The Best Tenant Screening Criteria

If you don’t have this set and you are planning to be a landlord, don’t wait! Get these written into a policy right now. Here’s what to do:

Screening criteria is the bare minimum you will accept in a tenant to lease to them. It’s important to set this first so you aren’t discriminating. Then, you need to stick to it! Don’t allow yourself to fudge on some criterion because you like them or feel bad for them. It’s important to get the emotion out of it and having a policy is a perfect way to do it.

First, write down the questions you want answered before doing a showing. Showings of the unit take time and can be wasted if the tenant isn’t the right one. You need to ask a standard set of questions before even seeing the tenant.

Primary Screening Questions

1. Why are you moving?
2. Is your monthly income at least 3 times the rent?
3. We require a credit and background check. Will that be OK with you? (You require this and if they won’t do it then they are out)
4. Do you have pets? (you can’t ask if they have service or emotional support animals but some will volunteer this when you tell them the pet rent)
5. Do you smoke? (Hard NO)
6. Who will be signing the lease with you? (you aren’t allowed to ask about familial status, like ‘do you have kids?’ but this question is neutral)
7. Will you have any adult roommates not signing the lease? (if so, they are a big NO)
8. Have you ever had an eviction, foreclosure, or bankruptcy (if so, it’s a NO, exception: if they are > 7 years in the past, it’s a maybe)

Now that the initial screening is done, you should inform them of the requirements for an application. If they pass all of these checks, then you can do a showing.

Secondary Screening Information

1. Personal information, including a copy of the driver’s license (very important should you need to evict later)
2. At least two previous landlord contact information for reference (and take the time to actually call them)
3. Consent for a credit and background check
4. The application fee is available
5. Current employer’s contact information (verify this, too)

Make sure you put all these things into a policy.

Items for Tenant Screening Policy

1. Income of all tenants (who sign the lease) together is 3x the monthly rent
2. Credit score is > 669
3. No evictions on background check
4. No bankruptcies on background check
5. No more than 10 derogatories on the credit check (these might be late payments or worse)
6. No violent felonies

As always, check your state and municipal laws as you can ask some things in some areas and not in others. Some of these can be modified for your own needs, but set them and stick to them. Once you have the policy set, create a checklist so you do it the same way every time. And don’t sacrifice your bottom numbers just to get someone in because you have a vacancy for 2 months. Believe me, it’s way better to eat the rent loss for vacancy than have to evict. I’ve been there. Doing these things will vastly help you get good tenants.

Pro tip: Have a discrete look at their vehicle when you do the showing. If it’s not kept well, for instance trash all over the inside, they will probably keep the unit in the same way.

Pro tip #2: Trust your gut – only if your gut says ‘don’t rent to them’. If your gut says to rent to them, only do so if they meet your criteria. Your gut is only 1/2 good.