Tenant Screening Checklist: Find Your Ideal Renters

As a landlord, your rental success depends on finding responsible, trustworthy tenants. But with numerous applicants competing for your property, how do you choose the right one?

A well-crafted tenant screening checklist, often referred to as a rental criteria checklist, can be your most valuable tool in this process. It guides you through essential steps like reviewing credit reports, verifying income and employment, examining rental history, conducting background checks, and contacting references.

By using a comprehensive screening approach, you’ll streamline your selection process and increase your chances of finding reliable tenants who will care for your property. This article offers practical tips to help you create and implement an effective screening strategy, ensuring a smoother, more profitable rental experience.

What is a tenant screening checklist?

A tenant screening checklist serves as a landlord’s guide for evaluating potential renters. This practical tool outlines key steps to assess whether a prospective tenant is likely to be a good fit for your rental property.

The checklist typically includes important aspects to review, such as credit history, employment verification, rental background, and personal references. Additionally, it is crucial to contact prior landlords to gain deeper insights into the prospective tenant's character and reliability.

Why use a tenant screening checklist for a prospective tenant?

Using a checklist helps you make more informed decisions based on facts rather than just first impressions. As a landlord, your goal is to find tenants who pay rent reliably and maintain the rental property well. While this seems straightforward, many landlords have faced challenges due to problematic tenants.

For instance, Visio Lending, a company specializing in rental property loans, reports numerous cases where landlords encountered significant issues with tenants they hadn't thoroughly screened. These experiences underscore the importance of a comprehensive screening process.

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Interviewing an applicant alone isn't sufficient. Several steps are necessary to gather the details needed to decide whether to offer a lease to a prospective tenant. To avoid potential issues, invest in additional groundwork before signing a lease.

Here are the ways a checklist benefits landlords:

• Fairness: A checklist ensures that landlords treat all potential tenants equally by evaluating them based on the same criteria, helping to prevent bias or discrimination.
• Consistency: Landlords can consistently assess each potential tenant and compare their qualifications.
• Time-saving: A checklist simplifies tenant screening by providing a structured approach. Landlords can quickly gather information and documents from applicants, saving time and effort.
• Property protection: A checklist reminds landlords to verify a tenant's employment, income, rental history, and creditworthiness. This reduces the risk of renting to someone who may be unable to pay rent or may damage the property.
• Peace of mind: A detailed screening process helps landlords find reliable and responsible tenants. Knowing that their rental property is in good hands and tenants will pay rent on time gives them peace of mind.

Tenant screening checklist components

Now that we've covered the key benefits checklists offer landlords, let's look at what should actually be included in a screening checklist.

Application form

The first step in the screening process is to have the potential tenant complete an application form. This form collects their full name, contact details, employment history, and references.

Tip: Save time by pre-screening tenants before they fill out an application. Ask them basic questions about their income, rental history, and reason for moving to see if they meet your initial requirements. It can help you filter out applicants who may not be a good fit early on.

Credit check

A credit check inspects the tenant's financial history and credit report. It allows you to see if the applicant pays bills on time and manages debt well.

Credit reports typically show a potential renter’s credit score, a valuable metric for assessing a potential tenant's creditworthiness. Scores under 580 are considered poor, 670–739 are good, and over 800 are excellent. A high credit score indicates a history of timely payments, while a low score suggests a history of missed obligations.

To help ensure you're accepting a tenant who will make consistent rent payments, you can set a minimum credit score you will accept.

Income verification

Verify the applicant's monthly income to ensure that they can afford the rent. Create a policy for the minimum rent-to-income ratio that you will consider for tenants. Typically, landlords require an income that's 3 times the cost of a month's rent.

Rental history

Checking the tenant’s rental history provides insights into their previous behavior as tenants, including their track record of paying rent on time. Landlords may contact prior landlords to gather information about the tenant’s reliability in making rent payments, whether they complied with their prior lease, and whether they caused any issues during their tenancy.

Employment verification

Contact the applicant's employer to verify their current employment status and ensure that the tenant has a reliable and steady source of income.

Criminal background check

Criminal background checks are vital, as they confirm the safety of other tenants and the property. Check for criminal convictions and other criminal records. However, keep in mind that just because a person has a criminal background doesn't necessarily mean they would be a threat to your property, so be judicious and fair in your evaluation on a case-by-case basis.

Landlords must comply with any state or local “fair chance” laws that exist in their area. These laws limit landlords' use of criminal records in the tenant selection process while aiming to prevent discrimination against prospective tenants with a criminal record, ensuring they have a fair chance to secure housing.

For example, New York City’s Fair Chance Housing Act prohibits landlords from asking about a potential tenant’s criminal history until a conditional offer of housing is made. This act goes into effect on January 1, 2025. 

New York City isn't alone — other cities have adopted various “fair chance” laws as well, including Berkley, Oakland, Portland, and Seattle. Additionally, New Jersey has its own “fair chance” laws on the books, while Nevada and Minnesota have pending fair chance laws.

Eviction history

Checking an applicant's history for past evictions helps landlords determine whether the applicant is guilty of non-payment of rent or violating lease terms. It also helps assess the tenant's reliability and adherence to rental agreements.

Reference checks

Talk to the tenant's personal and work references, which will provide a more comprehensive view of the tenant's personality and behavior. Landlords should ask the references if the tenant is reliable and responsible.

Remember that while all of these individual elements of a tenant screening checklist are important, they need to be evaluated in conjunction with one another to get the full picture of a tenant. Lead the screening process with context and empathy, and you'll find the best fit for your rental property.

Collecting necessary paperwork from prospective tenants

Along with anecdotal evidence from the tenant's past landlords and roommates, you should gather physical documents as part of the screening process. Here are some key documents to request from the applicant:

• Proof of income: Request proof of income, such as recent pay stubs or an employment verification letter, to verify that the tenant has a stable source of income and can afford the rent.
• Photo identification: Ask for a copy of the applicant's photo identification, such as a driver's license or passport. It helps verify their identity and confirm that they are who they say they are.
• Previous rental history: By requesting the names and contact information of previous landlords, you can then reach out and ask these previous landlords for lease agreements and any eviction records to get an idea of the applicant's past behavior as a tenant.
• Consent for background check: Request written permission from the applicant to conduct a background check. With permission, you can verify their criminal and credit history, among other relevant information.

Remember, handle all requested documents in compliance with applicable federal and state data privacy laws and regulations. Additionally, make sure to safeguard the information provided by applicants and use it solely for tenant screening.

How to use a tenant screening checklist

Once you have your tenant screening checklist in place, you're ready to start receiving applications. Here are the steps for using your checklist:

Step 1: Communicate clear criteria

Clearly explain what you’re looking for in a tenant by using a rental criteria checklist. Tell potential tenants about your requirements, such as a steady income, a good rental history, and responsible behavior. Being upfront about your expectations allows applicants to decide if they meet your criteria before they apply.

Establishing and communicating clear criteria ensures that you treat all applicants fairly and consistently, which is crucial for complying with fair housing laws. By setting objective standards and applying them uniformly to all potential tenants, you reduce the risk of discrimination claims and demonstrate your commitment to equal opportunity housing.

Remember to keep your criteria focused on factors that directly relate to an applicant’s ability to be a good tenant, such as financial stability and rental history. Avoid criteria that could be seen as discriminatory based on protected characteristics like race, religion, or family status.

Step 2: Application process and form submission

Provide interested potential tenants with an application form to fill out. Be sure to get vital information like their contact details, work history, and rental history.

Explain how and where they should submit the completed form, whether online, in person, or through the mail.

Tip: Did you know that Azibo allows you to collect rental applications on our platform for free?

Step 3: Conduct thorough background checks

Once you receive the application forms, and with the applicant's permission, conduct background checks. Verify the prospective tenant's employment, contact previous landlords for references, and check their credit report history.

Step 4: Evaluate the results and make decisions

After gathering all the necessary information, evaluate the background check results. Compare the applicant's information with your rental criteria to assess whether they meet your requirements.

Look at things like income, rental history, and references. Once you have the full picture, decide whether the applicant is a good fit for your rental unit.

Step 5: Follow legal requirements and fair housing laws

As mentioned earlier, you must always follow all legal requirements and fair housing laws when collecting applications and screening potential renters. Treat every applicant equally and avoid discrimination based on religion, sex, race, color, national origin, disability, or family status. Follow federal, state, and local laws and regulations to confirm compliance.

Additionally, landlords must familiarize themselves with and adhere to the Fair Credit Reporting Act (FCRA). This ensures that the tenant screening process respects tenants' rights and avoids legal pitfalls.

Compliance often requires obtaining explicit consent from applicants before conducting screenings and responsibly managing all collected information.

Step 6: Avoid rushing the process

Take your time when screening tenants. Rushing through the process can lead to overlooking important details that could cost you later.

Carefully review each application, conduct background checks, and contact references to confirm that you have all the necessary information to make a decision.

Document everything during the screening process

Documenting everything during the screening process is essential to ensure a smooth and transparent process. Here are some essential documents to keep:

1. Rental application: Keep a copy of the rental application, including all supporting documents, such as identification and proof of income. This provides a comprehensive view of the prospective tenant’s background and qualifications.
2. Credit and background check Reports: Store copies of credit and background check reports, as well as any other relevant documents. These reports are essential for assessing the financial stability and reliability of the tenant.
3. Lease agreement: Keep a signed copy of the lease agreement, including all terms and conditions. This serves as a legal document outlining the responsibilities and expectations of both parties.
4. Communication records: Document all communication with prospective tenants, including emails, phone calls, and text messages. This helps in maintaining a clear record of all interactions and can be useful in case of any disputes.
5. Tenant screening criteria: Keep a record of the tenant screening criteria used to evaluate prospective tenants. This ensures that all applicants are assessed based on the same standards, promoting fairness and compliance with fair housing laws.

By documenting everything during the screening process, landlords can:

1. Ensure compliance: Ensure compliance with fair housing laws and regulations, reducing the risk of legal issues.
2. Reduce disputes: Reduce the risk of disputes with tenants by having a clear paper trail of all interactions and decisions.
3. Improve efficiency: Improve the efficiency of the screening process by having all necessary documents in one place, making it easier to review and compare applications.
4. Make informed decisions: Make informed decisions when selecting tenants by having access to all relevant information, ensuring that you choose the right tenant for your rental property.

By maintaining thorough documentation, landlords can protect their interests and ensure a fair and transparent tenant screening process.

Streamline your screening with Azibo

In today's digital age, many landlords are turning to online platforms to simplify their tenant screening process. Azibo offers a comprehensive screening service designed specifically for property owners and managers, with recent updates enhancing its capabilities.

Azibo's platform, powered by TransUnion, provides a range of reports to help you make informed decisions about potential tenants. These include:

1. Full credit reports
2. Criminal background checks, including:
   • National Sex Offender Registry
   • National Crime database
   • Federal sanctions lists (including OFAC)
   • State and local criminal records (soon covering 85% of the US population)
3. Nationwide eviction history

Recent updates to the service include:

• Expanded coverage of state and local criminal searches
• Varied processing times, with 90% of reports completed in under an hour
• Compliance with local laws regarding criminal history consideration

One of the key advantages of Azibo's service is its flexible cost structure. While the standard fee for applicants is $39.99, Azibo allows property owners and managers to cover some or all of the screening costs if they choose. This feature is particularly useful for complying with state laws, such as those in New York, which limit applicant fees.

The screening process with Azibo is straightforward:

1. Invite applicants via SMS, email, or through your rental listing
2. Applicants complete the screening online
3. You receive the results instantly (most within 5 minutes, some may take longer depending on the counties checked)

Azibo's service also includes features like timestamp records, lease agreement drafting tools, and the ability to generate adverse action notices for declined applicants.

Ready to simplify your tenant screening process? Screen your renter today

Remember, while using digital tools can streamline your process, it's important to ensure you're complying with fair housing laws and local regulations in your screening practices. Azibo's updated service helps with this by automatically omitting criminal history information in jurisdictions where considering it is illegal.

Confidently selecting the right renters with a tenant screening checklist

A well-executed tenant screening process is the foundation of a successful rental business. By implementing a comprehensive tenant screening checklist, you're not just finding renters—you're selecting reliable partners for your property investment.

While the screening process may seem daunting, it's an invaluable investment in your property's future. A thorough screening today can prevent headaches tomorrow, leading to stable, long-term tenancies and a more profitable rental business.

By following the guidelines outlined in this article and utilizing the right tools, you're well on your way to finding ideal tenants who will treat your property with respect and contribute to its value. Remember, the time and effort you invest in screening will pay dividends in the form of reliable tenants, reduced turnover, and a smoother rental experience overall.

Happy screening, and here's to your continued success as a landlord!