Bad tenants are expensive. Between missed rent, damaged property, drawn-out evictions, and the time you spend dealing with it all, one mistake in screening can set you back thousands. So it stands to reason that screening is your first line of defense as a landlord.
The issue is that not all tenant screening methods are created equal. A credit score alone doesn’t tell the whole story, for example. And a good first impression doesn’t always mean they’ll be a responsible tenant. If you want consistent cash flow and fewer headaches, you need to approach screening with more accuracy and intention.
Fortunately, you don’t need a detective’s license or a background in forensics to get it right. You just need a smarter process – and maybe the right partner to help execute it.
Here are some tips.
1. Go Beyond Credit Scores
Credit scores are useful, but they’re not the whole picture. A 620 might scare you off, but that same tenant could have a perfect rental history and stable income. On the flip side, someone with a 750 might have no experience renting, a habit of job-hopping, or be great at paying credit cards, but not rent.
Instead of treating the credit score like a yes/no gatekeeper, use it as one piece of the puzzle. Dig deeper. Look at payment patterns. Are they consistently late? Are they overleveraged? Is there a recent drop in their score?
Combine this with other factors – like rental history, income, and employment stability – to get a more accurate read. The goal is a complete picture, not a single number.
2. Verify Income and Employment
A pay stub is a start, but it’s not enough. You need to be sure your tenant has reliable, ongoing income (and that it’s coming from a legitimate source).
Ask for at least two recent pay stubs and one bank statement that shows deposits. If they’re self-employed, request tax returns, 1099s, or business account statements. And if anything feels off – like inconsistent income or handwritten documents – don’t be afraid to ask questions.
Also, don’t skip calling the employer. A quick verification of job title, length of employment, and income level can save you from a costly assumption. Tenants may not always lie, but they’ll often stretch the truth. Your job is to confirm the facts.
3. Always Call the Previous Landlords (Not Just the Current One)
If you want the real story on a tenant’s rental history, talk to former landlords – not just their current one.
Why? Because the current landlord might be desperate to get rid of them. They’ll say anything to move the process along. But a previous landlord has no skin in the game, and they’re more likely to give an honest assessment.
Ask clear questions:
– Did they pay rent on time?
– Did they follow the lease?
– Were there complaints from neighbors?
– Did they leave the unit in good condition?
– Would you rent to them again?
Listen carefully to their words and their tone. A long pause or vague answer can tell you just as much as a glowing review.
4. Run a Legitimate Background Check
Don’t rely on a Google search or a gut feeling. Run a full background check through a reputable screening service. This should include:
– National and county-level criminal records
– Eviction history
– Sex offender registry checks
Be sure to comply with the Fair Housing Act and any local laws when reviewing background info. You’re not looking to punish someone for a mistake from years ago – but you do have a right to protect your property and your other tenants from risk.
If you do see a red flag, ask the applicant for context. Sometimes there’s more to the story. Other times, their response (or lack thereof) is all the confirmation you need.
5. Create a Consistent Screening Criteria
One of the biggest mistakes landlords make is winging it. They go with their gut or let emotions get in the way. That’s a fast track to trouble and potential legal issues.
Instead, create a written screening criterion that you apply to every applicant. It should include:
– Minimum credit score
– Minimum income (typically 3x the rent)
– Maximum allowable debt
– Required documentation
– Pet policy
– Disqualifying factors (like eviction history or certain convictions)
Having a consistent set of screening criteria helps you avoid inconsistent decisions or unconscious bias. It’s easier to say no when these elements are already set in stone.
6. Know When to Bring in the Pros
Tenant screening takes time, experience, and attention to detail. If you’re managing multiple properties or are tired of playing detective, it might be time to outsource.
Working with a property manager – especially one who specializes in residential rentals – can simplify the entire process. They have the systems, screening tools, and legal knowledge to handle applications professionally and objectively. They know how to spot red flags and verify information without missing a beat. And because they’re not emotionally attached to the process, they can make smarter, more objective decisions.
Yes, there’s a cost. But when you factor in the time saved, the risk reduced, and the peace of mind you gain, that investment almost always pays for itself many times over.
Your Tenant Is Your Business Partner
When you hand someone the keys to your property, you’re really entering into a partnership. They’re responsible for your income, your asset, and your long-term profitability.
So don’t take shortcuts or rely on your gut. And don’t assume every smiling applicant is a perfect fit. A solid screening process protects everything you’ve worked for. And whether you run it yourself or outsource it to a professional property manager, the goal is the same: minimize risk and maximize income.