Best Practices for Screening Reliable Tenants

4/15/2025 (Permalink)

Happy tenants getting new keys

Best Practices for Screening Reliable Tenants

A thorough vetting process can pay off when screening potential tenants for residential rental properties. Comprehensive screening using best practices can minimize risks. It can also benefit tenants and landlords by establishing clear expectations throughout the transaction. Quality tenants reduce turnover and help landlords deliver a safe, well-maintained property and living experience.

1. Create a Comprehensive Rental Application

Start the search for reliable tenants with a detailed rental application. Get full tenant contact information, including cell phone numbers, email addresses, and emergency contacts, to assemble the applicant's background. To ensure tenants qualify for the lease, include a request for proof of income documents and recent employment history.

Add checkboxes with accompanying text asking tenants to give their consent for credit and background checks. Include space for at least two to three landlord and personal references. Add free space, and ask applicants to provide details on their most recent rental experience. Additionally, ask for commentary that could provide insight into the tenant's priorities and needs.

2. Verify Employment and Income

Assess a prospect's employment and income to confirm they can cover monthly lease payments. Don't just take their word for it. Validate with bank statements, pay stubs, or tax returns.

If feasible, contact the person's employer to verify claims about their pay. In some cases, the tenant might need more support to get clarity. For a good cross-check, compare income claims against the industry average for the person's job type.

3. Perform a Thorough Credit Check

Evaluate if the tenant can handle the lease payment and other monthly bills by checking their credit. Remember to verify the tenant has checked the “OK” box to consent to a comprehensive credit report. Check their credit scores from the three bureaus (Equifax, Experian, and TransUnion) and calculate the debt-to-income ratios.

Negative information may only show on one bureau’s report. Hence, one of the best practices for screening reliable tenants is to invest the time in reviewing all three bureau credit reports to capture the full picture. Look for patterns of rent defaults or chronic late payments. Use this information to decide on the applicant's risk level.

4. Review References and Rental History

Follow up on the landlord and reference contacts to determine the tenant’s reliability. Tenants can give false references, so invest the time to contact them. A situation may also warrant further verifying the contacts using property records and other information to ensure they are legitimate references. Ask about payment history, the number of late payments, and any evictions carried out.

Request information on the individual’s upkeep of their former unit and whether they caused any damage or left it in poor shape when they moved out. Check notes the tenant gave on their application against feedback from the references. Ask former landlords how long the tenant lived in their rental. Their responses shouldn't be much different than the tenant's application.

5. Evaluate the Background Check

When using the best practices for screening reliable tenants, it's crucial for tenant security and the property's safety to run a thorough background check. Use a service that can run comprehensive screens for criminal backgrounds. Verify that the prospective tenant has no court-related or active legal issues, like multiple or open bankruptcies.

Some situations are subjective, so consider the timeline for negative events or past offenses to decide whether they are still relevant. Consider the context of past incidents and how the tenant ultimately resolved them. Assess information from the background check with other sections of the tenant’s application.

6. Meet Prospective Tenants In Person

Set up a time to talk with tenants in person to gauge their commitment and character. Review the lease application together and ask additional questions to clarify or cross-check. Ask about the individual’s future plans to ensure they fit within the property guidelines.

Topics can include guest frequency and number of overnight guests. Don't forget about potential pets and lifestyle or work/school schedule. Ensure their activities fit within the property’s rules and noise levels. Observe the tenant’s overall demeanor and communication skills. Use this opportunity to address any application-related concerns or issues. Clear up issues that could affect their ability to keep within the terms of the rental or lease agreement.

7. Assess Tenant Compatibility

Consider how an applicant and their lifestyle fit within the property and community. Find out about the individual’s typical daily routines, habits, or hobbies. They might not give an honest answer, but it's worth asking if their behaviors have disturbed other tenants before. Offending habits include smoking on the unit's patio or loud, late-night electric guitar practice.

If the tenant has a pet, learn more about the animal's size and type. Consider having a pet interview to assess the animal's behavior and temperament to ensure it can coexist with the community. Include an addendum to the lease contract outlining pet owners' responsibilities. The individual is required to acknowledge this by signing the document.

Check social media sites to confirm consistency between the tenant’s application and their online persona. Look for any signs of risky or irresponsible behavior. However, social media activity should be a secondary source to support the other information gathered in the application and in-person interview. This process should allow for a good assessment of the tenant’s ability to respect shared spaces and achieve long-term compatibility with other residents.

8. Review the Tenant’s Property Maintenance History

Knowing how a tenant has maintained their previously rented properties is an essential best practice for screening reliable tenants to protect the value of the property investment. Ask tenants to provide evidence of how they maintained their previous unit. Confirm that the tenant can handle minor fixes and property upkeep.

The individual might talk about maintenance or repairs they performed at previous rentals. Ask for photos or a reference contact for verification. Evaluate the tenant’s ability and desire to proactively report maintenance issues. Less desirable tenants might let things go unaddressed or do a DIY fix themselves. For bigger issues like smoke damage cleanup process, professional service is warranted.

9. Assess Responsiveness and Communication

Good tenants typically communicate effectively and respond in a timely manner. During the application process, see if the tenant shares information. Try various channels such as phone or email. Consider the speed of their responses. Ask about their preferred ways of staying in touch. Assess how well the individual handles follow-up requests and in-depth questions.

10. Evaluate Long-Term Commitment Potential

In some cases, tenants may reveal clues about whether they're a possible long-term rental candidate. An easy "tell" is how long the person lived at previous rental properties. Inquire about their plans, such as whether they intend to remain in the area long-term due to a job nearby or younger children attending school. These life stages can motivate them to settle in the property longer.

Ask if the tenants have strong local ties, such as family. Compiling this information can give clues as to whether the tenant’s goals align with stability and a long-term stay. During the tenant interview, consider various lease renewal scenarios that may encourage quality tenants to stay on a long-term rental basis.

11. Review the Lease Terms Thoroughly

Start tenant relationships on the right foot by setting clear expectations from the first meeting. Work through a detailed review of the lease terms and legal responsibilities of the lease contract with the prospective lessee. Ensure the rental package includes detailed documents that outline the responsibilities of both tenant and landlord.

Best practices for screening reliable tenants include explaining essential rules and guidelines to the tenant regarding late payments, maintenance and repairs, and pet policies. Before signing, confirm that the tenant understands all the contract’s legal terms and is comfortable with each condition outlined in the document.

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