Tenant Screening Checklist: How to Choose Ideal Tenants

As a landlord, finding responsible, trustworthy tenants is key to a hassle-free rental experience. But how do you choose the right tenant for your rental property?

This article explains how a tenant screening checklist can help you find and select reliable tenants. The checklist covers credit report checks, income and employment verification, rental history, background checks, and reference reviews.

 Using a tenant screening checklist streamlines your selection process and improves your chances of finding reliable and responsible tenants for your property. Follow along for screening tips to find your ideal tenants!

What is a tenant screening checklist?

A tenant screening checklist is a helpful tool for landlords to evaluate prospective tenants before renting out a property. The checklist outlines the information and steps needed to assess if a prospective tenant is a good fit for their rental property.

Why use a checklist for a prospective tenant?

Landlords seek tenants who pay rent reliably and maintain the rental property well. While this seems straightforward, many landlords have faced challenges and horror stories due to problematic tenants.

Source: Visio Lending.

Interviewing an applicant alone isn't sufficient. Several steps are necessary to gather the details needed to decide whether to offer a lease to a prospective tenant. To avoid potential issues, invest in additional groundwork before signing a lease.

Here are the ways a checklist benefits landlords:

• Fairness: A checklist ensures that landlords treat all potential tenants equally by evaluating them based on the same criteria, helping to prevent bias or discrimination.
• Consistency: Landlords can consistently assess each potential tenant and compare their qualifications.
• Time-saving: A checklist simplifies tenant screening by providing a structured approach. Landlords can quickly gather information and documents from applicants, saving time and effort.
• Property protection: A checklist reminds landlords to verify a tenant's employment, income, rental history, and creditworthiness. This reduces the risk of renting to someone who may be unable to pay rent or may damage the property.
• Peace of mind: A detailed screening process helps landlords find reliable and responsible tenants. Knowing that their rental property is in good hands and tenants will pay rent on time gives them peace of mind.

Tenant screening checklist components

Now that we've covered the key benefits checklists offer landlords, let's look at what should actually be included in a screening checklist.

Application form

The first step in the screening process is to have the potential tenant complete an application form. This form collects their full name, contact details, employment history, and references.

Credit check

A credit check inspects the tenant's financial history and credit report. It allows you to see if the applicant pays bills on time and manages debt well.

Credit reports typically show a potential renter’s credit score, a valuable metric for assessing a potential tenant's creditworthiness. Scores under 580 are considered poor, 670–739 are good, and over 800 are excellent. A high credit score indicates a history of timely payments, while a low score suggests a history of missed obligations.

To help ensure you're accepting a tenant who will make consistent rent payments, you can set a minimum credit score you will accept.

Source: Experian.

Income verification

Verify the applicant's monthly income to ensure that they can afford the rent. Create a policy for the minimum rent-to-income ratio that you will consider for tenants. Typically, landlords require an income that's 3 times the cost of a month's rent.

Rental history

Checking the tenant's rental history provides insights into their previous behavior as tenants, including their track record of paying rent on time. Landlords may contact the previous landlord to gather information about the tenant's reliability in making rent payments, whether they complied with their prior lease, and whether they caused any issues during their tenancy.

Employment verification

 Contact the applicant's employer to verify their current employment status and ensure that the tenant has a reliable and steady source of income.

Criminal background check

Criminal background checks are vital, as they confirm the safety of other tenants and the property. Check for criminal convictions and other criminal records. However, keep in mind that just because a person has a criminal background doesn't necessarily mean they would be a threat to your property, so be judicious and fair in your evaluation on a case-by-case basis.

Landlords must comply with any state or local “fair chance” laws that exist in their area. These laws limit landlords' use of criminal records in the tenant selection process while aiming to prevent discrimination against prospective tenants with a criminal record, ensuring they have a fair chance to secure housing.

For example, New York City’s Fair Chance Housing Act prohibits landlords from asking about a potential tenant’s criminal history until a conditional offer of housing is made. This act goes into effect on January 1, 2025. 

New York City isn't alone — other cities have adopted various “fair chance” laws as well, including Berkley, Oakland, Portland, and Seattle. Additionally, New Jersey has its own “fair chance” laws on the books, while Nevada and Minnesota have pending fair chance laws.

Eviction history

Checking an applicant's history for past evictions helps landlords determine whether the applicant is guilty of non-payment of rent or violating lease terms. It also helps assess the tenant's reliability and adherence to rental agreements.

Reference checks

Talk to the tenant's personal and work references, which will provide a more comprehensive view of the tenant's personality and behavior. Landlords should ask the references if the tenant is reliable and responsible.

Remember that while all of these individual elements of a tenant screening checklist are important, they need to be evaluated in conjunction with one another to get the full picture of a tenant. Lead the screening process with context and empathy, and you'll find the best fit for your rental property.

Gather documents from applicants

Along with anecdotal evidence from the tenant's past landlords and roommates, you should gather physical documents as part of the screening process. Here are some key documents to request from the applicant:

• Proof of income: Request proof of income, such as recent pay stubs or an employment verification letter, to verify that the tenant has a stable source of income and can afford the rent.
• Photo identification: Ask for a copy of the applicant's photo identification, such as a driver's license or passport. It helps verify their identity and confirm that they are who they say they are.
• Previous rental history: By requesting the names and contact information of previous landlords, you can then reach out and ask these previous landlords for lease agreements and any eviction records to get an idea of the applicant's past behavior as a tenant.
• Consent for background check: Request written permission from the applicant to conduct a background check. With permission, you can verify their criminal and credit history, among other relevant information.

Handle all requested documents in compliance with applicable federal and state data privacy laws and regulations. Additionally, make sure to safeguard the information provided by applicants and use it solely for tenant screening.

How to use a tenant screening checklist

Once you have your tenant screening checklist in place, you're ready to start receiving applications. Here are the steps for using your checklist:

Step 1: Communicate clear criteria

Clearly explain what you're looking for in a tenant. Tell potential tenants about your requirements, such as a steady income, a good rental history, and responsible behavior.

Being upfront about your expectations allows applicants to decide if they meet your criteria before they apply.

Step 2: Application process and form submission

Provide interested potential tenants with an application form to fill out. Be sure to get vital information like their contact details, work history, and rental history.

Explain how and where they should submit the completed form, whether online, in person, or through the mail.

Step 3: Conduct thorough background checks

Once you receive the application forms, and with the applicant's permission, conduct background checks. Verify the prospective tenant's employment, contact previous landlords for references, and check their credit report history.

Step 4: Evaluate the results and make decisions

After gathering all the necessary information, evaluate the background check results. Compare the applicant's information with your rental criteria to assess whether they meet your requirements.

Look at things like income, rental history, and references. Once you have the full picture, decide whether the applicant is a good fit for your rental unit.

Step 5: Follow legal requirements and fair housing laws

Follow all legal requirements and fair housing laws when using the tenant screening checklist. Treat every applicant equally and avoid discrimination based on religion, sex, race, color, national origin, disability, or family status. Follow federal, state, and local laws and regulations to confirm compliance.

Additionally, landlords must familiarize themselves with and adhere to the Fair Credit Reporting Act (FCRA). This ensures that the tenant screening process respects tenants' rights and avoids legal pitfalls.

Compliance often requires obtaining explicit consent from applicants before conducting screenings and responsibly managing all collected information.

Other considerations for tenant screening

There are a few more things to consider beyond the basic checklist when evaluating potential tenants for your property. Here are some additional factors to keep in mind:

Face-to-face interviews

While reviewing an applicant on paper can provide valuable information, a face-to-face interview can give you a better sense of the applicant. Meeting in person allows you to assess their demeanor, communication skills, and overall character.

Assessing compatibility

Make sure that the prospective tenant will be compatible with your property's rules and regulations. Discuss the property's policies with the applicant during the screening process. Assess whether they are willing to follow the rules and maintain a respectful relationship with neighbors.

Proactive communication with tenants

A positive landlord-tenant relationship requires effective and proactive communication. Observe how responsive and communicative the applicant is during the screening process.

Look for signs that indicate they will be responsible and prompt in addressing any concerns or issues that may arise during their tenancy.

Tips for screening

The combination of a thorough checklist, face-to-face meetings, and these tips will set you up for success in the tenant screening process.

Establish tenant screening criteria

Establish clear criteria for what you're looking for in a tenant before you start the screening process. This can include a stable income, a good rental history, and responsible behavior.

Having these tenant screening criteria in place will help you evaluate applicants more effectively as they go through the rental application process.

Pre-screen tenants

Save time by pre-screening tenants before they fill out an application. Ask them basic questions about their income, rental history, and reason for moving to see if they meet your initial requirements.

It can help you filter out applicants who may not be a good fit early on.

Avoid rushing the process

Take your time when screening tenants. Rushing through the process can lead to overlooking important details that could cost you later.

Carefully review each application, conduct background checks, and contact references to confirm that you have all the necessary information to make a decision.

Leverage tenant screening technology with Azibo

In this digital age where property managers have numerous tenant screening platforms from which to choose, Azibo stands apart from the rest. With Azibo, accepting tenant applications and running background checks is seamlessly integrated into the same platform you use for rent collection and expense management. Landlords can create rental applications, choose to require background checks, and view screening results effortlessly and without extra costs.

To discover how Azibo can help you find reliable tenants, sign up for Azibo’s free landlord financial platform today.

Document everything

Keep documentation of the entire tenant screening process. This includes application forms, background check results, correspondence with applicants, and any notes from phone calls or interviews. Having proper documentation helps protect you legally and ensures transparency throughout the process.

Tools and services

You don't have to go through the tenant screening process alone. With the below tools in your toolbox, you can feel supported and confident as you pick the best tenants for your property.

• Online rental applications: Property management platforms like Azibo allow tenants to fill out their information digitally instead of dealing with paper applications.
• Online background check providers: These platforms let you run background checks on prospective tenants. They search public records and databases for criminal records, evictions, and other relevant information.
• Rental history databases: Some websites compile information about tenants' rental history and behavior. These databases give insights into an applicant's past rental experiences and any issues they may have had with previous landlords.

Remember to comply with fair housing laws and respect applicants' privacy throughout the process.

Feeling confident with your tenant selection

A tenant screening checklist is an invaluable tool for landlords and property managers, ensuring the selection of responsible and reliable tenants. By thoroughly screening applicants using this checklist, you can secure a successful and stress-free rental experience. Gain peace of mind and protect your investment with a meticulous tenant selection process.

For a seamless and efficient tenant screening experience, sign up for Azibo for free today. Azibo offers integrated tools for tenant applications, background checks, and rent collection to help you manage your rental property with ease.

Tenant screening checklist FAQs

How long should the tenant screening process take?

The duration of the tenant screening process depends on factors such as the number of applicants, response times for reference checks, and the availability of necessary documentation. Landlords should maintain a reasonable timeframe while conducting a thorough evaluation so as to respect the applicant's time.

What should I do if a tenant fails the screening process?

If you deny an applicant, let them know kindly and explain why. Make sure to follow any local laws surrounding the rejection of applicants as well.

What happens if I skip the tenant screening process?

Skipping tenant screening can create problems and increase the likelihood of negative experiences as a landlord. Invest the time to screen potential tenants properly to protect your investment for the best rental experience.