Establishing Rental Screening Criteria

This is a comprehensive guide on how to screen tenant applicants efficiently and effectively.

Every professional property manager and landlord will have rental screening criteria set in place to screen future tenants before signing onto a lease. These checks may include prior rental history, work references, rent-to-income ratio, credit profile, eviction and unlawful detainer history, and proof that the applicant can meet the rental requirements.

That criteria is what lets a manager establish that a prospective tenant is reliable and can meet the requirements of the tenancy. Screening requirements sit inside a legal and ethical framework, so it is strongly recommended that your screening policies are written down and reviewed by your own legal counsel.

Why do I need screening criteria?

Objective, consistent checks are what give you confidence that a future tenant will pay their rent and look after the property. Some landlords prefer to judge an applicant on how personable or polite they seem, and that can lead to poor outcomes. Without checking employment and tenant history, an applicant who interviews well may still prove to be disruptive and unreliable, costing both money and time.

This is not to say there are no exceptions. Someone lower on the income spectrum may be able to offer a larger deposit to offset the added risk of signing them onto a lease. Someone with no tenant history at all may provide glowing employment and character references attesting to their dependability. If you do make an exception based on a contributing factor like that, make sure it is well documented.

Overall, having rental screening criteria is what makes qualifying applicants consistent, objective, and fair.

First come, first served

When you process rental screening checks, the usual practice is to accept the first applicant who meets your criteria. Selecting a later applicant because they have a higher income or more rental references — after an earlier one already qualified — is the kind of decision that invites a discrimination claim. In practice that means noting the date and time each application arrives, processing them in that order, and contacting the first applicant you accept. The requirements that apply to you vary by jurisdiction, so confirm them with your own legal counsel.

Extra tips

Attach your selection criteria to the rental application itself, so every applicant knows the requirements before they apply.

You can change the criteria at any time — if there is an economic downturn, for example, and the income you require has become unrealistic. Just document the change immediately, and apply the new criteria consistently from that point onward.

If you accept the combined income of a couple when assessing your income requirement, be prepared to extend the same treatment to applicants who are not married — roommates, an unmarried couple, or family members. Many jurisdictions require it.

This is by no means an exhaustive article on renter screening checks, so do an appropriate amount of research before you start applying your checks to applications.