Finding the right tenants for your rental property is critical to a good leasing experience for both the renter and the property management company or landlord. Effective tenant screening is the key ingredient in creating a positive, long-lasting experience, which is the ultimate goal for property managers. Maintaining a loyal renter is easier and less costly than finding a new tenant every few months. So, let’s get it right the first time by following a few yes practices that make this experience positive. 
What Is Tenant Screening?
Tenant screening is the process of assessing the eligibility of potential renters to gauge whether they are a good fit for your property. The process usually includes a series of checks, including a credit report, criminal history, employment verification, and rental history, to determine whether the renter is employed, financially responsible, and has a history of making on-time payments.
Why is Tenant Screening Advised?
While tenant screenings may feel intrusive, they are highly recommended for landlords. This process is essential for securing reliable renters who consistently pay on time, maintain the property, and respect community standards. A comprehensive screening, including checks on credit, rental history, income, and criminal backgrounds, can help prevent financial losses from unpaid rent, damage, and costly evictions. Ultimately, it allows landlords to make informed decisions, significantly reducing risk and fostering a stable, positive, and safer community for all tenants.
Tenant Screening Checklist
Having a screening checklist can ensure an organized process that protects the property management company and community, while also maintaining Fair Housing compliance required by each state. Here is a quick checklist of items to review before entering into a lease agreement with a candidate.
A tenant screening report should include:
- Personal identification information, including full name, date of birth and contact information such as a phone number and email address.
- A credit report, which can give insights into payment history, bankruptcies or other financial judgments.
- Verification of employment that may include a reference check from past employers, indicating job stability.
- Rental history indicating payment history and any past unpaid bills.
- Criminal background check indicating previous criminal record, such as felony and misdemeanor convictions, pending criminal cases, and sex offender registry status.
When gathering these reports, landlords and property managers must strictly comply with all federal, state, and local regulations regarding the collection and use of tenant information. This includes adherence to key legislation, such as the Fair Credit Reporting Act (FCRA) and the Fair Housing Act. Discrimination is prohibited based on race, color, national origin, religion, sex, familial status, or disability. Be aware that additional protected classes may apply depending on state law.
Once applicant information has been gathered, property managers should review all information objectively, not emotionally, and make decisions based on their established, non-discriminatory criteria. For more information on best practices for tenant screening, contact us at Thayer & Associates.