Renter Screening – Setting Minimum Requirements
Find Better Tenants by Defining Clear Screening Standards
Aug 20, 2009
When screening renters, any good landlord wants to know if a potential tenant will pay the rent, take good care of the unit, and be an agreeable neighbor for other people who live nearby. Having a written set of minimum rental requirements helps landlords systematically identify the applicants who are likely to be good tenants and weed out the ones who aren’t.
Setting Screening Requirements Helps Landlords Treat Applicants Fairly
Written requirements help ensure that every potential renter is treated the same way. This is not only good business; it’s also required by fair housing laws in many places. If a property manager or real estate agent will show the property, a written list of standards also provides a clear-cut guide for the person who actually meets and screens the applicants.
Most Important Tenant Screening Criteria
The most vital screening requirements for any unit have to do with an applicant’s income, personal background, credit record, and past rental history. How stringent the minimum standards can be for a particular property depend on its location, amenities, and how much competition there is for units in the area. The landlord lucky enough to own a very desirable unit in a city with a hot employment market can set higher standards for renters than a landlord with older units in an economically depressed area.
Here are some of the key areas to define minimum requirements for any property:
- Credit history. A credit check should be required for every adult applicant. Some landlords require tenants to meet a minimum overall credit score. Others require no prior bankruptcies, no delinquent payments on rent or utilities, or no payments more than a certain number of days delinquent.
- Criminal record. A criminal background check for each adult applicant is also a good idea. Many landlords require a completely clean record with no criminal activity. Others will accept tenants who have committed misdemeanors but not felonies, or who have a clean record for the last five or ten years. Most landlords put applicants with records of violence, destruction of property, or fraud on the “reject” pile.
- Income. A tenant needs to have enough income (or money in the bank) to pay the rent. Many landlords require the tenant to have an income at least three times the amount of the monthly rent. Local laws govern what kind of income requirements landlords are allowed to make. In some places, it is illegal to reject applicants because their income comes from disability payments or other protected sources. If the tenant doesn’t make enough money to qualify, landlords can require the tenant to provide a cosigner whose income does meet the minimum standard and who is willing to assume responsibility for paying the rent if the tenant can’t pay.
- Employment. A stable job increases the likelihood that the tenant can continue paying rent in the future. A landlord can require that the tenant have been at the current job for a minimum period.
- Number of occupants. Landlords can set a maximum occupancy standard and reject applicants who would overcrowd the rental.
- Rental history and landlord references. Applicants should provide references from at least the last two landlords. Landlords can require positive references.
- Pets. Landlords can refuse to accept pets, or can set limits on the number and type of pets they will accept. It’s important to make sure pet requirements don’t run afoul of laws protecting service animals.
- Smoking. Landlords can reject smokers, or require limits on smoking in the unit or around the property as a whole.
- Behavior. Some landlords set a minimum behavior standard for applicants during screening calls or visits to the unit, and will reject applicants who act in a threatening or intimidating way, or whose children damage the unit during showings.
Rules for Writing Good Minimum Requirements
Make sure tenant requirements don’t violate any local, state, or national laws. The landlord website mrlandlord.com has links to the landlord-tenant statutes in all 50 states in the United States.
Apply the same requirements to every potential tenant who calls, visits, or applies for the rental unit.
Effective Renter Screening is a Landlord’s Best Protection
When it’s done well, tenant screening helps head off some of landlording’s most frustrating problems: evictions, repairing damaged units, and answering complaints from tenants and neighbors. Armed with a well thought-out list of minimum rental requirements, a landlord is well equipped to find the best possible tenants for any rental house or apartment.
Learn more about effective tenant screening:
How to screen rental applicants over the phone
How to screen potential renters with pets
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