1. Abide by local, state, and federal laws

Tenant screening involves more than deciding whether an applicant meets your established screening criteria. Landlords must follow applicable federal, state, and local laws when advertising a property, evaluating applicants, and making rental decisions. Requirements can vary depending on where the property is located, so make sure you understand the rules that apply to your rental.

At the federal level, the Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, familial status, and disability. State and local laws may provide additional protections.

Tim Andrew, president of Platinum Realty Group, recommends establishing screening standards before reviewing applications:

“Landlords need to establish lawful, written screening criteria before reviewing applications and apply them consistently to every applicant. If an applicant needs an alternative path to approval, such as a co-signer or guarantor, that same option should be available to every similarly situated applicant. Screening decisions should follow a documented policy and applicable law, rather than being based on ad hoc decisions or blanket assumptions.”

Your screening criteria should be based on legitimate, relevant factors and applied consistently to everyone. If you’re unsure which requirements apply to your property, consider consulting a qualified professional familiar with landlord-tenant and fair housing laws in your area.

>>Read: Landlord Responsibilities: What to Know Before Renting

2. Check your tenant’s references

Rental history can provide valuable information about an applicant’s previous experience as a tenant. Try to contact previous landlords or property managers, particularly those associated with the applicant’s most recent rentals. Checking references can help you verify information on the application and learn more about the applicant’s payment history, lease compliance, property care, and move-out history.

Nathan Peel of Home Forward says that, in his experience, rental history can be particularly useful when evaluating an applicant:

“The single best predictor is rental history – specifically, how an applicant treated their last one or two landlords. Did they pay on time, take care of the unit, and give proper notice when they left? Past behavior is a far more reliable signal than a credit score or income figure on its own, because it tells you how someone actually behaves as a tenant, not just whether they can technically afford the rent.”

Schamir Belhomme and Chad Jarvis, managing brokers at Avenir CoLiving, also emphasize the importance of verifying the information an applicant provides:

“Some of the biggest red flags are inconsistencies: rental history that cannot be independently verified, income that does not match the supporting documentation, or information that changes when reasonable follow-up questions are asked. We look at the overall pattern rather than relying on a single piece of information.”

Need a starting spot? Here are a few questions to ask a previous landlord or property manager:

Did the tenant pay rent on time?
Did the tenant follow the terms of the lease?
Did the tenant take reasonable care of the property?
Did the tenant provide proper notice before moving out?
Were there any unpaid balances when the tenant left?

Keep questions focused on objective information relevant to the tenancy rather than subjective opinions about an applicant.

tenant screening front door rental house

3. Run a credit check on your applicant

A credit check can provide insight into an applicant’s financial history, but it shouldn’t be the only factor you consider. Look at information such as payment history, outstanding debts, and other relevant financial obligations alongside verified income and rental history.

For example, two applicants with similar incomes may have very different monthly financial obligations. An applicant with significant debt may have less money available for rent than someone with a similar income and fewer outstanding obligations. Looking at the broader financial picture can give you more context than relying on a credit score alone.

Mak Shams, director of Kettle & Oak, recommends looking beyond an applicant’s credit score:

“A reliable tenant cannot be identified by a credit score alone. Landlords should evaluate verified income, housing-payment history, debt obligations, prior landlord performance, and the applicant’s overall ability and demonstrated willingness to meet lease responsibilities. A low credit score by itself isn’t necessarily a red flag, and a high income or credit score should never substitute for verifying rental behavior and documentation.”

While you’re at it, ask for appropriate documentation to verify income. Depending on your screening criteria and local requirements, this could include pay stubs, tax documents, employment verification, or other documentation showing that the applicant has sufficient income to meet the rent.

If you use a credit report or another consumer report to evaluate an applicant, remember that the Fair Credit Reporting Act applies to tenant screening. Landlords must have a permissible purpose for obtaining consumer reports and may have additional obligations if information in a report contributes to an adverse action, such as denying an application or requiring a larger security deposit.

4. Perform a criminal background check

Where permitted by law, criminal-history information may be one component of a tenant screening process. Federal, state, and local requirements can affect when landlords may obtain or consider this information, so review the rules that apply to your property before conducting or using a criminal-history check.

Avoid blanket policies that automatically exclude applicants based on the existence of a criminal record. The FTC notes that landlords using consumer reports must comply with the Fair Credit Reporting Act, and its guidance specifically cautions that a blanket policy of refusing to rent to anyone with a criminal record may violate the Fair Housing Act.

If you use a tenant screening company or another consumer reporting agency, make sure you understand how the report is obtained and used. Screening reports can contain errors, so information should be reviewed carefully before it factors into a rental decision.

If a consumer report contributes to a decision that negatively affects an applicant, such as denying the application, requiring a co-signer, or increasing the security deposit, the landlord generally must provide an adverse action notice with information about the reporting company and the applicant’s rights.

5. Put your requirements on paper

Before accepting applications, establish clear screening criteria for the property. Your criteria might address income, credit history, rental history, lawful occupancy requirements, or other legitimate factors relevant to the tenancy.

Putting these requirements in writing can help you apply the same standards to every applicant and make your screening process more consistent. If you have property-specific rules, such as smoking policies or other lease terms permitted by law, include that information in the rental listing so prospective tenants know what to expect.

Jose Nobio, a property management operator at Detroit Property Management, recommends using a standardized screening process:

“To ensure my screening process is perfectly legal and equitable, I always apply a written, uniform screening checklist to every single applicant without exception. I keep a close eye out for discrepancies in income documents, undisclosed past evictions, or references that turn out to be friends rather than actual property managers. The biggest thing is to apply the same standards to every applicant rather than making assumptions based on a single factor.”

A consistent process can also make it easier to document how rental decisions were made. Keep records of your screening criteria and the information used to evaluate each application, and make sure anyone involved in the process understands the standards they are expected to follow.

Screening rental applicants can take time, but having a consistent process can make it more manageable. By establishing clear criteria, verifying relevant information, and following applicable laws, landlords can make more informed rental decisions while creating a screening process that is consistent for every applicant.

>>Read: How to Rent Out Your House

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