How to Conduct Tenant Screening When Renting Out Your Home

Tenant screening is one of the most important things Landlords and property managers do. It’s key to avoiding bad rental outcomes and Landlord headaches. 

That said, too many DIY Landlords skip this step or don’t screen thoroughly because they think the process is overwhelming, time-consuming, or expensive. 

The reality is that Lease applicant vetting doesn’t have to be any of those things. Using the right systems and tools ensures that your tenant selection process is effective, efficient, and affordable. 

Here’s a guide to help you with the process. When you’re ready to send a screening request, visit ezLandlordForms to take advantage of our complete tenant screening services.

What Is Tenant Screening? 

Tenant screening is the process Landlords or property managers use to evaluate applicants when filling a rental vacancy. The screening process allows Landlords to get background information about an applicant and make informed rental decisions. 

When you hand over the keys to a rental property, you give a Tenant legal possession of the unit. Signing a Lease Agreement and handing over legal possession are major steps. There’s so much you don’t know about an applicant after a tour or initial interview. 

The screening process is the way Landlords gather key information about an applicant to ensure each applicant is qualified, able to pay rent, and has a positive rental history. 

Some information commonly included in the renter screening process is: 

• Rental application
• Credit report
• Criminal history background report
• Credit score or resident score
• Eviction history report 
• Employment and income verification 

Why Checking Out Potential Tenants Is Essential for Landlords & Property Owners

The tenant selection process is one of the most effective ways for Landlords to avoid bad rental outcomes like unpaid rent, property damage, and evictions. The best way to predict future behavior is to look at past behavior. 

This means that if an applicant has a history of evictions, breaking a Lease, causing nuisances, or paying rent late, you want to know about it before entering into a rental contract. 

Thorough rental applicant screening gives you insights into each applicant’s: 

• Financial history
• Employment history 
• Past eviction record 
• Criminal history 

This helps avoid: 

• Unpaid rent or missed rent payments
• Costly property damage
• Landlord headaches from tracking down rent or dealing with difficult Tenants
• Costly and stressful eviction procedures

Step-by-Step Tenant Screening Process

Landlords should have clear and objective screening procedures that they apply to every applicant. This ensures the process is fair, legally compliant, and effective. It also takes the guesswork out of finding good Tenants. 

Here’s a step-by-step guide with Landlord tips to help you find qualified Tenants for every rental vacancy: 

1. Meet the Tenant in person at the rental property. 

This is your chance to meet applicants and conduct an informal interview. It’s also a chance for potential Tenants to see the unit and ask questions. It’s an opportunity for both parties to learn about each other, and can save time if the unit isn’t right for the Tenant – for example, if the Tenant has a dog and you don’t allow pets, or if the Tenant needs a 6-month Lease and your minimum Lease term is 12 months. 

2. Collect a Rental Application. 

If applicants are still interested after the initial meeting, have them complete a Lease application. This provides key background information, including: 

• The applicant’s full name
• Contact information
• Employment history
• Rental history
• References
• Proof of income

A good Tenant Rental Application includes authorizations to run the necessary background reports. This makes the process more efficient for Landlords and Tenants. 

3. Run a complete renter background check report. The full screening report gathers all the information you need to review about each applicant, including: 

• Credit report
• ResidentScore
• Criminal history background report
• Eviction history report 

The screening report provides a complete financial history of an applicant and highlights any red flags. It also allows you to confirm the accuracy of the information the applicant included in the Tenant application. . 

4. Check References & Verify Income. 

You want to talk with at least two prior Landlords to ask questions about an applicant. Be specific in the questions you ask, including whether the Tenant:

• Ever was late paying rent 
• Left before the Lease term ended 
• Caused property damage 

You also want to talk with the applicant’s employer to verify an applicant’s employment and verify income.

5. Choose the Most Qualified Applicant. 

To ensure the process is fair and transparent, it’s best to have specific and objective criteria for what makes an applicant qualified. For example, a minimum credit score, no negative reviews, and no evictions within the last five years. This makes it easy to determine which applicants meet your criteria and which do not. 

If multiple applicants meet your minimum criteria, it’s a good practice to select the qualified applicant who submitted all of the information first. 

Top Red Flags to Watch Out for During the Screening Process

Thorough screening helps avoid unqualified applicants and bad rental outcomes. As you become more experienced with the process, you can learn to identify red flags to more effectively determine which applicants will be the best fit. 

Red flags don’t necessarily mean that you should deny an applicant; they are simply areas where you need to gather additional information or proceed with caution. 

Some red flags to watch out for are: 

• Applicants who want to move in right away 
• Applicants who ask for a rent reduction before entering into a Lease Agreement 
• Inaccurate or incomplete information on the rental application 
• Negative rental history, including complaints from Landlords or recent evictions 

What Legal Restrictions Apply to Tenant Screening? 

Landlords must have a fair screening process that they follow with all applicants. This is one of the best ways to ensure your screening process is legally compliant, but it’s also important to be familiar with local, state, and federal fair housing laws. 

The Fair Housing Act prohibits Landlords from making rental decisions based on race, color, national origin, religion, sex, familial status, or disability. Landlords should not ask screening questions about these protected classes or refuse to rent based on them. 

The Fair Credit Reporting Act requires Landlords to get written permission before running a credit or background check. In addition, it requires Landlords to provide applicants with an adverse action notice if they deny an applicant based on a report. 

Beyond these important federal statutes, some states and municipalities have additional restrictions on how Landlords can select and deny applicants. 

Working with a reputable screening service makes it easier to comply with key legislation, but it’s always important to familiarize yourself with local requirements to ensure your process is legal.

Send a Screening Request With Just an Applicant’s Name & Email Address 

When you’re ready to fill a vacancy, ezLandlordForms can make the screening process seamless for you and your applicants. All you need is an applicant’s name and email address to send a screening request. 

Your applicant will be prompted to complete the online application and provide the authorizations you need for a complete screening report. Once your report is ready, you’ll get a notification and can review the information in your color-coded, user-friendly dashboard. 

Plus, when you send a screening request, you can opt to have the applicant pay. This is easier than charging an application fee and means you get all the information you need for free. 

View sample renter screening reports or send a screening request now to ensure you only hand over the keys to a qualified applicant.

Emily Koelsch, ezLandlordForms Contributing Writer

Emily Koelsch is a freelance writer and blogger, who primarily writes about business, real estate, and technology.