Key Takeaways
- Thorough tenant screening minimizes risks like unpaid rent, evictions, or property damage.
- Pre-screening begins during the first contact; use this opportunity to assess fit and provide rental criteria upfront.
- Viewings are an extension of the screening process; watch for red flags like lateness, excessive complaints, or manipulative behavior.
- Trust your instincts and use additional checks, such as social media or LinkedIn, to identify potential concerns.
- Use a detailed rental application form to gather critical information, including income, rental history, credit, and references.
- Stay compliant with Fair Housing Act rules by avoiding questions about protected statuses and following Fair Credit Reporting Act guidelines for adverse actions.
What Is Tenant Screening?
Tenant screening is the process landlords use to assess whether an applicant is likely to be a reliable renter before signing a lease.
It usually involves reviewing a rental application, checking financial and rental history, verifying income, and, when legally permitted, running background or credit checks.
Why is screening tenants important?
Tenant screening is important because it helps you make a more informed decision before signing a lease agreement.
A proper screening process can:
- Reduce the risk of unpaid rent
- Property damage
- Lease violations
- Future eviction proceedings
These problems with tenants can be costly and time-consuming, especially if they lead to legal fees or long periods without rental income.
Tenant Screening Checklist for Landlords
Here is a five-step tenant screening checklist that can solve most of a landlord's problems before they even happen:
1. Using a rental application to pre-screen tenants
The first step to screening prospective tenants is to create a rental application form. In your application, it's important to clarify the rules and what the tenants can expect..
Landlords can ask for specific information on a rental application form. Common information to request includes:
- Personal contact information
- Income and employment information
- Rental history
- Banking information
- Credit information
- Personal references
- Emergency contact information
Landlords may also use the application to request permission for additional screening checks, such as:
- Credit checks
- Criminal background checks, where legally permitted
- Eviction history reports
- Employer references
- References from previous landlords
- Proof of income
- An interview with the applicant
If you have multiple applicants for your rental, make sure they all fill out an application. Also, if there is a cosigner, clearly state they must complete an application. It's essential to return the application to the applicant immediately if any criteria are left blank.
You can enhance tenant screening by looking into an applicant's social media accounts. Uncouth public behavior on Facebook or Instagram can be a red flag. You can also verify their employment history on LinkedIn.
2. First Contact
Prospective tenants will call or email you for more information and to schedule a viewing. This first contact is an excellent opportunity to pre-screen a prospective tenant.
If you are talking to a prospective tenant by phone, take notes during the conversation and ask questions. If, for example, they are interested in renting short-term, but you are looking for someone to rent long-term, identify this mismatch in order to save both of you some time.
You may also want to provide prospective tenants with a rental criteria checklist upfront. This allows them to determine if they meet your minimum requirements before applying, saving time for both parties.
3. Check tenant employment and income history
The applicant's income and employment are crucial because they determine whether they can afford the rent and maintain their employment. Three times is a standard income guideline because applicants who earn three times their rent can usually afford the property without a struggle.
Landlords can verify proof of income through pay stubs, tax returns, and bank statements. Check their employment status and take notes on their performance and history with their current employer if possible.
When screening rental applicants, you will discover that job stability can be more accurate than salary alone.
4. Review previous addresses, landlords, and eviction histories
Learning about prior rental experiences is essential. Identify a former address and verify it by getting in touch with the previous landlords and asking them specific questions. Most likely, a current or former landlord can offer insight into whether a tenant is easy to work with or should be avoided.
There is also the possibility that the landlord did not follow the state's tenant laws or caused more problems than the tenant did. When possible, you should communicate with multiple landlords when learning how to screen renters.
In addition to the application paperwork, request a landlord reference letter that details the tenant's previous residences, their rent, and whether it was timely paid. This is how to screen potential renters correctly.
5. The Viewing
Approach each viewing as is if you are interviewing the prospective tenant. Prepare notes based on the prospective tenant's initial phone call. You may have many questions, and want to make sure that you get answers to all of them.
Some warning signs to look out for during the viewing include:
- Was the prospect late for the scheduled viewing?
- Were they nitpicking or looking for things to complain about?
- Did they attempt to use these complaints to persuade you to reduce the rent you're asking for?
This kind of behavior might continue for the duration of your relationship with the person. Once they become a tenant of yours, this may manifest itself as paying the rent late and other troublesome behavior.
Get Your Rental Application Here
What Questions Should I Ask Prospective Tenants?
Here is a list of tenant pre-screening questions that are designed to help you determine whether or not they qualify to lease your property before you arrange a viewing:
How Much Does it Cost To Screen a Tenant?
According to state laws, tenant screening report fees can range from $25 to $75. A crucial aspect to remember is the accreditation of screening reports by an FCRA-approved credit check service.
A landlord can save money on screening costs by bundling all three reports (credit, eviction, and criminal), an expense that can be covered by either the landlord or the tenant.
Prospective tenant criteria
You can streamline the approval process by using your tenant screening checklist for landlords. In addition to protecting you from discrimination claims, it ensures the screening process for all tenants is objective and fair.
What Questions are Landlords Not Allowed to Ask?
In order for a landlord to protect themself from potential claims filed by a tenant regarding harassment and intimidation or discrimination, it's always best to avoid asking certain questions.
Most importantly, a landlord should refrain from asking a prospective tenant any questions relating to a person's protected status under Title VIII of the Civil Rights Act of 1968.
Also known as the Fair Housing Act, this law makes it unlawful to:
This ensures that everyone has equal access to housing opportunities. And, among other things, means any questions relating to a person's protected status under the Fair Housing Act should be avoided.
While there are a few exemptions under federal law for all landlords, these exemptions do not apply in certain states that have their own fair housing laws.
One exemption that is fairly consistent is when an individual landlord will be occupying the same premises as the tenant. Our rental application form generator takes each state into account when creating your document.
Additionally, landlords should familiarize themselves with Fair Credit Reporting Act (FCRA) requirements if they are using credit or background checks to reject applicants. If adverse action is taken, landlords must provide supporting documentation as required by law.
In conclusion, as a landlord, you should always conduct yourself in a professional manner, and operate your rental property as a fair housing opportunity for anyone who can satisfy your rental criteria.
Sources:
Key Takeaways
- Thorough tenant screening minimizes risks like unpaid rent, evictions, or property damage.
- Pre-screening begins during the first contact; use this opportunity to assess fit and provide rental criteria upfront.
- Viewings are an extension of the screening process; watch for red flags like lateness, excessive complaints, or manipulative behavior.
- Trust your instincts and use additional checks, such as social media or LinkedIn, to identify potential concerns.
- Use a detailed rental application form to gather critical information, including income, rental history, credit, and references.
- Stay compliant with Fair Housing Act rules by avoiding questions about protected statuses and following Fair Credit Reporting Act guidelines for adverse actions.
What Is Tenant Screening?
Tenant screening is the process landlords use to assess whether an applicant is likely to be a reliable renter before signing a lease.
It usually involves reviewing a rental application, checking financial and rental history, verifying income, and, when legally permitted, running background or credit checks.
Why is screening tenants important?
Tenant screening is important because it helps you make a more informed decision before signing a lease agreement.
A proper screening process can:
- Reduce the risk of unpaid rent
- Property damage
- Lease violations
- Future eviction proceedings
These problems with tenants can be costly and time-consuming, especially if they lead to legal fees or long periods without rental income.
Tenant Screening Checklist for Landlords
Here is a five-step tenant screening checklist that can solve most of a landlord's problems before they even happen:
1. Using a rental application to pre-screen tenants
The first step to screening prospective tenants is to create a rental application form. In your application, it's important to clarify the rules and what the tenants can expect..
Landlords can ask for specific information on a rental application form. Common information to request includes:
- Personal contact information
- Income and employment information
- Rental history
- Banking information
- Credit information
- Personal references
- Emergency contact information
Landlords may also use the application to request permission for additional screening checks, such as:
- Credit checks
- Criminal background checks, where legally permitted
- Eviction history reports
- Employer references
- References from previous landlords
- Proof of income
- An interview with the applicant
If you have multiple applicants for your rental, make sure they all fill out an application. Also, if there is a cosigner, clearly state they must complete an application. It's essential to return the application to the applicant immediately if any criteria are left blank.
You can enhance tenant screening by looking into an applicant's social media accounts. Uncouth public behavior on Facebook or Instagram can be a red flag. You can also verify their employment history on LinkedIn.
2. First Contact
Prospective tenants will call or email you for more information and to schedule a viewing. This first contact is an excellent opportunity to pre-screen a prospective tenant.
If you are talking to a prospective tenant by phone, take notes during the conversation and ask questions. If, for example, they are interested in renting short-term, but you are looking for someone to rent long-term, identify this mismatch in order to save both of you some time.
You may also want to provide prospective tenants with a rental criteria checklist upfront. This allows them to determine if they meet your minimum requirements before applying, saving time for both parties.
3. Check tenant employment and income history
The applicant's income and employment are crucial because they determine whether they can afford the rent and maintain their employment. Three times is a standard income guideline because applicants who earn three times their rent can usually afford the property without a struggle.
Landlords can verify proof of income through pay stubs, tax returns, and bank statements. Check their employment status and take notes on their performance and history with their current employer if possible.
When screening rental applicants, you will discover that job stability can be more accurate than salary alone.
4. Review previous addresses, landlords, and eviction histories
Learning about prior rental experiences is essential. Identify a former address and verify it by getting in touch with the previous landlords and asking them specific questions. Most likely, a current or former landlord can offer insight into whether a tenant is easy to work with or should be avoided.
There is also the possibility that the landlord did not follow the state's tenant laws or caused more problems than the tenant did. When possible, you should communicate with multiple landlords when learning how to screen renters.
In addition to the application paperwork, request a landlord reference letter that details the tenant's previous residences, their rent, and whether it was timely paid. This is how to screen potential renters correctly.
5. The Viewing
Approach each viewing as is if you are interviewing the prospective tenant. Prepare notes based on the prospective tenant's initial phone call. You may have many questions, and want to make sure that you get answers to all of them.
Some warning signs to look out for during the viewing include:
- Was the prospect late for the scheduled viewing?
- Were they nitpicking or looking for things to complain about?
- Did they attempt to use these complaints to persuade you to reduce the rent you're asking for?
This kind of behavior might continue for the duration of your relationship with the person. Once they become a tenant of yours, this may manifest itself as paying the rent late and other troublesome behavior.
Get Your Rental Application Here
What Questions Should I Ask Prospective Tenants?
Here is a list of tenant pre-screening questions that are designed to help you determine whether or not they qualify to lease your property before you arrange a viewing:
How Much Does it Cost To Screen a Tenant?
According to state laws, tenant screening report fees can range from $25 to $75. A crucial aspect to remember is the accreditation of screening reports by an FCRA-approved credit check service.
A landlord can save money on screening costs by bundling all three reports (credit, eviction, and criminal), an expense that can be covered by either the landlord or the tenant.
Prospective tenant criteria
You can streamline the approval process by using your tenant screening checklist for landlords. In addition to protecting you from discrimination claims, it ensures the screening process for all tenants is objective and fair.
What Questions are Landlords Not Allowed to Ask?
In order for a landlord to protect themself from potential claims filed by a tenant regarding harassment and intimidation or discrimination, it's always best to avoid asking certain questions.
Most importantly, a landlord should refrain from asking a prospective tenant any questions relating to a person's protected status under Title VIII of the Civil Rights Act of 1968.
Also known as the Fair Housing Act, this law makes it unlawful to:
This ensures that everyone has equal access to housing opportunities. And, among other things, means any questions relating to a person's protected status under the Fair Housing Act should be avoided.
While there are a few exemptions under federal law for all landlords, these exemptions do not apply in certain states that have their own fair housing laws.
One exemption that is fairly consistent is when an individual landlord will be occupying the same premises as the tenant. Our rental application form generator takes each state into account when creating your document.
Additionally, landlords should familiarize themselves with Fair Credit Reporting Act (FCRA) requirements if they are using credit or background checks to reject applicants. If adverse action is taken, landlords must provide supporting documentation as required by law.
In conclusion, as a landlord, you should always conduct yourself in a professional manner, and operate your rental property as a fair housing opportunity for anyone who can satisfy your rental criteria.
Sources:
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