Author: Marcus Painter, Founder and Owner | Alpine Property Management Kansas City LLC
Experience: 12+ years managing rental properties in Kansas City | 200+ properties currently managed
Published: April 2, 2025 | Kansas City Metro
Quick Answer
Kansas City Ordinance 231019, effective August 1, 2024, prohibits landlords from denying tenants based solely on source of income, adverse credit history, evictions older than one year, or prior criminal convictions. Landlords must consider all lawful income sources (including Section 8 vouchers), cannot pre screen applicants before receiving written applications, and must maintain detailed records for three years. At Alpine Property Management, we’ve updated all our screening processes to ensure full compliance while still protecting our landlords’ investments maintaining our 98% rent collection rate and 96% occupancy through compliant, thorough tenant evaluation.
Introduction: A Major Shift in Kansas City Tenant Screening
As of August 1, 2024, Kansas City landlords must comply with Ordinance 231019, a regulation designed to eliminate housing discrimination based on source of income, rental history, credit score, and criminal history. While the ordinance aims to promote fair housing opportunities, it introduces significant changes to tenant screening processes.
This guide provides an overview of the ordinance’s key provisions, compliance requirements, and strategies for landlords to adapt effectively while still protecting their rental investments.
What Are the Key Provisions of Ordinance 231019?
Source of Income Protection
Landlords must consider all lawful, verifiable sources of income when evaluating rental applications. This includes wages, government assistance (such as Section 8 vouchers), child support, Social Security, disability payments, and other legal income streams. Refusing to rent solely based on a tenant’s source of income is now prohibited in Kansas City.
For landlords unfamiliar with voucher programs, this represents a significant shift. Alpine Property Management has extensive experience with Section 8 compliance and can help landlords navigate these requirements.
Elimination of Pre Screening
Landlords are no longer permitted to advertise or disclose their rental screening criteria before receiving a written application from a prospective tenant. This means you cannot state in listings that applicants must have a minimum credit score, no prior evictions, or meet specific income requirements.
This measure aims to prevent potential discrimination during the initial stages of tenant selection by ensuring all prospective tenants have an equal opportunity to apply.
What Criteria Can No Longer Be Used to Deny Tenancy?
Denying tenancy based solely on any of the following is now forbidden:
- Adverse credit history alone
- Evictions older than one year
- Prior criminal convictions (with limited exceptions for certain offenses)
Landlords must consider mitigating factors such as efforts to resolve financial issues, evidence of rehabilitation, or changed circumstances before making a denial decision. A holistic evaluation approach is now required.
How Do Rent to Income Ratio Calculations Change?
When calculating rent to income ratios, landlords must include all lawful income sources. For tenants utilizing government vouchers like Section 8, the ratio should apply only to the tenant’s portion of the rent, not the full rental amount.
For example, if rent is $1,200 and a Section 8 voucher covers $900, you would calculate the income ratio based on the tenant’s $300 responsibility not the full $1,200.
What Must Landlords Do to Comply with Ordinance 231019?
Update Rental Advertisements and Applications
Ensure that property advertisements focus solely on the property’s features without specifying tenant qualifications. You can describe the property, rent amount, lease terms, and amenities but not applicant requirements.
All rental applications must now include the non discrimination statement: “The landlord does not discriminate based on source of income.”
Develop Non Discriminatory Screening Policies
Revise existing screening policies to eliminate any practices that could be deemed discriminatory under the new ordinance. This includes standardizing income verification procedures and ensuring consistent application of criteria across all applicants.
Your tenant screening process should evaluate multiple factors holistically rather than using any single factor as an automatic disqualifier.
Maintain Detailed Records
Keep comprehensive records of all rental applications, including income sources and specific reasons for acceptance or denial, for at least three years. This documentation is crucial for demonstrating compliance and protecting against potential legal challenges.
According to legal guidance on the ordinance, thorough record keeping is your best protection if a denied applicant files a complaint.
Provide Staff Training
Educate property management staff on the requirements of Ordinance 231019, emphasizing the importance of non-discriminatory practices and proper documentation. Training should cover recognizing and preventing discriminatory behaviors and implementing fair screening processes.
How Can Landlords Protect Their Properties While Staying Compliant?
Use Holistic Tenant Evaluations
Assess applicants by considering multiple factors together credit history, rental history, income verification, employment stability, and personal references. While an adverse credit history alone cannot justify denial, combining it with other legitimate concerns like a pattern of late payments, insufficient income, or poor rental references may provide grounds for rejection.
The key is documenting how multiple factors together informed your decision, not relying on any single criterion.
Apply Screening Criteria Consistently
Apply uniform screening standards to all applicants, ensuring fairness and reducing the risk of discrimination claims. Document each evaluation thoroughly to demonstrate adherence to consistent practices.
If you deny an applicant, document specifically which combination of factors led to that decision and make sure you’ve applied those same standards to every applicant.
Utilize the Landlord Risk Mitigation Fund
The ordinance establishes a $1 million Landlord Risk Mitigation Fund to cover potential damages or losses associated with renting to higher-risk tenants. This fund can reimburse landlords for unpaid rent, property damage, or legal costs that exceed the security deposit.
Leveraging this fund can mitigate financial exposure and encourage compliance with the ordinance’s provisions. Contact the Kansas City Housing Department for details on how to file a claim.
What Are the Consequences of Non Compliance?
Fines and Penalties
Violations can lead to fines of up to $1,000 per instance. These can accumulate quickly with multiple violations and result in substantial financial burdens for landlords who don’t adapt their practices.
Probationary Status
Landlords with multiple violations within a twelve-month period may be placed on Special Probationary Status. This requires completion of a corrective action plan and subjects landlords to increased oversight from the city.
Legal Action
Persistent non-compliance can lead to legal proceedings, including potential imprisonment of up to 180 days in extreme cases. Beyond legal consequences, non-compliance creates significant reputational risks for property owners and management companies.
How Does Alpine Property Management Handle Ordinance 231019 Compliance?
At Alpine Property Management, we updated all our screening and application processes before the August 2024 effective date. Our approach includes:
- Compliant application forms with required non discrimination statements
- Holistic screening evaluations that consider multiple factors without automatic disqualifiers
- Proper income calculations for voucher recipients
- Detailed documentation of all screening decisions
- Staff training on fair housing requirements and the new ordinance
Our compliance focused approach hasn’t compromised our results. We maintain a 98% rent collection rate, 96% occupancy, and average just 14 days between tenants proving that thorough, compliant screening still finds reliable tenants.
Conclusion: Compliance Protects Your Investment
Navigating the complexities of Ordinance 231019 is essential for Kansas City landlords to avoid fines, legal action, and reputational damage. By updating policies, maintaining detailed records, and adopting holistic approaches to tenant screening, landlords can align with the ordinance’s objectives while protecting their investments.
For landlords who find these requirements overwhelming, working with an experienced property management company ensures compliance without the headache of tracking regulatory changes yourself.
Frequently Asked Questions
What is Kansas City Ordinance 231019? Ordinance 231019 is a Kansas City regulation effective August 1, 2024, that prohibits housing discrimination based on source of income, requires landlords to consider mitigating factors when evaluating credit and criminal history, and eliminates pre screening of applicants before they submit written applications.
Can I still deny applicants with bad credit under Ordinance 231019? You cannot deny an applicant based solely on adverse credit history. However, you can consider credit history as one of multiple factors in a holistic evaluation. If an applicant has poor credit combined with insufficient income, negative rental references, and other concerns, those combined factors may justify denial but document your reasoning thoroughly.
Do I have to accept Section 8 tenants under this ordinance? You must consider Section 8 and other government housing assistance as legitimate income sources. You cannot refuse to rent to someone solely because they use a housing voucher. However, applicants must still meet your other screening criteria when evaluated holistically.
What records do I need to keep for Ordinance 231019 compliance? Maintain all rental applications, income verification documents, screening results, and written explanations for acceptance or denial decisions for at least three years. Detailed documentation protects you if a denied applicant files a discrimination complaint.
What is the Landlord Risk Mitigation Fund? The ordinance created a $1 million fund to reimburse landlords for damages, unpaid rent, or legal costs that exceed security deposits when renting to higher risk tenants. Contact the Kansas City Housing Department for eligibility requirements and claim procedures.
Does Ordinance 231019 apply to properties outside Kansas City, Missouri? No, this ordinance applies only to rental properties within Kansas City, Missouri city limits. Properties in Kansas City, Kansas, or other Missouri municipalities have different regulations. Alpine manages properties across the metro area and understands the compliance requirements for each jurisdiction.
How can I make sure my screening process is compliant? Work with a property management company experienced in Ordinance 231019 compliance, update your application forms to include required non-discrimination language, train staff on holistic evaluation methods, and document all screening decisions thoroughly. Alpine Property Management handles all compliance requirements for our managed properties.
Related Resources
- Full Property Management Services
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- Why Out-of-State Investors Rely on Alpine to Manage Their Kansas City Rentals
- The Benefits of Using a 1031 Exchange in Real Estate
š Need help navigating Kansas City’s rental regulations?
Call or text Alpine Property Management Kansas City at 816-343-4520
Let’s keep your properties compliant and profitable.