Fair Chance Housing Act, has been approved by the Governor and is scheduled to take effect October 1, 2026. The law applies to operators that own or manage five or more residential rental units in the state, including units owned or controlled directly, indirectly, or through legal entities. The law introduces a “two-tier” screening process. Prior to accepting an application fee, an operator must make certain disclosures regarding the use of criminal history in determining an applicant’s eligibility for leasing. Before performing a criminal screening or criminal history disclosures (with limited exceptions), operators must first extend a conditional offer. Only certain categories of convictions may be considered. Withdrawal of an offer must be tied to a substantial, legitimate, and nondiscriminatory interest. If an offer is withdrawn, the applicant must receive a written reason and an opportunity to seek reassessment with evidence of inaccuracy, rehabilitation, or mitigating factors.

Colorado’s HB 1196 is focused on screening transparency. The bill passed the legislature and was signed by the Governor on June 2, 2026. It takes effect January 1, 2027. The bill will require rental applications to tell applicants what information and data the operator will attempt to access during screening, provide a general description of evaluation factors such as credit history, rental history, income, and criminal background if applicable, and disclose whether a third-party tenant screening service is used, including the name of that service. The bill also requires operators to redact personal identifying information from eviction filing materials that may become publicly accessible, including Social Security numbers, birth dates, driver’s license numbers, state ID numbers, bank account numbers, and credit or debit card numbers.

Under Olympia’s Rental Housing Code, as amended by Ordinance 7446 (effective April 1, 2026), the new tenant screening section (OMC 5.82.150) reshapes how property teams evaluate applicants in two key areas. First, on Social Security numbers, landlords may request but may not require an SSN, may not refuse to rent because an applicant does not provide one, must inform applicants of their right to offer alternative proof of identity and financial qualifications, must accept that alternative documentation, and must offer the same lease terms as if an SSN had been provided.The code also prohibits intimidating, threatening, or harassing anyone based on immigration or citizenship status during the screening process and tenancy. Second, on income, landlords may require applicants to demonstrate income of no more than 2.5 times monthly rent, must count all income sources and the “cumulative financial resources” of all applicants, must calculate the ratio against rent reduced by any voucher or subsidy, and—if an applicant falls short—may request a co-signer or guarantor and must allow the applicant to demonstrate a history of successful rent payment. A landlord may still take adverse action based on unfavorable screening results, comply with federal law, and request information needed to verify identity or financial qualifications.

For multifamily operators, the practical takeaway is clear: screening and leasing workflows need to be documented, configurable, and consistent. Teams should review application forms, screening criteria, third-party vendor disclosures, criminal-history review practices, fee schedules, rent increase templates, and eviction filing procedures.

Entrata’s ResidentVerify can help property teams manage applicant screening within the leasing workflow. ResidentVerify integrates screening into the online application process, supports automated workflows, applies configured screening criteria consistently, and allows operators to conduct two-tier screening processes. It also supports identity confirmation, income verification, risk assessment, dispute handling, and centralized applicant visibility. Technology alone does not make a screening program compliant, but the right tools can help operators apply their policies more consistently, reduce manual work, and adapt faster as requirements change.

For more information please reach out to an Entrata representative.