Understanding Tenant Screening

Tenant screening is a systematic process used by property managers and landlords to evaluate potential renters. The primary goal is to assess whether an applicant is likely to:

• Pay rent on time
• Take good care of the property
• Comply with lease terms
• Maintain good communication

A thorough screening process involves reviewing an applicant's background, including their financial, criminal, and rental histories.

Benefits of Effective Tenant Screening

Implementing a thorough tenant screening process offers numerous advantages:

1. Reduced risk of non-payment and evictions

2. Protection against property damage

3. Enhanced financial stability and security

4. Increased property value



Key Components of Tenant Screening

1. Initial Prescreening

During your initial contact with the prospect, you should seek to understand:

• Their reasons for moving
• Their preferred lease term
• Uncover any specific needs or concerns

When you meet them to show the property, you should also observe other details such as:

• Did they arrive on time?
• How good is their communication?
• Do they seem put together/prepared?
• Do they smell like cigarette smoke?
• Is their car clean/well kept or is it cluttered and full of stuff?

2. Rental Application

After viewing the property and deciding if they would like to proceed, you should have them complete a comprehensive rental application. The application will collect:

• Personal details
• Employment information/history
• Previous addresses/landlords
• Copies of their drivers license/ID
• Copies of paystubs, bank statements, or tax returns (for self-employed), to verify income

3. Background & Credit Checks

Perform thorough background checks, including:

• Credit history review
• Criminal record check
• Eviction history search

4. Income and Employment Information

• Ensure the applicant has a stable income by:
• Verifying current employment
• Reviewing recent pay stubs or tax returns
• Confirming that monthly gross household income is at least 3 times the rent

5. Rental History

Contact current and previous landlords to:

• Verify tenancy
• Inquire about payment history
• Ask about property care and lease compliance

Legal Considerations

When screening tenants, it's crucial to adhere to fair housing laws and privacy regulations. Ensure your screening process is consistent and non-discriminatory to give prospects fair and equal consideration and to protect yourself from potential legal issues.

The Fair Housing Act protects specific groups, known as protected classes, from discrimination in housing-related transactions. The seven federally protected classes are:

1. Race
2. Color
3. Religion
4. National origin
5. Sex (including sexual orientation and gender identity)
6. Familial status (presence of children under 18 in a household)
7. Disability

Some states and municipalities have additional protected classes, such as age, ancestry, or source of income. In your communication and interaction with the public, its important to have equitable policies and standards that you apply to ALL people. And always maintain thorough documentation of all communications, including decisions and reasons for accepting or denying applicants.



Streamlining the Screening Process

To make your tenant screening more efficient, consider:

1. Creating a standardized screening checklist
2. Utilizing property management software for automated background checks
3. Implementing online rental applications
4. Establishing clear screening criteria



Red Flags to Watch For

Be alert to potential warning signs during the screening process, such as:

• Inconsistencies in the application
• Reluctance to provide references
• History of frequent moves
• Poor credit score or history of late payments
• Unpaid debts in collections
• Past evictions
• Past bankruptcies
• Forged documentation or fake references

Effective tenant screening is an essential skill for any property manager. By implementing a thorough and consistent screening process, you can significantly reduce risks, protect your properties, and ensure a positive experience for both you and your tenants. Remember, the time and effort invested in proper screening will pay dividends in the long run through reduced vacancies, fewer legal issues, and increased property value.

Don't let the challenges of property management overwhelm you. At Doss & Spaulding Properties, we take the complexity and stress out of tenant screening by offering turn key, white glove property management services. If you have questions or are interested in learning more about how we can help you with your property, contact us today.