Screening potential tenants can be a fast-paced process, often taking only 24 to 48 hours from application to decision. To ensure you find the right fit for your property, it's crucial to set clear criteria and apply the same standards to all applicants. Here is a comprehensive guide to help you through the process, from pre-screening to welcoming your new tenant.

Setting Your Criteria

Before you start, you must define what you're looking for in an ideal tenant. To avoid discrimination, these criteria must be applied equally to everyone. Consider including the following requirements in your property listings to attract suitable applicants from the beginning:

Minimum monthly income, typically three times the monthly rent.
Minimum time at their current employer.
A history of on-time rent payments for a specified number of months.
Criminal record history.

Make sure to research Fair Housing Laws to ensure your criteria do not violate the Fair Housing Act. If you need assistance, consult a lawyer or a property management company.

The Screening Process

Pre-Screening Phone Call

The first step is a pre-screening phone call with the applicant. This is an opportunity to get to know them and confirm details about the property. During this call, you should:

Confirm the property location.
Describe the property, neighborhood, and amenities.
Schedule a time to show the property.
Inform them about the screening process.
Discuss move-in dates and any policies regarding pets or related fees.

Showing the Property

This is your chance to meet the applicant in person and see if they align with the information you've gathered so far. Pay attention to any "in-person red flags" where their behavior doesn't match their application. Ask why they are interested in the property and encourage them to share what they're looking for. At this stage, you'll likely know if the applicant is a good fit and if you should continue with the screening process.

The Rental Application

If the applicant is still interested, have them complete a rental application. This should be designed to easily collect necessary details, including:

Name and contact information.
Employment and income details.
Rental history and references.
Other relevant information like a desired start date, pets, or children.

Running a Background Check

After collecting the application fee, it's time to run a comprehensive background check. Remember to get the applicant's consent, which can be part of the online application. Check their:

Financial History: Look for bankruptcies or delinquencies and review their credit score.
Employment History: Confirm a consistent work history and their current employment status.
Criminal History: Be aware that you cannot have a blanket policy against renting to tenants with a criminal history. Consult a legal professional for guidance on Fair Housing Act compliance.
Rental History: Watch for frequent address changes or a history of evictions. Contact previous landlords to ask about their experience with the tenant and if they would rent to them again.
References: Call and verify references. Be cautious if their stories seem too consistent, as this could indicate the applicant coached their references.

Finalizing Your Decision

After reviewing the paperwork and your interactions with the applicant, compare them against your set criteria.

Do not reject anyone based on factors that violate the Fair Housing Act or the Americans with Disabilities Act, such as race or disability. It is better to have an empty property than a bad tenant, so don't rush the decision.

Acceptance: If the applicant meets your criteria, send an acceptance email and begin the onboarding process.
Denial: If your gut feeling and the screening results suggest they are not a good fit, send a denial notice. Ensure this action aligns with the Fair Credit Reporting Act (FRCA) policies for adverse actions.

Welcoming Your New Tenant

Once you've selected a tenant, it's time for the final steps:

Onboarding: Schedule a time to review policies and procedures, including when rent is due, late fees, maintenance requests, and emergency protocols.
Lease Agreement: Finalize the lease agreement.
Move-in Inspection: Before they move in, conduct a move-in inspection with the tenant present. Document the condition of the home and keep it with their files. Show them how to use appliances and any security systems.

Congratulations! You have successfully screened and welcomed a new tenant to your property.

A Landlord's Guide to Tenant Screening