Choosing the right tenant is a difficult decision for a landlord or property manager, but a thorough tenant screening process can help you find tenants who are responsible and trustworthy. Screening tenants involves assessing an applicant’s financial stability, rental history, and background information. Below are some reasons why it’s essential to screen prospective renters.
Ensure Stable Rental Income
Maintaining a consistent rental income is essential for landlords to cover the mortgage, maintenance costs, and other expenses of the property. Screening applicants helps you determine who is more likely to pay rent on time and follow the lease agreement, ensuring a stable inflow of rent payments.
Lower the Risk of Evictions
Evictions can be time-consuming, costly, and a massive headache. But by screening applicants, you can reduce the likelihood of evicting a tenant in the future. By screening, you can see if an applicant has had a prior eviction or poor credit, which can tell you whether they will be a responsible tenant.
Comply with Fair Housing Laws
Tenant screening must be conducted in compliance with fair housing laws to avoid discrimination. Landlords or property managers must ensure that their screening process does not discriminate based on race, color, religion, sex, national origin, disability, or familial status. Properly conducted screening helps landlords select tenants based on objective criteria, reducing the risk of legal troubles related to discrimination.
Helps Reduce Turnover
High turnover is a significant inconvenience for a landlord and can result in a loss in rental income. However, proper screening can help match tenants with properties that suit their needs and lifestyle, which could reduce the likelihood of them moving out after signing the lease or deciding not to renew after a year.
Protecting Your Property
By screening your applicants, you can choose tenants who are more likely to be respectful of your property and other tenants. A positive rental community can lead to a pleasant living environment which can reduce any potential issues.
Frequently Asked Questions
What does tenant screening consist of?
The screening process typically includes checking the tenant’s credit score, rental history, and a criminal background check. If you choose to advertise on Apartments.com, then you can screen any applicant that applies. Once the applicant finishes applying, you will see their screening report, which consists of an eviction report, a criminal report, and a credit report. All these reports come from TransUnion, so you can rest assured that the information from the screening is accurate.
What information should I collect?
Before you screen your tenant, it’s essential to collect an application from them. If you advertise on Apartments.com, then a tenant should be able to apply directly on the website. Then, Apartments.com will collect their first name, last name, email address, phone number, social security number, date of birth, driver’s license number, co-applicant or guarantor, any pets, and previous residence addresses. Once all this information is completed and the applicant pays $29.99, their screening report will be available.
How do I read a screening report?
Apartments.com makes it easy to screen tenants, get the information you need, and find a qualified renter fast. Unlike our competitors, who use various third-party resources to collect information, we partner with TransUnion to provide you with screening reports for evictions, credit, and criminal history. Another feature you’ll find only on Apartments.com is support for co-signers, guarantors, and co-applicants. If you need more information to make a decision, you can request supporting documents from potential tenants directly on our platform. Get all the information you need to find the right tenant quickly and easily.
- Credit Report: Each credit report tells you the applicant’s total debt, the payment history for each credit account, and their ResidentScore, which is a proprietary renter credit score that predicts evictions better than a typical credit score.
- Eviction Report: The eviction report tells you the total amount of evictions, when they were filed, and what the judgement was.
- Criminal Report: The criminal report tells you when the charge was filed, what it was, and where it happened.
How do I decline an application?
To deny an application, you must follow the Fair Housing Act and check your state laws to make sure you are aware of any other rules and regulations. You can deny an applicant if they have a bad credit score, their income is insufficient, or they have prior evictions. If an applicant has a criminal history, you cannot deny the application unless the crime jeopardizes the safety of your property and other tenants. When denying the application, be professional and write a letter including the reasoning why you have denied them.
Tenant screening is essential to find a responsible renter for your property. As a landlord or property manager, screening can help protect your investment and reduce the risk of having to evict a tenant. By thoroughly screening renters, you can create a safer and more secure living environment for your tenants and ensure a more seamless and profitable landlord experience.
