How to Screen Tenants: Best Practices for Landlords

Having great tenants is every landlord’s dream. After all the effort put into building or maintaining a property for rent, the last thing anyone wants is unreliable and stubborn tenants. Finding tenants who take care of your property and adhere to guidelines and rules is crucial. Here are some best practices for screening tenants to ensure you get the right people for your rental property.

Table of Contents

Create a Detailed Rental Application

A comprehensive rental application is the first step in screening potential tenants. This application should ask for:

Personal information: Full name, contact details, and social security number.
Employment details: Current and past employment, including employer contact information.
Rental history: Previous addresses, landlord contact details, and reasons for leaving.
References: Personal and professional references who can vouch for the applicant’s character.
Consent for a background check: Explicit permission to run credit and criminal background checks.

Conduct Thorough Background Checks

How to Screen Tenants: Best Practices for Landlords

Running background checks is essential to understand who your potential tenants are. Here are the key checks to conduct:

Credit Check: This helps assess the applicant’s financial responsibility. Look for a good credit score, timely payments, and any red flags like bankruptcy or a high level of debt.
Criminal Background Check: Ensure the applicant has no history of serious criminal activity. This helps maintain a safe environment for all tenants.
Eviction History: Check if the applicant has any previous evictions. A history of eviction can be a red flag, but it’s important to understand the context before making a final decision.

Verify Employment and Income

Stable employment and sufficient income are indicators of a tenant’s ability to pay rent on time. Request recent pay stubs, tax returns, or bank statements to verify their income. As a rule of thumb, tenants should have a monthly income at least three times the rent amount.

Check Rental History and References

Contact previous landlords to inquire about the applicant’s rental history. Ask about:

Timeliness of rent payments
Care of the property
Compliance with lease terms
Any complaints or issues

Additionally, speak to the personal and professional references provided to gain further insights into the applicant’s character and reliability.

Conduct an Interview

Meeting potential tenants in person or through a video call can provide valuable insights that documents alone cannot. This interaction allows you to:

Gauge their personality and demeanour
Clarify any information on the application
Explain your expectations and the property rules

Set Clear Criteria and Be Consistent

Establish clear, non-discriminatory criteria for tenant selection and apply these consistently. This helps in making fair decisions and avoiding potential legal issues. Your criteria might include minimum credit scores, income thresholds, and acceptable background check results.

Trust Your Instincts

While it’s important to rely on objective data, trusting your gut feeling is also crucial. If something feels off during the process, take the time to investigate further. A combination of thorough screening and intuition often leads to the best tenant choices.

Document Everything

Keep detailed records of the screening process, including applications, background checks, and correspondence. This not only helps in making informed decisions but also provides documentation in case of any disputes or legal challenges.

READ MORE: Choosing A Tenant

Conclusion

Screening tenants effectively is a critical part of successful property management. By following these best practices, you can minimise risks and ensure you select responsible and reliable tenants. Remember, a little diligence upfront can save a lot of headaches down the road, leading to a positive rental experience for both you and your tenants.