Denying a Rental Applicant in Texas: Notice Rules

Quick Answer

Yes, when a consumer report played any part in your decision. 15 U.S.C. § 1681m(a) calls for a notice to the applicant when you take adverse action based in whole or in part on information in a consumer report, and the notice names the reporting agency and states the applicant’s rights. Texas adds a separate duty at the application stage: Tex. Prop. Code § 92.3515 has you make a printed notice of your selection criteria and the grounds for denial available when you hand over the application, and if you reject an applicant without having made that notice available, you return the application fee and any application deposit. Statute text last checked October 2, 2026.

Key Takeaways

• Two duties sit side by side. The federal notice applies when a report is used, and § 92.3515 applies to the criteria notice at application.
• The criteria notice comes first. Section 92.3515(a) covers criminal history, rental history, current income, credit history, and inaccurate or missing application information.
• Get the acknowledgment signed. Without a signed acknowledgment, § 92.3515(b) presumes the notice was not made available.
• The federal notice has four parts. It names the agency with its address and telephone number, states that the agency did not make the decision, and gives the applicant the right to a free report within 60 days and the right to dispute it. If you used a credit score, the notice also discloses it.
• Discrimination is a separate question. Chapter 301 bars denial based on characteristics the Act covers, and a notice does not cure a discriminatory denial.

1. The Texas Criteria Notice (§ 92.3515)

When you give an applicant a rental application, § 92.3515(a) has you make available a printed notice of your tenant selection criteria and the grounds on which the application may be denied, including the applicant’s criminal history, previous rental history, current income, credit history, and failure to give accurate and full information on the application.

• Acknowledgment. The applicant signs an acknowledgment that the notice was made available (§ 92.3515(b)). If it is not signed, the statute presumes the notice was not made available.
• Acknowledgment wording. The acknowledgment includes a statement substantively equivalent to the one in § 92.3515(c). It can be part of the application if the notice is underlined or in bold print (§ 92.3515(d)).
• Refund when the notice was missing. If you reject an applicant and you have not made the notice available, you return the application fee and any application deposit (§ 92.3515(e)).

Your written criteria then become the standard you apply to every applicant.

2. The Federal Adverse Action Notice (15 U.S.C. § 1681m(a))

Section 1681m(a) applies when you take adverse action based in whole or in part on information in a consumer report. For a rental, that includes a denial, and the FTC treats a higher deposit, a higher rent, or a required cosigner as adverse action too when the report drives the change.

The notice can be oral, written, or electronic, and a written notice leaves you with proof. It includes:

1. The name, address, and telephone number of the consumer reporting agency that supplied the report, and a statement that the agency did not make the decision.
2. A statement of the applicant’s right to a free copy of the report within 60 days.
3. A statement of the applicant’s right to dispute the accuracy of information in the report with the agency.
4. If you used a credit score, the score and the related items listed in § 1681g(f).

3. Timing

Section 1681m(a) does not set a day count. The FTC’s guidance for landlords is to give the notice when you communicate the decision, so build the notice into the same step as the denial. The applicant’s 60-day window to request a free report runs from receipt of the notice.

4. Other Texas Boundaries

• Chapter 301 (Texas Fair Housing Act). You may not deny an applicant based on race, color, disability, religion, sex, familial status, or national origin. Apply your criteria the same way to every applicant, and keep notes of what you applied and when.
• Criminal history. HUD’s 2016 guidance on criminal records addresses disparate impact under the federal Fair Housing Act. Check it, and your criteria, against current HUD posture before you rely on a criminal-history rule.
• Local rules. Some cities adopt screening rules of their own. Check your city and county before you finalize your criteria.

5. What a Missed Notice Can Cost

A willful violation of the FCRA can lead to statutory damages of $100 to $1,000 per consumer, plus punitive damages and attorney’s fees (15 U.S.C. § 1681n). A negligent violation can lead to actual damages plus fees (§ 1681o). The statute applies to any “person,” and whether holding title through an LLC changes your personal exposure depends on your facts, so ask your attorney.

6. A Denial Checklist

1. Confirm that your selection criteria were made available at application and the acknowledgment is signed.
2. Record the criterion the applicant did not meet.
3. Ask whether a consumer report played any part. If so, prepare the notice with all four items.
4. Send the notice when you tell the applicant.
5. Keep a copy of the notice, the report, and your note on how and when you sent it.

7. Questions Owners Ask

Does Texas have its own denial notice? Section 92.3515 requires the criteria notice at application and a refund if it was not made available. The report-based adverse action notice comes from federal law.

Can I give the notice by text? Section 1681m(a) allows oral, written, or electronic notice. A written or electronic notice leaves a record you can show later.

What if I used a screening service? If the service supplied a consumer report and it played a part in your decision, send the notice and name the agency that supplied the report.

Does my LLC change my duty? It may affect your personal exposure, and your attorney can tell you how it applies to your facts.

What This Guide Does Not Cover

This guide covers denial notices for residential rental applicants under 15 U.S.C. § 1681m, Tex. Prop. Code § 92.3515, and the outline of Chapter 301. It describes the statutes as of the check date above and does not predict how a court will rule on your facts.

It does not cover:

• Commercial leases and employment background checks.
• Local screening ordinances.
• Federally subsidized housing admission rules.
• Criminal-history screening in detail, covered in the Texas criminal background guide.