As a landlord, you know how important tenant screening is to finding qualified renters. If you’re just starting out, though, it can be difficult to know how exactly the process works. As it turns out, screening applicants is more than just running reports. To help clear up some of the questions you might have, we’ve put together a guide on how to screen tenants in 4 easy steps.
As with most things, it’s best to go into tenant screening with a fleshed-out plan. Here’s what your screening process should include:
Let’s take a brief look at what each of these steps entail.
Passive screening begins before renters even apply. Your goal here is to reach applicants that meet your ideal, but realistic, standards. Small decisions like where you market your rental and how you choose to present it can make a big difference in attracting your preferred renters. If your ideal tenants are young families, for instance, try marketing your rental near local daycares.
Once a renter has contacted you, employ pre-screening techniques to assess their character and begin forming a relationship with them. Pay attention to how they communicate with you. Good renters will show up on time to meetings, respond quickly to emails and calls, and will be organized and professional.
It may also be helpful to ask questions like whether they have pets, when they’re looking to move in, and whether they smoke. Casual questions like these show whether or not they will be a good fit for your rental.
It’s important that your rental application collects all of the information that matters most to you. As such, pre-made applications probably won’t cut it. Customizing your application ensures that you’re asking all of the right questions.
Nevertheless, there are still a few fields that most applications include. You’ll need the applicant’s employment history, dates of employment, position, and salary, as well as their residence history and landlord contact information. You should also ask if they smoke, have ever refused to pay rent, have ever been evicted, and other important questions.
Once you’ve received an application, you should contact the applicant’s employer references. Renters are usually honest about their employment, but it doesn’t hurt to make sure. Speaking with their employers also gives you the chance to ask further questions about the applicant. Some employers will only verify the applicant’s dates of employment, but any information you gain from talking with them will help you determine whether or not the applicant will be able to consistently make rent.
No one knows whether or not your applicant will be a good tenant better than their previous landlords. As a result, be sure to reach out to the landlords listed on their application. Ask questions like whether the applicant missed rent payments, kept the rental property clean and in good condition, and was respectful towards other tenants and neighbors. This information will go a long way in helping you judge the quality of the applicant.
Background checks provide the most reliable information about the quality of an applicant. Your background checks should include credit, criminal, and eviction history reports. Each of these reports require specific information that can be difficult and time-consuming to find on your own. Luckily, there are screening services that provide reports with all of the information you need. And if you’re worried about the fees, don’t be. You can usually choose to pass screening fees onto your applicants.
Once you’ve gathered and assessed all of the information about an applicant, it’s time to make the final decision. Whether you choose to accept or deny the applicant, you should inform them promptly of your decision. When denying an applicant, it’s recommended that you do so in a letter or email and outline why you’re choosing to deny them housing.
Evaluating the information provided through screening can be difficult if you aren’t sure what exactly you’re looking for. The best way to organize and assess the information is to lay out your screening criteria, which are the minimum requirements an applicant must meet in order to be accepted.
According to the Fair Housing Act, you’re only able to legally deny an applicant if they fail to meet your requirements for one or more of the following categories:
To help streamline the evaluation process, try creating a tenant scoring system. This ensures that you’re making unbiased decisions that are compliant with Fair Housing laws.
All of the steps outlined here are necessary in order to find the most qualified renters. Just because you have a good feeling about an applicant doesn’t mean you should bypass any of the steps in your screening process.
Consistently screening all of your applicants using the same procedure also ensures that you’re providing your applicants with an equal opportunity to housing. This is necessary in order to be in compliance with Fair Housing laws.
Fair Housing laws have already come up a few times, but it’s crucial that we reiterate the importance of adhering to Fair Housing regulations. You must be sure your screening process follows federal, state, and local housing laws.
Most importantly, you cannot deny housing based on a protected class. This includes:
Be mindful of this throughout your entire screening process. Ensure that you’re making decisions based on an applicant’s genuine qualifications and not on any personal biases you might hold.
You should now be fully equipped with the ability to effectively screen your applicants. As you well know, tenant screening is necessary in order to find the most qualified renters, and it ensures that you’re acting in compliance with Fair Housing laws. Tenant screening is a must.
