best-property-management-software-2026): The Complete Landlord's Guide

Tenant screening is the single most important factor determining your success as a landlord. One bad tenant costs more than a decade of perfect rent payments from good ones—through eviction costs, property damage, legal fees, and lost rent.

Yet most landlords either skip screening entirely or run superficial checks that miss critical red flags. This comprehensive guide shows you exactly [how to screen tenants](/blog/tenant-screening-guide) like a professional, from the initial phone call to the final approval decision.

Why Screening Matters More Than Everything Else

The numbers are sobering:

Average eviction cost: $3,500-$10,000 in legal fees, lost rent, and damages. In tenant-friendly states, it can exceed $20,000.

Average property damage from bad tenants: $2,000-$8,000 beyond normal wear and tear and security deposits.

Time cost: Evictions take 2-6 months. Add another month for repairs and re-renting. That's 3-7 months of stress, lost income, and time you can't recover.

Opportunity cost: While dealing with a problem tenant, you can't focus on acquiring new properties or managing your portfolio effectively.

Compare that to the cost of comprehensive screening: $25-$50 per applicant and 2-4 hours of your time.

Thorough screening doesn't guarantee perfect tenants, but it eliminates 95% of problem tenants before they become your problem.

The Screening Timeline

Professional tenant screening happens in stages, with each stage filtering out unsuitable applicants:

Stage 1: Phone/Email Pre-Screening (5-10 minutes) — Weed out obviously unqualified applicants before wasting time on showings.

Stage 2: Property Showing (30-45 minutes) — Observe applicant behavior, answer questions, and gauge seriousness.

Stage 3: Application Collection (0 minutes, applicant's time) — Collect detailed application with authorization to run background checks.

Stage 4: Credit and Background Reports (1-2 days) — Run comprehensive screening reports.

Stage 5: Income and Employment Verification (1-2 hours) — Verify the applicant can actually afford the rent.

Stage 6: Landlord References (1 hour) — Get the truth about rental history from people who've dealt with this tenant.

Stage 7: Final Decision (30 minutes) — Evaluate all information against objective criteria.

Stage 8: Conditional Approval (15 minutes) — Offer lease contingent on final verifications.

Never skip stages to fill a vacancy faster. The cost of rushing far exceeds a few extra weeks of vacancy.

Stage 1: Phone and Email Pre-Screening

Before scheduling showings, ask qualifying questions:

When do you need to move in? Eliminates applicants whose timing doesn't match your availability.

How many people will be living in the property? Check against occupancy limits (federal standard: 2 people per bedroom, but varies by state and local law).

Do you have pets? If your property is no-pets or has restrictions, no point showing to pet owners.

What's your monthly household income? You need 3x the monthly rent minimum. If they can't meet this, they can't afford the property.

Why are you moving? Listen for red flags: evicted, disputes with current landlord, frequent moves.

Have you ever been evicted or filed bankruptcy? Disqualifying answers end the conversation immediately.

Have you reviewed the rent, deposit, and lease terms in the listing? Confirms they understand what they're applying for.

This 5-minute conversation eliminates 50%+ of applicants. Be friendly but direct. You're not being rude—you're respecting everyone's time.

Document everything. Create a simple spreadsheet tracking all applicants: name, contact info, move-in date, income, and screening status.

Stage 2: The Property Showing

Showings aren't just for the applicant to see the property—they're for you to evaluate the applicant.

Watch for these green flags:

Arrives on time (or calls if running late)
Asks thoughtful questions about the property and neighborhood
Takes care reviewing the property condition
Brings notepad or takes notes
Discusses timeline and next steps professionally
Mentions stable employment or local ties
Currently renting (not being evicted or homeless)

Watch for these red flags:

Late without calling or doesn't show at all
Brings large groups of people unannounced
Makes negative comments about property or previous landlords
Focuses only on how quickly they can move in (desperation)
Vague answers about employment or income
Aggressive negotiating before even applying
Signs of substance use or intoxication
Inappropriate questions or behavior

Trust your instincts. If something feels off during the showing, it usually is.

Fair Housing Compliance: Never ask about race, religion, national origin, familial status, disability, or other protected characteristics. Stick to objective rental qualification criteria applied equally to all applicants.

Stage 3: The Rental Application

Your application must collect enough information to make an informed decision. Include:

Personal Information:

Full legal name (all adults who will occupy the property)
Current address and how long they've lived there
Previous address and how long (go back 3-5 years minimum)
Date of birth and Social Security number (for credit and background checks)
Phone number and email
Driver's license number and state

Employment and Income:

Current employer, position, supervisor name, and phone
Length of employment
Gross monthly income
Previous employer (if current job is less than 2 years)
Other income sources

Rental History:

Current landlord name, address, phone
Monthly rent and lease dates
Previous landlord information (critical—see below)
Reason for moving

References:

Personal references (less useful, but include)
Emergency contact

Additional Questions:

Have you ever been evicted? When and why?
Have you ever filed bankruptcy? When?
Have you ever broken a lease? When and why?
Do you smoke?
Do you have pets? Breed, weight, age?
Have you ever been convicted of a felony? When and what charge?

Authorization:

Signature authorizing credit check, criminal background check, and eviction report
Signature authorizing contact with employers and landlords
Certification that all information is true and complete
Statement that false information is grounds for application denial or lease termination

Application Fee: Charge enough to cover your actual costs ($25-$50). Some states cap application fees. Never profit from application fees.

Use a standardized application for every applicant. Changing requirements between applicants violates fair housing laws.

Stage 4: Credit and Background Reports

Order comprehensive screening reports for every qualified applicant. Never skip this step.

Credit Report

Shows payment history, current debts, credit score, and financial responsibility.

What you're looking for:

Credit score 600+ (650+ is better, 700+ is ideal)
No recent evictions or judgments
No collections from previous landlords
Reasonable [debt-to-income ratio](/blog/dti-ratio-explained)
No bankruptcies in past 2-3 years
History of on-time payments

Credit red flags:

Score below 600
Multiple late payments in past year
High credit utilization (maxed out cards)
Collections, especially from previous landlords or utilities
Recent bankruptcy or foreclosure
Judgments or liens

Credit isn't everything. Someone with a 580 score but stable 10-year employment might be better than someone with a 750 score but who job-hops every six months. But credit score below 600 dramatically increases default risk.

Criminal Background Check

Shows criminal history including convictions, pending charges, and sex offender registry status.

What you're checking:

Violent crimes (assault, domestic violence, weapons charges)
Property crimes (theft, vandalism, arson)
Drug manufacturing or distribution
Sex offenses (especially important for family properties)

Fair Housing Considerations: You cannot have blanket bans on all criminal records—that can constitute illegal discrimination. HUD guidance says you must consider:

Nature and severity of the crime
Time since the crime
Rehabilitation evidence
Relationship to tenant safety and property protection

You can deny applications for recent violent crimes, drug trafficking, sex offenses, or property crimes. Old misdemeanor marijuana possession from 15 years ago? Not a basis for denial in most cases.

Eviction Report

Shows prior evictions, [unlawful detainer](/blog/how-to-handle-eviction) judgments, and landlord-tenant court records.

Absolute red flag: Eviction within past 7 years, especially multiple evictions. An eviction demonstrates:

Failed to pay rent
Violated lease terms seriously enough for court action
Likely to repeat the behavior

Very few landlords should accept tenants with recent eviction history. The risk is too high.

Where to Order Reports

TransUnion SmartMove ($25-$45): Tenant pays for their own report. Credit, criminal background, and eviction search. Landlord receives results within 24 hours.

RentPrep ($21-$40): Landlord pays. Fast turnaround, excellent eviction database, good customer service.

MyRental ($25-$55): Comprehensive screening including sex offender registry, terrorist watch list, and nationwide criminal search.

Experian, Equifax, or TransUnion directly: Credit reports only. Less convenient than all-in-one screening services.

Never accept screening reports provided by the applicant. They can be altered. Always order reports yourself or through a verified tenant-paid service.

Stage 5: Income and Employment Verification

Credit and background reports verify the past. Income verification confirms they can afford the property going forward.

Income Requirements

Standard: Gross monthly income at least 3x monthly rent. For a $2,000/month rental, tenant needs $6,000/month gross income ($72,000/year).

Some landlords go to 3.5x or 4x in expensive markets. Others accept 2.5x for tenants with excellent credit and rental history.

Whatever your requirement, apply it consistently to all applicants.

How to Verify Income

Never accept self-reported income. Always verify independently:

For W-2 employees:

Request last 2-3 pay stubs showing year-to-date income
Call employer directly to verify employment, position, salary, and hire date
Look for red flags: income doesn't match pay stubs, "employer" isn't aware of the employee, short employment history

For self-employed applicants:

Request last 2 years of tax returns (Form 1040 with Schedule C)
Request bank statements showing consistent deposits
Consider requiring 6-12 months of bank statements to verify income stability
Self-employed income is less predictable—some landlords require 4x rent instead of 3x

For applicants with non-employment income:

Social Security/disability: Request award letter from SSA
Retirement/pension: Request bank statements showing deposits
Child support/alimony: Request court order and bank statements showing payments
Investment income: Request tax returns and brokerage statements

Red flags:

Won't provide [documentation](/blog/heloc-documentation-requirements)
Pay stubs that look homemade or altered
"Employer" phone goes to voicemail or personal cell phone
Recently started job (less than 3 months)
Income barely meets requirement with no cushion

Stage 6: Landlord References

This is where you get the truth. Credit reports show financial history; landlords show behavior as a tenant.

The Critical Trick: Call the PREVIOUS Landlord, Not Current

Current landlords might lie to get rid of a bad tenant. Previous landlords have no incentive to mislead you.

Ask current landlord:

Verify tenant currently lives there
Verify rent amount and payment dates
Confirm move-out date

Ask PREVIOUS landlord:

Did tenant pay rent on time every month?
Were there any late payments or bounced checks?
Did tenant maintain the property well?
Were there noise complaints or issues with neighbors?
Did tenant follow lease terms?
Did you have to keep security deposit? Why?
Any property damage beyond normal wear and tear?
Would you rent to this tenant again? (The most important question)

If the previous landlord hesitates on that last question, dig deeper. Reluctance to re-rent is a massive red flag.

Red Flags from Landlord References

Landlord won't give reference or doesn't return calls
Frequent late payments ("they usually paid by the 10th")
Multiple complaints from neighbors
Property damage
[Lease violations](/blog/dealing-with-problem-tenants)
Wouldn't re-rent to them
"They were fine, but I was glad when they left" (read between the lines)

When You Can't Reach Previous Landlords

Applicant lived with family, first-time renter, or previous landlord is unreachable:

Accept verifiable alternate housing history (dorm RA, military housing officer)
Require higher security deposit
Require co-signer with good credit and rental history
Weight other factors (excellent credit, stable employment, strong income) more heavily

Stage 7: Making the Decision

You've collected all information. Now make an objective decision based on clear criteria.

Automatic Disqualifications

These should automatically disqualify applicants (apply consistently to everyone):

Eviction within past 7 years
Lied on application (false employment, income, rental history)
Income below your minimum threshold (typically 3x rent)
Criminal history involving violence, drugs, or property crimes within your criteria
Currently in bankruptcy
More occupants than allowed by law
Dangerous or prohibited pets (where applicable)

Weighted Criteria

For applicants who meet minimum standards, weight these factors:

High importance:

Rental payment history (on-time every month is gold standard)
Income stability (same job 2+ years)
Income amount (higher is better—4x rent is better than 3x)
Credit score (650+ is good, 700+ is excellent)
Previous landlord recommendation

Medium importance:

Length of previous tenancies (longer is better—shows stability)
Reason for moving (better job, buying a house, lease ending are positive; eviction, complaints, disputes are negative)
Employment history (2+ years in same field shows stability)
Current debts (lower is better)

Lower importance:

Personal references (friends and family always give glowing reviews)
Age, profession, or background (cannot be discriminatory factors)

When you have multiple qualified applicants, choose based on these objective criteria. Document your decision-making process.

First-come, first-served myth: You don't have to rent to the first qualified applicant. You can collect applications for 3-7 days and choose the most qualified. What you cannot do is discriminate based on protected characteristics.

Stage 8: Approval and Move-In

Once you've selected your tenant:

Send conditional approval in writing via email. Include:

Approval subject to final verifications
Required security deposit and first month's rent amounts
Payment deadline (typically 24-48 hours)
Move-in date
Next steps (lease signing, keys, utilities)

Collect move-in funds before giving keys. Always. Cashier's check, certified check, or electronic transfer only. Never personal checks or cash for large amounts.

Sign the lease before move-in. Walk through the property together, document condition with photos and a move-in checklist, and have tenant sign acknowledging condition.

Provide keys only after you have cleared funds and signed lease.

Notify rejected applicants professionally: "Thank you for applying. We've selected another applicant who more closely met our rental criteria. We wish you the best in your housing search."

Do not specify why they were rejected unless required by law (adverse action notices for credit-based denials).

Common Screening Mistakes

Skipping screening for "nice" people. Scammers are charming. Screen everyone.

Accepting incomplete applications. Missing information is a red flag. Require complete applications before processing.

Not verifying information. Applicants lie. Verify everything independently.

Rushing to fill vacancy. Vacancy for one extra month costs one month's rent. Bad tenant costs 6-12 months plus thousands in damage. Wait for the right tenant.

Inconsistent criteria. Require the same standards of every applicant. Inconsistency is both bad business and illegal discrimination.

Trusting your gut over data. Someone can seem trustworthy but have three evictions. Data beats intuition.

Not documenting decisions. Document why you chose one applicant over others. Protects against discrimination claims.

Fair Housing Compliance

Federal [fair housing law](/blog/landlord-tenant-law-basics) prohibits discrimination based on:

Race
Color
National origin
Religion
Sex (including sexual orientation and gender identity)
Familial status (families with children)
Disability

Many states and cities add protections for:

Source of income (cannot reject Section 8 vouchers in many jurisdictions)
Age
Marital status
Military/veteran status

How to stay compliant:

Use objective, written screening criteria applied to all applicants
Never ask about protected characteristics
Don't make assumptions based on names, appearance, or accents
Provide reasonable accommodations for disabilities (service animals, physical modifications)
Document all screening decisions
Treat all applicants identically in process and requirements

When in doubt, consult a [real estate attorney](/blog/how-to-build-real-estate-team) familiar with fair housing law in your state.

Frequently Asked Questions

Can I reject an applicant with a service animal if I have a no-pets policy?

No. Service animals and emotional support animals are not pets under fair housing law. You must provide reasonable accommodation for documented service/support animals even with no-pets policies. You can require documentation from a healthcare provider for emotional support animals.

What if two applicants are equally qualified?

Choose based on objective tiebreakers: higher income, better credit score, longer employment, better landlord reference. Document your reasoning. You can also go first-come, first-served if applications arrived at different times. Never use protected characteristics as tiebreakers.

Can I charge different application fees to different applicants?

No. Application fees must be consistent for all applicants. Charge only actual costs of screening (credit report, background check, processing time). Many states cap application fees at $30-$75.

Should I run screening reports on everyone who applies or only top candidates?

Run reports only after reviewing applications and confirming basic qualifications (income, rental history, no obvious disqualifiers). No point spending $35 on screening someone who doesn't meet minimum income requirements. But run reports on all finalists before deciding.

Can I reject applicants with no credit history?

Thin or no credit isn't automatically disqualifying, especially for young renters. Focus on other factors: rental history, income stability, employment, and landlord references. Consider requiring a co-signer or higher security deposit for first-time renters with no credit.

What if an applicant has a bankruptcy but excellent income and rental history?

Bankruptcy alone shouldn't disqualify if it's older than 2-3 years and other factors are strong. Bankruptcies happen due to medical bills, divorce, or business failure—not always poor financial management. Look at the full picture. Current eviction is worse than old bankruptcy.

Can I ask how many children an applicant has?

You can ask how many total occupants will live in the property (required for occupancy limits), but you cannot discriminate against families with children. Never ask specifically about children's ages, gender, or number, and never suggest your property isn't suitable for children.

Should I accept co-signers?

Yes, for applicants who don't quite meet income requirements but are otherwise qualified (college graduates in first job, young professionals, career changers). Run full screening on co-signer too: credit, income verification, and background check. Co-signer should have excellent credit and income of 5-6x the monthly rent.

How long should I keep application materials?

Keep all applications, screening reports, and decision documentation for at least 2-3 years. This protects you if someone files a discrimination complaint. Store securely to protect applicant privacy—these documents contain sensitive personal information.

Can I Google or check social media on applicants?

Legally, yes, but it's risky. Social media can reveal protected characteristics (religion, familial status, national origin) that you legally cannot use in decisions. If you see protected information online and reject the applicant, they could claim discrimination. Better to stick with formal screening criteria that everyone receives equally.

Tenant Screening: The Complete Landlord's Guide

Key Takeaways