Choosing the right tenant from a sea of applicants can be a difficult decision, but a thorough tenant screening process can help you find tenants who are financially responsible and trustworthy. The screening process includes assessing an applicant’s income, rental history, and employment stability.
Some landlords include a tenant interview or conduct reference checks as part of the process. However you choose to approach these steps, the goal is to gather as much information as possible to confidently assess whether the applicant will be a reliable and responsible tenant.
Key benefits for screening renters include:
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 abide by the lease agreement, thereby ensuring a steady stream of rent payments.
Reduced Evictions
Evictions can be time-consuming, costly, and stressful. By screening applicants, you can reduce the likelihood of evicting a tenant in the future. The screening process can reveal whether an applicant has had a prior eviction or a poor credit history.
Fair Housing Compliance
Tenant screening must be conducted in accordance with housing laws. Landlords must ensure that their tenant selection process does not discriminate based on factors such as 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 discrimination claims and legal disputes.
Reduction in Turnovers
High turnover is costly, as it produces expenses and reduces income. Through proper screening, however, landlords can sift out tenants who do not meet the objective criteria. A tenant who successfully passes the screening process is more likely to pay rent on time and be more inclined to renew their lease; thus, sparing you from having to repeatedly sort through a new stack of applicants.
Increased Property Protection
A reference check can reveal past rental behavior, such as property damage or disputes with previous landlords. This information allows landlords to identify tenants who are more likely to respect the property and maintain a clean, well-kept living space. Ultimately, careful screening helps avoid the headaches and expenses associated with major repairs caused by neglect or abuse of the property.
Frequently Asked Questions
What is the purpose of tenant screening?
Screening enables landlords to identify responsible tenants who demonstrate financial reliability, care for the property, and contribute positively to the community. By evaluating an applicant’s credit history, rental background, and references, landlords can minimize the risk of late payments, property damage, or disruptive behavior.
Additionally, tenant screening supports legal compliance by promoting fair and objective decision-making processes, reducing the likelihood of discrimination claims or legal issues. Ultimately, a thorough screening process protects your investment, fosters a safe living environment, and contributes to long-term success for both you and your tenants.
What red flags should I look for in a background check?
Landlords should closely examine a tenant's financial history, as it provides critical insight into their ability to meet rental obligations. Key red flags include poor credit scores, consistent late payments on bills, or unresolved debts. These patterns can indicate a risk of missed or delayed rent payments, which may cause you financial strain. Additionally, frequent bankruptcies or accounts sent to collections are significant concerns, as they suggest ongoing financial instability. Employment verification is also vital; irregular job histories or unverifiable income sources can raise questions about a tenant's reliability.
A background check should alert landlords to any history of violent crimes, as such actions can jeopardize the safety of the property and other tenants. Previous evictions or consistent disputes with past landlords are also worth noting, as they can highlight problematic behaviors. While one isolated issue might not disqualify someone, a pattern of irresponsible or concerning behavior should prompt further evaluation. By identifying these red flags, landlords can make informed decisions that protect their property, finances, and the community.
How do I obtain 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—all for free!
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 through our website. Get all the information you need to find the right tenant quickly and easily.
How do I reject a tenant’s 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 reason why you have denied them.
Skipping tenant screening can expose you to significant risks. The process is essential to help find a responsible renter for your property. Screening can help protect your investment and reduce the risk of negative outcomes down the road.
Without proper screening, you may unknowingly approve tenants who might have poor financial habits, leading to late rent payments or defaults, which could cause financial strain. Additionally, unchecked tenants could potentially damage the property, resulting in costly repairs. 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.
