Finding reliable tenants is one of the biggest challenges landlords face. Late payments, property damage, and costly evictions can turn a rental property into a financial headache. A thorough tenant screening process minimizes these risks by helping you choose responsible renters who pay on time and take care of your property. If you’re unsure how to screen a tenant effectively, this guide from our experts at Portage Metropolitan Housing Authority will walk you through the key steps to protect your investment and simplify the process.
Tenant screening is a systematic process used by landlords and property managers to assess the eligibility of potential renters. This evaluation typically involves reviewing an applicant’s rental history, creditworthiness, employment status, and criminal background. The primary goal is to determine if the applicant will be a reliable tenant, helping to safeguard the landlord’s investment and ensure a harmonious landlord-tenant relationship. When screening Section 8 voucher holders for a tenancy, you should conduct a thorough tenant screening process while ensuring you do not discriminate based on their voucher status and treat all applicants equally.
Steps for Screening Potential Tenants
New landlords might be unfamiliar with the process, but following these steps will help ensure a thorough and effective tenant screening:
Set Application Requirements
Before initiating the tenant screening process, it’s essential to establish clear application requirements. Defining criteria – such as minimum income levels, acceptable credit scores, and rental history standards – is a best practice for attracting qualified applicants and transparently setting expectations from the start.
Request a Completed Application
Provide prospective tenants with a clear and comprehensive rental application form. This form should collect all important information, including personal details, employment history, rental background check data, and references. A thoroughly completed application serves as the foundation for these tenant screening steps:
Verify Applicant Background Information
Conducting a detailed rental background check is crucial to confirm the accuracy of the information provided and to assess if the applicant is a suitable choice for your property.
Background Check
A comprehensive background check for rentals helps landlords verify an applicant’s rental history, past evictions, and overall reliability. It also provides insight into a tenant’s track record of timely payments, property upkeep, and positive relationships with previous landlords, helping you identify responsible tenants who are more likely to be a good fit for your rental.
Criminal Background Check
As part of a thorough tenant screening process, conducting a rental background check that includes a criminal background check helps landlords assess potential risks. While a past offense doesn’t automatically disqualify an applicant, reviewing the nature and recency of any convictions – especially if relayed to property damage, fraud, or violent behavior – can help you make an informed decision.
Credit Check
A detailed rental background check often also includes a credit check to evaluate an applicant’s financial responsibility. A strong credit history suggests reliability in meeting financial obligations. Some landlords may be more flexible with credit requirements, especially if the tenant has a strong rental history and stable income.
Income Verification
Including income verification as part of the rental background check helps minimize the risk of late or missed payments, whether the tenant is receiving Section 8 assistance or not. Request recent pay stubs, tax returns, employment letters, or housing assistance documentation to substantiate income claims.
Contact References and Current Employer
One of the best landlord tips for assessing a tenant’s reliability is to contact references, including the applicant’s previous landlords and current employer. Inquire about the applicant’s rental history, behavior, and employment stability. This offers valuable insights into whether or not they are the right fit for your property.
Interview Applicant
A face-to-face or virtual interview is a great chance to get a feel for the applicant’s personality and clear up any questions you might have from their application. This personal interaction helps landlords further assess their suitability as a tenant.
Other Screening Tips for Landlords
In addition to establishing applicant requirements and performing rental background checks, there are a few other tips landlords can follow to streamline the process, protect their property, and stay in compliance with housing laws.
Develop a Standardized Screening Process
One of the most effective landlord tips is to implement a consistent screening process for all applicants. A standardized approach ensures fairness and objectivity, reducing the risk of bias or discrimination claims. This consistency also helps to streamline the decision-making process.
Document Your Screening Process
Keep detailed records of the screening process for each applicant, including application forms, background checks for rentals, any correspondence, and notes from interviews. Having these records on hand not only helps with future decisions but also provides protection in case of any disputes or legal issues down the line.
Comply with Fair Housing Laws
It’s important to follow all of the fair housing laws at the federal, state, and local levels during the tenant screening process. These laws prohibit discrimination based on race, color, religion, sex, national origin, familial status, or disability. Ensuring compliance not only upholds ethical standards but also protects landlords from legal repercussions.
Become a Landlord for PMHA
Portage Metropolitan Housing Authority (PMHA) offers valuable opportunities for landlords interested in participating in the Housing Chouse Vouchers (HCV) program, commonly known as Portage County Section 8 housing. If you’re looking for a way to fill vacancies and receive landlord incentives while providing low-income rentals to qualified tenants, PMHA can be a great resource. Refer to our landlord information packet for more information about benefits and responsibilities.
Contact PMHA today if you are interested in becoming an HCV landlord and would like to know more about getting started!