What Is Tenant Screening?

Why Tenant Screening Is the Most Important Thing You Do

A bad tenant can cost you $5,000-$20,000 or more between lost rent, property damage, legal fees, and turnover costs. A good screening process is your best protection against this.

I have seen landlords skip screening because the applicant "seemed nice" or because they were desperate to fill a vacancy. Every single time, they regretted it. A vacant unit costs you one month of rent. A bad tenant costs you months of rent plus thousands in damage. The math is clear: wait for a qualified tenant.

Your screening process must be consistent and documented. The Fair Housing Act requires you to apply the same criteria to every applicant. Written screening standards protect you from discrimination claims and help you make objective decisions.

The Five Pillars of Tenant Screening

1. Credit check. Pull a full credit report (not just a score). Look at payment history, outstanding debts, collections, and bankruptcies. A credit score of 620+ is a reasonable minimum for most markets. But read the details. A 610 score from medical debt is very different from a 610 score from unpaid rent and defaulted credit cards.

2. Criminal background check. Check for felony convictions and relevant misdemeanors. Be aware that blanket criminal record bans may violate fair housing laws in some jurisdictions. Evaluate on a case-by-case basis considering the nature of the offense, how long ago it occurred, and relevance to tenancy.

3. Income verification. Require income of at least 3x monthly rent. For a $1,500 unit, that means $4,500/month gross income ($54,000/year). Verify with recent pay stubs (2-3 months), bank statements, or tax returns for self-employed applicants.

4. Eviction history. Check court records for prior evictions. An eviction in the last 5 years is a serious red flag. The best predictor of future behavior is past behavior. Most screening services include eviction searches.

5. Previous landlord references. Call the last 2 landlords (not just the current one, since the current landlord might give a good reference just to get rid of a problem tenant). Ask: Did they pay on time? Did they take care of the unit? Would you rent to them again? Any lease violations?

Real Example: Screening in Action

You have a $1,400/month unit available. Two applicants apply the same week.

Applicant A: Credit score 720, income $5,200/month (3.7x rent), no evictions, previous landlord says "best tenant I ever had, always paid early." Criminal background clean.

Applicant B: Credit score 580, income $4,500/month (3.2x rent), one eviction 3 years ago for non-payment, previous landlord says "they were OK, left the place messy." No criminal record.

Applicant A is the clear choice. But what if only Applicant B applies? This is where discipline matters. A vacant unit at $1,400/month costs you $350/week. The pressure to just accept someone is real. But Applicant B's eviction history and low credit score suggest a high probability of payment problems. The $1,400 you lose to one more month of vacancy is nothing compared to the $5,000-$10,000 a problem tenant could cost you.

Setting Your Screening Criteria

Step 1: Define minimum requirements. Credit score minimum (e.g., 620+), income requirement (3x rent), no evictions in the last 5 years, no felony convictions in the last 7 years. Write these down before you list the unit.

Step 2: Choose a screening service. Services like TransUnion SmartMove, RentPrep, or MyRental run credit, criminal, and eviction checks for $30-$50 per applicant. Most let the applicant pay the fee directly.

Step 3: Create a standard rental application. Every applicant fills out the same form with the same information. This ensures consistency and protects you legally.

Step 4: Call previous landlords. This is the most underrated part of screening. Automated reports tell you about credit and criminal history. Landlord references tell you what the person is actually like to rent to. Call at least two previous landlords.

Step 5: Document your decision. Keep notes on why you approved or denied each applicant. If denied, send an adverse action notice as required by the FCRA (Fair Credit Reporting Act) if the decision was based on a credit report.

Common Mistakes

Skipping screening because the unit is vacant. Desperation leads to bad decisions. A month of vacancy costs you one month of rent. A bad tenant costs you six months or more. Always screen.

Only checking credit score. Credit score is one data point. A tenant with a 650 score, steady income, and great landlord references is probably better than a tenant with a 720 score who was evicted from their last apartment (unusual, but it happens).

Not verifying income. "I make $60,000 a year" means nothing without documentation. Ask for pay stubs, W-2s, or bank statements. Some applicants exaggerate or outright lie about income.

Inconsistent standards. If you require a 620 credit score but approved an applicant with a 580 last month because they "seemed reliable," you have created a fair housing risk. Apply the same standards to every applicant, every time.

Not checking eviction records. A credit check will not always show eviction history. Use a screening service that specifically searches court records for eviction filings.

Frequently Asked Questions

What should I check when screening a tenant?

A thorough screening includes credit report, criminal background check, eviction history, income verification, employment verification, and previous landlord references. Apply the same criteria to every applicant.

Can I deny a tenant based on credit score?

Yes, as long as you apply the same credit score requirement to all applicants consistently. You must provide an adverse action notice under the FCRA that tells the applicant which credit bureau was used and their right to a free copy of their report.

What if an applicant has a co-signer?

A co-signer (or guarantor) can help applicants who do not meet income requirements on their own. The co-signer should be screened with the same rigor as the tenant and must sign the lease as a responsible party. Require the co-signer to have income of at least 5x rent.