How to Choose Rental Applicants: Tenant Screening Success

Choosing the right rental applicants can significantly influence your experience as a landlord or property owner. This decision is fundamental, affecting your rental income, the upkeep of your rental property, and your overall peace of mind. But how do you navigate the pool of prospective tenants and select the most suitable ones? This guide provides a detailed approach to help you choose rental applicants with confidence and diligence, which is important for all property owners. 

Choosing the right rental applicants is crucial to your success as a landlord. Our article below explains how to choose rental applicants, and covers the following key points:

• Setting clear, objective screening criteria to evaluate applicants fairly and consistently.
• Using comprehensive applications and verify employment, income, and rental history.
• Running background and credit checks to assess risk and financial responsibility.
• Following fair housing laws and document every step to ensure legal compliance.
• Making informed, professional decisions—and communicating clearly with all applicants.

Set Clear Criteria Before You Start 

Before you list your rental property or even consider applications, establish clear, objective tenant selection criteria. This foundational step helps property owners maintain fairness and consistency throughout the screening process. Defining your standards beforehand allows you to efficiently screen tenants and identify a qualified applicant. 

Consider these important factors for your tenant screening criteria: 

• Minimum income requirements: A common standard is that a prospective tenant’s gross monthly income should be at least three times the monthly rent. This helps confirm the applicant can afford rent. 
• Credit score thresholds: Determine an acceptable credit score range. A good credit history often indicates financial responsibility and a higher likelihood of timely rent payments. 
• Rental history expectations: Positive references from prior landlords regarding rent payment, property care, and adherence to lease terms are valuable. A history eviction can be a significant red flag. 
• Pet policies: Clearly define if pets are allowed, and if so, what types, sizes, or breeds, along with any associated fees or deposits. 
• Smoking rules: Specify if smoking is prohibited on the property or restricted to certain areas. 

Having these standards established from the outset makes it simpler for landlords to choose rental applicants who align with their expectations for the property. These criteria should comply with all fair housing laws to avoid discrimination. Documenting your criteria also provides a reference point if any applicant questions your decision-making process. 

Create a Comprehensive Application Form 

Your rental application is a critical tool for gathering essential information from every prospective tenant. A well-designed form ensures you collect consistent data, which is vital when you screen tenants. Make your rental applications thorough and easy to understand.

Your comprehensive rental application form should include dedicated sections for: 

• Personal information: Full name, phone number, email address, and current address of each adult applicant. 
• Employment details: Current and previous employers, job titles, length of employment, and supervisor contact information for verifying income. 
• Income verification: Gross monthly income from all sources, with space for applicants to list different income sources. 
• Rental history: Previous addresses, landlord contact information, reasons for leaving, and duration of stay for each previous rental. 
• References: Both personal and professional references who can speak to the applicant’s character and reliability. 
• Authorization for checks: A clear statement authorizing you to perform background checks, a credit check, and contact references and employers. This section should also mention any application fee. 

A detailed rental application provides the necessary information to make an informed decision and begin the tenant screening process. Ensure your application process is straightforward and that all applicants complete the form fully. This initial step helps landlords choose suitable tenants by providing a solid base of information for evaluation. 

Run Background and Credit Checks 

Once you have rental applications, it’s time for deeper investigation through background checks and credit checks. These are indispensable tools to choose rental applicants and assess potential risks. Many landlords use a professional tenant screening service for this purpose, which can often provide a comprehensive tenant screening report. 

These checks should be conducted consistently for all applicants to comply with fair housing laws. Remember to obtain written consent from the applicant before running these reports. The information these reports provide is crucial for assessing an applicant’s reliability. 

Background Checks 

A background check will reveal important information about an applicant’s past, including any criminal history. This is vital for the safety of your property and other tenants. Focus on convictions that are relevant to tenancy, such as: 

• Violent crimes: Offenses that could pose a threat to the safety of neighbors or the community. 
• Property-related offenses: Such as vandalism, arson, or theft, which could indicate a risk to your rental property. 
• Drug-related convictions: Particularly manufacturing or distribution, which can lead to property damage and illegal activity. 
• History of eviction: Some background checks will also show previous eviction filings or judgments. 

Review any criminal background information in accordance with local and federal housing laws, including HUD guidelines on considering criminal records. Not all criminal records will disqualify a potential tenant, so assess the nature, severity, and time passed since any offense. 

Credit Checks 

A credit report offers a detailed look into a prospective tenant’s financial habits and responsibility. A credit check is a key part of evaluating if an applicant can consistently manage their finances and afford rent. Pay close attention to several aspects of the credit history: 

• Credit score: While not the only factor, a higher credit score generally indicates better financial management. Some property managers set a minimum credit score requirement. 
• Payment history: Look for a consistent record of on-time payments for debts and bills. Late payments or accounts in collection are red flags. 
• Outstanding debts: A high debt-to-income ratio might impact the applicant’s ability to make rent payments, even with sufficient income. 
• Bankruptcies or foreclosures: These events can indicate past financial difficulties, though the circumstances and timing should be considered. 
• Tenant credit: Some reports specifically highlight issues related to previous rental obligations. 

A poor credit history doesn’t automatically disqualify an applicant, but it does warrant further investigation or potentially a higher security deposit if allowed by law. Using a tenant screening service can simplify obtaining and interpreting these reports. This part of the screening process helps property owners select a qualified applicant by understanding their financial track record. 

Verify Employment and Income 

Confirming that a prospective tenant can reliably afford the rent is a critical step when you choose rental applicants. The general guideline for property managers is that the applicant’s gross monthly income should be at least three times the monthly rent; this is known as the rent-to-income ratio. This ratio helps ensure the applicant is not overextending themselves financially by taking on the rent payment. 

Do not solely rely on the information provided on the rental application. Proactive verification of employment and all stated income sources is essential. Contact their current employer to confirm: 

• Current employment status: Is the applicant actively employed as stated? 
• Length of employment: Longer, stable employment history is generally a positive sign. 
• Salary or wage information: Confirm the stated income to ensure the applicant can afford rent. 
• Prospects for continued employment: If possible, gauge if the employment is stable. 

For self-employed applicants or those with non-traditional income sources, request additional documentation. This can include recent tax returns (such as W-2s or 1099s), bank statements from the last few months, or signed letters from clients or accountants. Verifying income thoroughly helps you determine if the applicant can consistently handle paying rent and reduces the risk of future financial issues for both the tenant and the property owner. 

When assessing if an applicant can afford rent, consider all verifiable income sources, including child support, alimony, disability payments, or investment income, provided they are consistently received and legally documented. Ensure your income verification process is applied uniformly to all potential tenants to comply with fair housing regulations. This diligence in verifying income helps property owners secure financially responsible tenants for their rental property. 

Check Rental History and References 

An applicant’s past behavior as a tenant is often a strong indicator of their future conduct. Thoroughly checking rental history and contacting references are vital components when you choose rental applicants. This step provides insights that a credit report or background check might not reveal. 

Contact previous landlords, especially the most recent ones, to ask specific landlord questions. Prepare your questions in advance to ensure you gather consistent information. Important questions for prior landlords include: 

• Did the tenant consistently pay rent on time? Late rent payments are a common issue for landlords. 
• Did they maintain the rental property well and leave it in good condition? 
• Were there any complaints from neighbors or other tenants regarding their conduct? 
• Did they adhere to the terms of the rental agreement, including policies on pets or smoking? 
• Did they provide proper notice before vacating the property? 
• Would you rent to this person or these prospective tenants again? This is often a very telling question. 

Be wary if an applicant cannot provide references from prior landlords or if the information seems suspicious. If a prospective tenant has no previous rental history, such as a young adult moving out for the first time, you may need to rely more heavily on other factors like income, credit history, and personal references, or consider requiring a co-signer. Document all conversations with references for your records. 

Don’t overlook personal or employer references. While they might be biased, they can still offer additional perspectives on the applicant’s character, responsibility, and stability. An employer can confirm job stability, which relates to the ability to make rent payments. This comprehensive approach to checking rental history helps landlords choose a reliable and responsible tenant. 

Interview Top Candidates 

After thoroughly reviewing applications, conducting background and credit checks, verifying income, and checking references, you should have a shortlist of potential tenants. Consider conducting brief interviews with these top candidates. An interview provides an opportunity to get a sense of the applicant’s personality and to clarify any outstanding points from their application. 

The interview can be conducted in person (perhaps during a property viewing) or over the phone. This interaction allows you to: 

• Assess their communication style and general demeanor. 
• Clarify any ambiguities or inconsistencies found in their rental application or during the verification process. 
• Discuss your expectations for the property, including maintenance responsibilities and community rules. 
• Answer questions the prospective tenant may have about the property, the lease, or the neighborhood. 
• Reinforce aspects of the rental agreement before they commit. 

During the interview, maintain a professional and objective approach. Ask all candidates a consistent set of landlord questions to ensure fairness and avoid any appearance of discrimination. Trust your judgment, but base your final decision on the objective criteria you established earlier, not solely on a “gut feeling” from the interview. This step helps in choosing a tenant who not only meets the criteria on paper but also seems like a responsible and respectful individual for your rental property. 

Make Your Decision Objectively 

When it is time to choose rental applicants, your decision should be based firmly on your pre-established, written criteria. Objectivity is paramount to ensure fairness and compliance with fair housing laws. Avoid making decisions influenced by personal biases or based on protected characteristics such as race, color, religion, national origin, sex, familial status, or disability. 

If you find yourself with multiple qualified applicants who all meet your standards, you might need to use secondary, objective factors to make the final choice. Consider aspects such as: 

• The earliest date they can responsibly move in and sign the rental agreement, which impacts your vacancy period. 
• The stability of their employment and income sources, suggesting long-term reliability for rent payments. 
• The strength of their rental history and references from prior landlords. 
• Completeness and timeliness of their application process. 

Document the reasons for your selection and for declining other applicants. This documentation can be crucial if your decision is ever challenged. Your primary goal is to find an ideal tenant: someone who is financially responsible, will take good care of your rental property, and will be a good neighbor. Making a well-informed, objective decision is key to a positive landlord-tenant relationship and safeguarding your real estate investment. 

Communicate Your Decision Professionally 

Once you have made your decision and selected your new tenant, it is important to communicate with all applicants in a timely and professional manner. For the successful applicant, clearly outline the next steps. This typically includes signing the rental agreement, paying the security deposit and first month’s rent, and coordinating the move-in process. 

For the applicants you did not select, a courteous notification is good practice. While you are not always legally required to provide a reason for rejection (unless the decision was based on information from a credit report, in which case adverse action notice requirements apply), a brief, polite message can be helpful. You might state something like: 

“Thank you for your interest in our rental property located at [Property Address]. We received many applications and have chosen another applicant whose qualifications more closely matched our current needs. We wish you the best in your housing search.” 

Prompt and professional communication reflects well on you as a landlord or property manager. It maintains goodwill and ensures that all potential tenants feel they were treated respectfully throughout the application process. This approach also minimizes potential misunderstandings or complaints from applicants who were not chosen. 

Stay Legal and Fair 

Throughout the entire process of choosing rental applicants, from advertising your rental property to signing the rental agreement, adherence to fair housing laws is critical. These laws are in place to prevent discrimination in housing-related transactions. Federal fair housing laws prohibit discrimination based on: 

• Race or color 
• National origin 
• Religion 
• Sex (including gender identity and sexual orientation in many interpretations and local laws) 
• Familial status (presence of children under 18 or pregnancy) 
• Disability (physical or mental) 

Many states and local municipalities have additional protected classes, such as age, marital status, source of income (e.g., housing vouchers), or veteran status. As a property owner or landlord, you are responsible for knowing and complying with all applicable federal, state, and local housing laws. Consistent application of your screening criteria to every prospective tenant is a cornerstone of fair housing compliance. 

Keep detailed records of your screening process, including your criteria, all rental applications received, verification efforts, and the reasons for accepting or denying applicants. This documentation can be invaluable if a discrimination complaint is ever filed. If you are unsure about any aspect of fair housing compliance or need legal advice regarding a specific situation, consult with an attorney specializing in real estate or landlord-tenant law. Maintaining a fair and legal tenant selection process protects you from liability and helps build a positive reputation in the real estate community. 

Additionally, respect the applicant’s privacy by handling their personal information securely and in accordance with your stated privacy policy. Properly dispose of any documents containing sensitive information once they are no longer needed, following legal requirements for record retention. A transparent screening process, guided by clear policies, builds trust with potential tenants. 

Consider Using a Property Management Company 

If the responsibilities involved in choosing rental applicants seem extensive or too time-consuming, or if you want to ensure maximum compliance, consider engaging a professional property management company. A reputable property manager or management company can handle the entire tenant screening process on your behalf. This is a common choice for property owners who live far from their rental property or who manage multiple units. 

Property managers are typically well-versed in effective marketing, tenant screening best practices, and current housing laws. Their services can include: 

• Marketing your rental property across various platforms to attract a wide pool of prospective tenants. 
• Conducting showings and managing inquiries from potential tenants. 
• Processing rental applications and performing thorough tenant screening. 
• Handling comprehensive background checks and credit checks, often through a professional screening service. 
• Diligently verifying employment details and income sources to ensure an applicant can afford rent. 
• Contacting prior landlords and checking references. 
• Ensuring strict compliance with all federal, state, and local fair housing laws, which helps property owners avoid legal pitfalls. 
• Preparing and executing the rental agreement. 

While hiring a property management company involves a fee, typically a percentage of the monthly rental income, the benefits can outweigh the cost. A good property manager frees up a landlord’s time, cuts down on worry, and stops bad tenants or legal headaches before they start. Imagine having someone help you find excellent renters and keep them around. That’s how they make your property investment less stressful and more rewarding. Beyond just talking points, property management blogs often lay out the smart plays for choosing renters who’ll treat your place like their own.

Conclusion on how to choose rental applicants:

If you own rental property, learning to pick great tenants directly affects your profits and how stress-free your business becomes. Starting with clear expectations sets the foundation. A rigorous and uniform screening of all prospective residents follows. When final determinations are rendered with impartiality, the likelihood of securing an exemplary occupant substantially rises. Picking the best renters for your property now saves you from big headaches and draining your wallet later. This holds true whether you own the place or help others manage theirs. Choosing the right renter keeps your property safe and your rent money coming in steadily.

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