So, how do you legally say “no” to an applicant? Here are some valid reasons.
1. They Can’t Afford the Rent
This one’s pretty straightforward. If a tenant’s income doesn’t stack up and there’s a real risk they’ll struggle to pay rent, you’re well within your rights to decline their application. Just make sure you use fair and consistent criteria when assessing a tenant’s ability to pay.
2. Bad Credit History
If an applicant has a history of missed payments, defaults, or debt collection notices, that’s a red flag. You don’t have to take on the risk of a tenant with a track record of not paying their bills.
3. Negative References from Past Landlords
Checking references is a must. If a previous landlord tells you they were late on rent, caused damage, or were disruptive to neighbors, you don’t have to take the gamble.
4. False Information or Missing ID
Lying on a rental application is a serious red flag. If a tenant refuses to provide proper ID, gives misleading details about their employment or rental history, or provides fake references, you’re not obligated to accept them.
5. Too Many People for the Property
You can set a reasonable limit on how many people can live in your rental. If a two-bedroom home suddenly has six adults wanting to move in, you can say no based on overcrowding concerns.
6. They Refuse to Follow the Lease Terms
If a prospective tenant pushes back on standard, reasonable terms—like subletting rules or maintenance responsibilities—before even signing, that’s a red flag. If they won’t agree to your fair rules, you’re not required to rent to them.
7. Pets That Aren’t Suitable
While you can’t refuse a disability assist dog (that would be discrimination), you can have a no-pet policy or decline pets that aren’t a good fit for the property—like a large dog in a small apartment.
8. Smoking Inside the Property
If your rental is smoke-free, you’re allowed to enforce that rule. If an applicant smokes and won’t agree to your non-smoking policy, that’s a valid reason to move on.
What You Can’t Do
You can’t reject someone based on protected characteristics like gender, race, age, family status, or disability—that’s illegal discrimination under the Human Rights Act 1993. You also can’t make assumptions (e.g., “young tenants are always noisy”). Your decisions must be based on facts, not personal biases.
At the end of the day, you want a tenant who’s a good fit, but you also need to play by the rules. If you’re ever unsure, check out Tenancy Services or get legal advice. Keeping things fair and legal is the best way to avoid trouble down the track.
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice, you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
