There are a few laws that must be followed in Iowa when you create a rental application for tenants. Failure to comply with these rules could lead to serious legal consequences and allow the tenant to sue.
Application Fee
Landlords can charge any fee they choose for a rental application, as these are not limited by IA statutes. The fee that is paid is also non-refundable to the tenant.
Security Deposit
Landlords cannot charge more than 2 months’ rent if they are leasing an unfurnished apartment under Iowa law (§ 562A.12). The deposit must be returned to the tenant within 30 days of the date they vacate the property, minus any deductions (if applicable).
Housing Discrimination Law
Iowa has no specific statutes policing housing discrimination. Nevertheless, the Fair Housing Act (FHA), is enshrined in federal law meaning that landlords may not refuse a tenant for discriminatory reasons.
Under the FHA you may not reject a tenant application for reasons such as their race, religion, sex, family status or because they have any disabilities. You may also not discriminate against their criminal history (whether or not a background check is carried out) or nationality.
Notice of Eligibility
Potential tenants must be informed about the screening criteria and reasons for possible denial or approval in advance. To prove that this information has been shared, a signature of acknowledgment must be provided within the application or alongside it.
Consent Credit Check
The Federal Credit Reporting Act (FCRA) stipulates that potential tenants must agree to any credit checks you require. To show they consent, they must provide written acknowledgment on the application form.