Back HomeThe dos and don’ts of tenant screening
Follow these tips on tenant screening for a stress-free rental experience!
THE DOS OF TENANT SCREENING
- Do ensure compliance When screening tenants, it’s essential to follow Fair Housing laws and local regulations to avoid discrimination and ensure equal treatment for all applicants. The Federal Fair Housing Act prohibits bias based on race, color, religion, national origin, sex, disability, and familial status. To stay compliant, landlords should apply the same screening criteria to all applicants, avoid discriminatory language, document decisions, and keep up with changes in housing laws. Consistent, lawful screening helps you avoid legal trouble and builds trust with prospective tenants.
- Do conduct a thorough background check
It’s tempting to trust your instincts when meeting a prospective tenant, but gut feelings aren’t enough. A proper background check should include:
- A credit report to assess financial responsibility
- A criminal history check (while staying within Fair Housing laws)
- An eviction history report to spot potential red flags
- Do verify employment and income Tenants may seem financially sound on paper. However, you should verify that they have a consistent income to pay rent. Ideally, tenants should have a monthly income of at least three times their rent. Request recent pay stubs, tax returns, or employer verification letters to confirm their ability to pay.
- Do call previous landlords
A tenant’s rental history is one of the best indicators of how they will treat your property. Contact previous landlords and ask them:
- Did they pay rent on time?
- Did they take care of the property?
- Were there any issues with noise or lease violations?
- Would you rent to them again?
- Do require a rental application
A well-structured rental application collects all the necessary details about a potential tenant, including:
- Personal information (name, contact details, etc.)
- Employment and income details
- Rental history and references
- Consent to a background and credit check
THE DON’TS OF TENANT SCREENING
- Don’t skip the screening process In a rush to fill a vacancy, you might be tempted to accept the first applicant who seems trustworthy. However, skipping the screening process could lead to major headaches down the road. Taking the time to vet tenants prevents future issues like unpaid rent or property damage.
- Don’t base decisions on personal bias Remain objective during the tenant screening process. While it’s natural to connect with certain applicants on a personal level, decisions should be based on facts—not gut feelings. Stick to the screening criteria to ensure fair and consistent evaluations.
- Don’t ignore red flags
Some warning signs shouldn’t be overlooked, including:
- A history of late or missed rent payments
- Evictions or legal disputes with previous landlords
- Frequent job changes or unstable income
- Unwillingness to provide references or background check consent
- Don’t charge illegal or excessive fees Many states regulate how much landlords can charge for application and screening fees. Comply with state laws and only charge what’s necessary to cover background and credit checks. Charging excessive fees can deter good tenants and lead to legal trouble.
- Don’t forget to trust your lease agreement Even after screening, it’s essential to have a strong lease agreement that outlines rules, expectations, and responsibilities. A well-written lease protects both you and the tenant, reducing the risk of misunderstandings or disputes down the line.
