Create a Criteria Checklist

Set tenant interview guidelines for yourself. It’s tempting to fill your vacant rental as soon as possible, but entering into a lease agreement with an under qualified tenant is dangerous for your bottom line. Instead, create a criteria checklist and use it to evaluate every application you are considering accepting. Even if you know the tenant personally, follow through with the screening process. It is better to be overly cautious in your acceptance policy. It lessens the chance of damage to your property or unpaid rent.

We suggest including the following in your criteria checklist for tenant applications.

1. The tenant’s income is at least 3.5x the rent amount. You want to make sure tenants can afford rent. Approving tenants that make less than 3.5x the property’s monthly cost will likely result in late payments. 
2. Run a credit check. Credit reports reveal more than just a credit score. Requesting a credit check on potential tenants will show if the applicant has defaulted on a mortgage or was previously evicted.
3. Employment verification. Just because applicants say they have a job doesn’t make it accurate. Following the COVID-19 pandemic, landlords are experiencing more instances of false employment claims by tenants. Requesting a current pay stub and calling the HR department of a tenant’s workplace takes minimal effort.
4. References. Ask tenants for their previous landlords’ names, phone numbers, and addresses. Watch out for contacts that share the same last name as the applicant. References from family members are notoriously unreliable.
5. Social Media. It doesn’t hurt to type an applicant’s name into social media platforms like Facebook, Instagram, Twitter, or TikTok. Look out for frequent posts that involve partying, excessive drinking, drug use, or show the tenant engaging in irresponsible behavior. 

Everyone has fun every once in a while. But odds are, if your potential tenant posts about a huge party every week, they will end up hosting one in your rental property. That behavior increases the odds of damage and heightens your risk of liability from injuries on your property.

1. Background check. Performing a tenant background check will show you if your applicant has a criminal history. Aside from checking for felonies, watch out for theft, drugs, and vandalism charges. 
2. Meet in-person. Always request a face-to-face meeting with your potential tenant. In-person conversation allows you to evaluate factors not communicated on a written tenant screening report, like timeliness and personal hygiene.

Avoid Tenants with These Red Flags

If something doesn’t feel right, it isn’t. A tenant might meet every qualification on your criteria checklist and still be the wrong candidate. Watch out for these behavioral red flags that suggest you may have problems with this tenant in the future.

Paying Cash and Under a Time Crunch

Accepting cash deposits can be tempting. Cash is quick and guaranteed. However, when you combine the desire to pay some larger portion of yearly rent upfront in cash with a tenant is overly eager to move in you need to exercise caution. If a tenant requests to forgo the renter screening process, you should pause and ask further questions as to what is really pushing their timeline and if there is more they want to share about their current situation. Rushing the process could signify that they are running from a problem or potentially facing eviction. 

Misses Appointments

A good tenant will respect you and your property. Missing an appointment to view the rental or finalize paperwork is a sign that person is irresponsible and unreliable. 

Showboating

Tenants with a less-than-great rental history will try to convince you of their qualifications by exaggerating good behaviors or responding with overt enthusiasm. If a rental applicant aggressively explains how they are responsible or a great tenant, investigate their application further. Most likely, they have omitted information or lied on their tenant screening form. You should be able to gauge a potential client’s qualifications from their credit score, background check, and references. If an additional explanation is required on behalf of the tenant, avoid signing a lease with them.

Use a Third Party Screening Service

Complete credit reports and background checks are more accessible through a third-party service. Two of the best tenant screening services are SmartMove and MyRental.

SmartMove

SmartMove provides a tenant screening service that issues landlords credit reports, eviction reports, background checks, and income insights on potential tenants. The premium service costs $42 per tenant screening. While this may seem expensive, paying a small fee upfront can save you thousands in lost rent and property damages by signing a lease with a bad tenant. SmartMove also allows landlords to invoice tenant applications for the service fee.

MyRental

MyRental is another website that provides tenant background screening. The top package offered by MyRental gives landlords credit reports, criminal history, a SafeRent score, eviction history, and more on each tenant screened. This tenant screening report costs $35.