How to Screen a Potential Tenant

Learning the warning signs of a irresponsible tenant prevents lost income and damage to the property.

Landlords screen potential tenants to determine their suitability as a renter, and to also check that they will be able to pay the rent on time. A well designed rental application gives the landlord much of the information they need to make the decision, but there are a few other steps in the screening process that can prevent you from renting to a irresponsible tenant. The right tenant will make the rental process much easier.

Things You'll Need

• Rental application

Instructions

1. Look for tenants that report a gross income that is at least triple the rent cost. The experts at Landlord Advice explain that this helps ensure that they can pay their rent every month. It's also recommended that you explain this policy to the applicants.

2. Order a credit and background check on prospective tenants. The Realty Times website says that this will allow you to view any outstanding debt or unpaid bills a tenant might have, or any criminal background that could be a red flag. The Federal Credit Reporting Act requires you to send a letter explaining your decision to any tenants that you turn away due to their credit score.

3. Call the references, employers, and previous landlords listed on the rental application. The experts at NOLO say that this will provide you with a clear picture of the tenant's behavior and responsibility.

4. Request a public records search along with the credit check. The Landlord Advice website says that this will alert you of any prior evictions that a tenant has on his record. While a single eviction far in the past may not be enough to disqualify a tenant, reconsider if the report shows a string of evictions or a recent eviction.

5. Examine the tenant's banking records, if they provide them. Bank statements let a landlord evaluate how well a tenant budgets her money. Constant overdrafts or a general lack of funds in the bank account may indicate that the tenant will not be able to pay their rent in full.

Tips & Warnings

• Applications without landlord references, or with only personal friends and family members listed, may be a red flag.

• Avoid accidentally or purposely discriminating against a tenant based on their age, race, gender, national origin, ancestry, disability, or familial status. Even asking certain questions can be discriminatory, which is why most experts recommend using a professional written rental application.

References

• Realty Times: When You Screen Tenants, Make Sure the Law is On Your Side
• NOLO: How to Screen and Select Tenants FAQ
• Landlord Advice: How to Screen a Potential Tenant

Resources

• The Landlord Protection Agency: How to Screen Tenants in 5 Easy Steps