Choosing the Right Tenants: Screening Tips for Landlords

Tenant screening is the process of evaluating prospective renters to determine whether they are a good
fit for your rental property. A thorough screening process helps reduce risks, including:
- Late payments or non-payments: Ensuring that a tenant has a reliable income and a
history of paying bills on time is key to preventing missed rent payments.
- Property damage: Responsible tenants are less likely to damage your property, saving you
from costly repairs.
- Legal disputes: Properly vetting tenants can help you avoid problematic individuals who
might violate lease terms or engage in illegal activities on the premises.

While there is no foolproof method to guarantee an ideal tenant, taking certain steps during the screening
process can significantly reduce your risk.

1. Create a Clear Rental Application
A well-crafted rental application is the foundation of your screening process. This document should
gather all the necessary information to help you assess the potential tenant’s suitability.

Key details to include in your rental application:
- Personal information: Full name, date of birth, and contact information.
- Employment history: Current employer, position, salary, and previous jobs. This helps
verify financial stability.
- Rental history: Details about their current and previous rentals, including landlord contact
information. Checking rental history is crucial for understanding how a tenant behaves as a
renter.
- Income verification: Request pay stubs, tax returns, or bank statements to confirm that
they have the means to pay rent on time.
- References: Personal and professional references, especially from previous landlords.
- Authorization for credit and background checks: The tenant should sign a form that
allows you to conduct credit, criminal, and eviction history checks.

By using a detailed rental application, you can ensure that you have the necessary information to make
an informed decision.

2. Run a Credit Check

One of the most critical steps in screening tenants is running a credit check. A tenant’s credit history
provides insight into their financial responsibility and reliability when it comes to paying rent on time.

Why credit checks are important:
- Payment history: A tenant with a history of paying bills on time is more likely to pay rent
consistently.
- Debt load: Tenants with high levels of debt may struggle to pay rent, especially in the case of
unexpected expenses.
- Credit score: While not the only determining factor, a higher credit score often indicates
better financial health and responsibility.

Be sure to inform applicants that you will be running a credit check and ensure that you have their written
consent before proceeding.

What to look for in a credit report:
- A credit score of 620 or higher is considered acceptable for renters, though this can vary
based on your local rental market.
- Look for patterns of late payments, defaults, or bankruptcy. These can be red flags that
indicate financial instability.

3. Conduct a Background Check
In addition to running a credit check, conducting a criminal background check is essential for tenant
screening. A background check can uncover any criminal history that may pose a risk to your property,
other tenants, or the neighbourhood.

What to look for in a background check:
- Criminal convictions: Pay close attention to convictions for violent crimes, drug offenses,
or property crimes.
- Eviction history: If a tenant has been evicted in the past, it is a sign that they may not have
respected their previous lease agreements or may have been involved in disputes with past
landlords.
- Compliance with housing laws: Keep in mind that some states have regulations about
what you can or cannot consider when it comes to criminal history. For example, California
law prohibits landlords from denying a tenant solely based on a prior criminal conviction
unless it directly impacts their ability to rent responsibly.

Always check local and state regulations to ensure your screening process complies with fair housing
laws.

4. Verify Employment and Income
Ensuring that your tenant can afford the rent is a crucial part of the screening process. As a rule, tenants
should have a monthly income that is at least three times the rent amount. This standard helps ensure
that the tenant has enough income to cover rent, utilities, and other living expenses.

Steps to verify employment and income:
- Request pay stubs or a letter from their employer: These documents will confirm their
employment status and income.
- Verify employment history: Call their employer to verify that they are currently employed
and confirm the details provided by the tenant.
- Check for inconsistencies: Make sure that the employment information on the application
matches the documents provided. If there are discrepancies, ask the tenant to clarify.

If the tenant is self-employed or freelancing, you may need to request additional documents, such as
bank statements, tax returns, or profit and loss statements, to verify their financial stability.

5. Contact Previous Landlords

Previous landlords can provide valuable insight into a tenant’s behaviour and rental history. They can tell
you whether the tenant paid rent on time, took care of the property, and complied with the lease terms.

Questions to ask previous landlords:
- Did the tenant pay rent on time? Late or missed payments are a major red flag.
- Did the tenant take good care of the property? This helps assess how responsible the tenant
is in maintaining your rental property.
- Were there any disputes or violations of the lease? Knowing whether the tenant adhered to
the lease terms can give you a sense of their reliability.
- Would you rent to this tenant again? This is a simple but powerful question that can provide
you with valuable insight.

Be cautious of tenants who list fake landlords as references. To verify the authenticity of the landlord’s
contact information, look up the property owner’s details using public property records or other
verification tools.

6. Conduct an In-Person or Virtual Interview
While the information provided on paper is crucial, meeting the tenant in person (or virtually) can give you
additional insight. A brief conversation can help you assess their communication style, professionalism,
and whether they seem like a good fit for your property.

Things to observe during the interview:
- Punctuality: If a tenant is late or unprepared for the meeting, it may indicate unreliability.
- Mannerisms and professionalism: While this is subjective, a tenant who is polite,
respectful, and communicative is more likely to be a responsible renter.
- Clarity about expectations: Discuss key aspects of the lease agreement, such as rent due
dates, maintenance responsibilities, and house rules. A tenant who asks questions and is
clear about their expectations is more engaged in the rental process.

This interaction allows you to establish rapport and set the tone for the landlord-tenant relationship
moving forward.

7. Consider the Tenant’s Lifestyle
While you cannot discriminate against tenants based on personal characteristics, you should consider
whether their lifestyle is compatible with your rental property. For example:
- Pets: If your property has a strict no-pet policy or if it is not suited for large animals, make
sure to clarify this upfront.
- Smoking: If your property is smoke-free, ask whether the tenant is a smoker and explain
your policy.
- Long-term plans: Ask whether the tenant is looking for a short-term or long-term rental. If
you prefer long-term renters, it is important to know whether the tenant is on the same page.

8. Set Clear Expectations in the Lease Agreement
Once you have chosen a tenant, the lease agreement is your most important tool for setting
expectations. A clear and comprehensive lease protects both you and the tenant by outlining the rights
and responsibilities of both parties.

Key elements to include in the lease agreement:
- Rent amount and due date: Specify the exact rent amount, due date, and acceptable
payment methods.
- Security deposit: Detail the security deposit amount, how it will be held, and the conditions
for its return.
- Maintenance responsibilities: Clarify who is responsible for repairs and upkeep.
- House rules: Include any specific rules about noise levels, guests, pets, smoking, or
parking.
- Termination and renewal terms: Explain how either party can terminate the lease and the
terms for lease renewal.

By setting clear expectations from the beginning, you can avoid misunderstandings and create a positive
rental experience for both parties.

Choosing the right tenant is one of the most important responsibilities of a landlord. By following these
screening tips—using a detailed rental application, running credit and background checks, verifying
income, and contacting previous landlords—you can significantly reduce the risks associated with renting
your property.

A thorough tenant screening process not only helps you find reliable renters but also protects your
investment and contributes to the long-term success of your rental business. Remember that the time
and effort you invest in tenant screening today can save you from headaches, legal disputes, and
financial losses in the future.