How to Screen Renters: 6 Steps to Find Perfect Tenants

Last year, landlords filed over 1.1 million eviction cases across the country. No matter where your property is, evictions are time-consuming and expensive. Turning over a property and getting it ready for a new tenant costs you lost rent, cleaning fees, repairs, and valuable time.

You can increase your chances of selecting reliable tenants with a thorough screening process. This article covers how to screen renters, detailing the importance of this process as your first line of defense against problematic renters and the legal considerations you need to keep in mind. We also outline a step-by-step approach to vetting potential tenants and review top tools and applications to streamline your screening process.

Implementing a thorough tenant screening strategy helps minimize risks, reduces the likelihood of evictions, and maximize your rental income.

Understanding tenant screening

Tenant screening is the process of exploring a potential tenant's background before signing a lease and handing over the keys to your property. Effective screening helps you spot red flags, such as a history of late payments, property damage, or evictions.

Think of it as a safeguard for your investment. You're not just looking for someone who can pay the rent — you want someone who will pay on time, every time, and treat your property like it's their own. Proper screening can save you from the hassle of chasing down rent, dealing with property damage, or, worst-case scenario, going through a costly eviction process.

Benefits of a tenant screening process

A good tenant screening process does more than just filter out potential troublemakers. It's a tool that can greatly improve your rental business.

• Reduce legal risks: Using a renter screening process can help reduce your legal risks. For example, landlords have a duty to provide safe and habitable housing for their renters. If you fail to screen tenants that have a history of being a nuisance tenant, this can increase your liability.
• Protect your rental property: Renter screening helps you avoid fraudulent applications or scams like identity theft, forged documents, and applicants posing as someone else to gain access to your property.
• Reduce turnover rates: In addition to potential property damage and unpaid rent, evicting tenants increases turnover. Every tenant turnover brings expenses to your rental business, such as eviction lawsuit fees, getting the property ready to re-rent, and advertising for new tenants.
• Increase rental income: Reliable tenants increase income because you're more likely to receive rent on time and less likely to have repair costs due to property damage.

Fair housing laws and renter screening

During your tenant screening process, you'll want to follow fair housing laws. These regulations support protected classes from housing discrimination. This includes race, color, national origin, religion, sex, familial status, and disability.

All of the following scenarios violate fair housing laws:

• Discriminatory rejection: Refusing to rent to a tenant based on their membership in a protected class, such as race, is an example of violating fair housing laws.
• Unfair terms: You can't set different terms, conditions, or privileges for your rental based on protected characteristics, like charging a higher security deposit to families with children.
• Biased advertising: The laws prohibit advertising or making statements that indicate a preference or limitation based on protected classes. Posting a rental ad stating "single adults preferred" violates local fair housing laws.
• False availability: You can't falsely say that a rental unit isn't available to protected class members. For example, you can't tell an applicant of a certain national origin that the unit is no longer available when it is actually still available.
• Retaliation: Property owners can't harass or intimidate anyone exercising their fair housing rights, such as threatening to evict a tenant who files a fair housing complaint.

State laws for screening tenants

Beyond federal fair housing laws, there may also be state and local laws that regulate how landlords screen renters. Here are a few examples.

California

• Protected classes: California's Fair Employment and Housing Act (FEHA) protects tenants from discrimination based on more characteristics than the federal fair housing laws.
• Screening criteria: The state's law regulates the denial of a prospective tenant. Landlords cannot deny tenancy solely based on a tenant's lack of rental history and automatically deny tenancy based on poor credit or criminal records.
• Application fees: California law caps application fees. As of 2024, the maximum a landlord can charge is $63.70, and the amount changes annually based on the Consumer Price Index (CPI).

Florida

• Protected classes: Florida landlord-tenant law does not have additional protected classes beyond the fair housing laws at the federal level.
• Screening criteria: Landlords can conduct credit checks and review criminal records as part of the screening process.
• Application fees: Florida does not have a state cap on the amount of lease application fee a landlord can charge.

New York

• Protected classes: New York's State Human Rights Law covers protected classes beyond the Fair Housing Act. It prohibits discrimination in areas like employment and public accommodations.
• Screening criteria: Landlords cannot ask about criminal history until after making a conditional offer of housing, and they cannot automatically deny tenancy based on poor credit. Landlords must obtain written consent from applicants before conducting background checks or credit checks.
• Application fees: Landlords cannot charge more than the actual cost of the background check.

Texas

• Protected classes: The state of Texas requires landlords to comply with fair housing laws.
• Screening criteria: Landlords must provide potential tenants with a written list of tenant selection criteria before accepting an application fee. This list should outline the factors that landlords consider in the screening process.
• Application fees: There isn't a cap on application fees.

How to screen renters

Now that you understand why screening matters, let's go step-by-step through the process that covers all the bases to choose the right tenant.

Step 1: Define rental criteria

Start by documenting your screening criteria. These are the set of requirements that you'll use for every prospective tenant. This list and universal enforcement helps protect you from discrimination claims. Here are some key elements to include:

• Income: Specify your income criteria. Most landlords look for renters whose income is at least 2.5 to 3 times the monthly rent. This helps confirm that they can afford the rent and other living expenses.
• Credit: Look for a credit score that meets your minimum threshold, typically around 620 or higher, depending on your standards and the local market.
• Employment history: You may require prospective tenants to demonstrate that they are currently employed and have been with their current employer for a certain period of time.
• Rental history: You could specify that potential renters do not have an eviction history.
• Occupancy limits: Your rental property can only house so many people, and your screening criteria should list the maximum number of occupants you can accept.
• Pets: If you accept pets, your criteria might explain which pets you allow. If you don't accept pets, this could disqualify prospective tenants.
• Smoking: You may have a no-smoking indoors policy, which can disqualify a renter.

As examples, landlords on the r/realestateinvesting subreddit shared their some of their rental criteria:

Credit scores: This was the most frequently mentioned criterion.

• itsbdk (former property manager): "Credit score over 600."
• Embarrassed-Flan-363: "Credit score 675+. No exceptions."
• cubz: "Credit score credit score credit score. It has proven to be the most important indicator. 600 minimum, but the higher, the better."

Additional financial criteria: Landlords consider other financial factors beyond credit scores.

• itsbdk: "No open or multiple bankruptcies, no collections or judgments from previous landlords, and three times the monthly rent in verifiable monthly income."
• Illimitable1: "Needs paystubs showing 3x rent. Needs at least one employment reference that can verify current employment and pay."

Rental history: Landlords look at past rental behavior.

• itsbdk: "No prior evictions."
• Gdubrocks: "No evictions, no evictions, no evictions, no evictions, no sob stories, no evictions."

Pet policy: Opinions on pets vary among landlords.

• tropicsGold: "I agree on the pets. What a great pool of tenants, and they are very loyal to landlords who let them have pets."
• Gdubrocks: "I allow pets."
• GirlStiletto: "No pets at all."

Step 2: Select a tenant screening platform

With your criteria in hand, it's time to choose your screening tool. Here are a couple of options to consider:

• Tenant screening services only: You can use a standalone tenant screening service. Usually, you'll direct a potential tenant to an online portal, where they pay a screening fee, and you receive the report.
• Property management software: An efficient way to handle tenant screening is by leveraging property management software that covers the entire rental process. This approach automates each step, from online applications and screening to lease agreements and rent collection.

Step 3: Collect rental applications

Whichever tenant screening services you choose, the next step is to collect rental applications from potential tenants. Use an online application to simplify the process and set expectations for your rental applications:

• Your screening criteria: Specify the minimum requirements for income, credit score, rental history, and references. This helps filter out unqualified applicants early in the process.
• Pet or smoking policies: List your policies regarding pets and smoking, including any breed restrictions, pet deposits, or additional fees. Transparency here can save time by avoiding applicants who don’t meet these criteria.
• Fair Credit Reporting Act (FCRA) compliance: Inform applicants that you will be running credit reports and other background checks in compliance with the FCRA. Make sure you get consent for these checks within the application.
• Application fees: If applicable, mention any fees associated with processing the rental application, such as those for credit and background checks, and explain if these are non-refundable.
• Approval process timelines: Provide a realistic timeline for how long the screening process will take and when applicants can expect to hear back from you. This helps manage expectations and reduces follow-up inquiries.
• Required Documentation: List any additional documents that applicants must provide, such as proof of income, identification, and references. This ensures you collect all the information you need upfront.

Step 4: Run an automated screening process

Run the prospective tenant application through the screening process. The service you choose usually includes these checks:

Verification of applicant identity

Tenant screening reports include identity verification, which helps landlords detect potential fraud. Screening services examine the information the applicant provides against multiple databases to cross-check the following:

• Social Security number
• Address history
• Public records
• Credit bureau data

Credit report

You'll also receive a copy of the potential tenant's credit history. You can understand how they handle their finances and if they have a history of paying their bills on time. The credit report includes the following:

• Overall credit score.
• Payment history for credit cards, loans, and other accounts.
• Current balances on various credit lines.
• Credit utilization for the percentage of credit they have available.
• Public records on bankruptcies, foreclosures, or civil judgments.
• Length of credit history and how long the applicant has had credit accounts.

Background check

You'll receive a tenant screening report detailing the applicant's criminal history at local, state, and federal levels. This reveals any past convictions or ongoing legal issues that might affect tenancy. Some checks also include sex offender registry searches.

Employment history

Screening reports verify employment details such as current employment status, job title, length of employment, and income. They may also include past employment to establish a pattern of job stability. This information helps property managers assess the applicant's ability to meet rent obligations consistently.

Rental history

This check examines the applicant's past experiences as a tenant. It typically includes contacting current and previous landlords to verify tenancy dates, rent payment history, property care, and reasons for leaving.

This data also gives you a history of any prior evictions or lease violations, providing insight into the applicant's reliability as a tenant.

Step 5: Personally connect with prospective tenants

Contact the applicant directly to discuss their application and the rental property. This allows you to assess their communication style and personality fit and ask the applicant about any red flags you see in their screening report. For example, you may ask about any of the following:

• Gaps in employment history.
• Previous evictions or late rent payments.
• Explanations for low credit scores.
• Their long-term plans for renting.

This personal interaction can provide information you won't find in the screening paperwork. It also allows the applicant to ask any remaining questions about the property and rental terms.

Step 6: Make a decision

Once you've reviewed the tenant screening report against your decision criteria, make a decision on the prospective tenant. Stay objective and stick to your documented standards to avoid violating fair housing laws. Depending on your decision, you'll take one of these actions:

• Move forward: Inform the prospective tenant that they can proceed and outline the next steps. These typically include signing a lease agreement and collecting the first month's rent and security deposit.
• Application denial: If you decide to decline an application, send an application denial letter. This letter should include the reason for the denial and details on how the applicant can get a copy of their credit report.

Applications for screening tenants

The best tenant screening services make it easy to gather complete data on prospective tenants for your investment property. Top services to consider include the following:

Azibo

Azibo's all-in-one platform gives you everything you need to screen renters and manage your rental properties. Key capabilities include the following:

• Online applications: Azibo offers an online application process that helps landlords easily collect and review tenant applications, enhancing the initial interaction and making tenant screening more efficient.
• Tenant screening: The platform provides comprehensive screening tools, including credit, criminal, and eviction checks, giving landlords a complete picture of prospective tenants.
• Rent collection: Azibo allows you to easily collect rent online and allow renters to use multiple payment options, such as ACH, debit, and credit cards. It also includes automated capabilities, such as sending rent reminders and adding late fees if applicable.
• Accounting: Integrated accounting tools allow landlords to track income and expenses and generate financial reports, simplifying bookkeeping and tax preparation.
• Financial management: Azibo streamlines financial management by offering tools to automate invoicing, track cash flow, and create detailed financial reports, helping landlords optimize their investment property finances.
• Maintenance and messaging: The platform centralizes maintenance requests and tenant communication, allowing landlords to manage repairs and interactions efficiently.
• Document storage: Azibo provides secure digital storage for all essential property documents, ensuring easy access and organization of leases, applications, and other critical files.

Most of Azibo's services are free for landlords. Applicants pay $39.99 for credit and background checks.

SmartMove

SmartMove offers standalone tenant screening services in three tiered options:

• SmartCheck Basic ($25.00): Includes a residence score and criminal background check.
• SmartCheck Plus ($40.00): Adds eviction records to the Basic package.
• SmartCheck Premium ($45.00): Includes all features of the other two screenings, plus a detailed credit check.

Zillow Rental Manager

Zillow's tenant screening service includes a background check, credit report, eviction history, and income verification. Applicants pay the $35.00 screening fee.

How to screen a potential tenant

A comprehensive screening process helps property owners and managers reduce risks associated with problematic tenants, including potential property damage, missed rent payments, and costly evictions.

Consistency in your screening practices supports fairness and compliance with fair housing laws. While no screening process guarantees perfect outcomes, an organized and thoughtful approach improves your chances of finding reliable, responsible tenants.

Stay current with changes in local and federal laws regarding tenant screening, as regulations can evolve. Review and update your criteria periodically to maintain compliance.

The time and resources invested in a solid tenant screening process often lead to more stable and profitable rental experiences. By carefully vetting potential tenants, you protect your property investment and set the stage for positive landlord-tenant relationships.

How to screen renters: FAQs

How do you screen renters on VRBO?

You can screen renters on VRBO by reviewing profiles, checking reviews, and communicating with them directly. Use VRBO's secure messaging and consider third-party screening services like Safely or Autohost for background checks and identity verification.

What do most apartments check for approval?

Most apartments check your credit score, rental history, and income to verify you can pay rent on time. They may also conduct a background check for criminal history and contact your previous landlord for references.

How do you turn down a potential tenant?

To turn down a potential tenant, send a formal letter or email politely informing them that another applicant was selected. Thank them for their interest and keep the communication professional.