Which screening criterion allows residential properties to legally discriminate?

The correct answer is related to rental history. In the context of rental applications, screening criteria that focus on a potential tenant’s rental history allow property managers and landlords to assess a candidate's past behavior as a tenant. This can include their payment timeliness, adherence to lease terms, and references from previous landlords. By focusing on rental history, property managers are in a position to make informed decisions based on prior tenant behavior that is legally acceptable and relevant to tenancy, which does not fall under discriminatory practices outlined by fair housing laws.

On the other hand, choices like handicap, family status, and employment status relate to specific protected classes under fair housing legislation. Discrimination based on these factors is illegal, and landlords cannot refuse to rent to individuals based on their disability, familial status, or employment situation. Therefore, while rental history can be a legitimate criterion, the other options are protected characteristics under the law, which must not influence the leasing decision.