To increase income and to enhance the value of their property, all property owners and managers must select tenants who are good credit risks and who will coexist peacefully with other tenants.  But the selection issues facing each type of rental property are quite different.

Equal housing opportunities are an important goal of federal, state, and local governments.  Therefore, residential landlords are subject to a number of laws prohibiting housing discrimination.  These laws hold property owners and managers responsible for conscious or unconscious discrimination based on race, religion, color, family status, sex, national origin, or handicap.  Anti-discrimination laws affect all aspects of selection process, from advertising and marketing to the charging of security deposits. These are risks that residential owners and managers cannot afford to ignore; therefore, they must develop policies and procedures to ensure that every applicant is treated fairly.

Commercial property owners and managers are subject to fewer legal requirements, but their financial risks are more serious than those of residential landlords.  The commercial tenant selection process therefore focuses on attracting and retaining creditworth and financially stable tenants, whose businesses are compatible with those of fellow tenants.

The united States Civil Rights Act of 1968 and its Amendments Act of 1988 are commonly called the Fair Housing Act.  Discrimination is illegal if it is based on: Race, Color, Religion, Gender, National Origin, Familial status, Mental or physical handicap.