Introduction

As a landlord or property manager, filling vacancies with quality tenants is paramount to success in real estate, as is using a tool like DoorWay Management. Tenant screening is the process of assessing potential tenants' suitability for a rental property. This involves performing background checks, rental histories, credit checks, and employment verification. Tenant screening can help landlords and property managers avoid costly issues like property damage and missed rent payments. According to a study by the National Multifamily Housing Council, poor tenant screening can cost landlords up to $5,000 per eviction, and over 70% of landlords have faced a problematic tenant. Therefore, effective tenant screening is a critical component of any rental business strategy. In this post, we'll explore key factors to consider in conducting a successful tenant screening process.

Key Factors to Consider in Tenant Screening

When it comes to tenant screening, credit and financial history are crucial factors to consider. A tenant's credit score offers insight into their financial responsibility, and a low score could indicate a higher risk for missed rent payments or other financial troubles. Landlords should consider a minimum credit score requirement as well as other financial factors like income and debt-to-income ratio. This information can provide a more complete picture of a tenant's financial stability and ability to pay rent on time.

Rental history is another important factor in tenant screening. Checking a potential tenant's rental history can help a landlord gauge how they have treated previous rental properties. Late payments or evictions are red flags that could indicate potential issues with the tenant. A landlord should also consider contacting previous landlords to get a sense of how the prospective tenant behaved as a renter.

Background and criminal history checks are also part of the tenant screening process. Landlords should be aware of any applicable state and federal fair housing laws that prohibit discrimination based on criminal records. However, it is still important to assess the types of criminal history that could pose a risk to the property or other tenants. Violent crimes or drug offenses may indicate a higher risk of property damage or safety concerns.

Finally, employment and income verification are critical components of tenant screening. Verifying a tenant's employment and income can help a landlord ensure that they have the financial means to pay rent consistently. Some methods for verifying income and employment include pay stubs, tax returns, and contacting an employer directly.

Additional Considerations


Personal and professional references are often used as part of the tenant screening process to gain insight into a potential tenant's behavior. These references can help landlords assess a tenant's personality, reliability, and ethical behavior. When evaluating references, landlords should ask open-ended questions to glean more information about the tenant, such as their punctuality, cleanliness, and respect for property. Evaluating personal and professional references can provide landlords with valuable information about a tenant's character and can help them assess whether the tenant is a good fit for the rental property.

Pet policies and restrictions should be addressed during the tenant screening process. While allowing pets can expand the pool of potential tenants, it is important to implement pet policies and restrictions to avoid damage to the property. Pet policies can include requirements for pet deposits, weight and breed restrictions, and damage liability. Landlords should also ensure that tenants are aware of their responsibilities in caring for their pets and maintaining the property.

Fair Housing Act compliance is crucial in all aspects of the tenant screening process. The Fair Housing Act prohibits discrimination on the basis of race, color, national origin, religion, sex, familial status, and disability. Landlords must ensure that their tenant screening practices comply with these laws. This includes avoiding discriminatory language in advertising and application materials, treating all applicants equally, and avoiding blanket policies that might inadvertently discriminate against certain groups. Additionally, landlords should ensure that they are familiar with state and local fair housing laws, which may have additional protections or requirements.

Conclusion

In conclusion, effective tenant screening is a critical aspect of maintaining a successful and profitable rental property business. By carefully evaluating potential tenants' credit and financial history, rental history, criminal history, and employment and income verification, landlords and property managers can select quality tenants who are more likely to pay rent consistently and maintain the property in good condition. Additionally, factors like personal and professional references, pet policies and restrictions, and fair housing laws must be considered to ensure that all tenants are treated fairly and equally. Ultimately, investing time and resources into effective tenant screening can save landlords and property managers significant money, time, and headaches down the road. Further time and money savings can be had if you look at this app.