Finding a “good” tenant is like finding a needle in a haystack. You post your listing online, you receive dozens of applications, and you’re quickly on the search for someone who will respect your property and pay on time – yet you have a limited amount of information to conclude whether they’ll be a good fit or not right from the start. These initial impressions can last for decades.
Most landlords find out the hard way that a gut feeling is not enough. That seemingly nice applicant who was so pleasant at the walk-through could have a criminal record for damaging a property the size of their first apartment. That person with the perfect credit score could be a nightmare to deal with down the road. There’s a reason why screening is a process, and if you can check off boxes to make the process seamless and accurate, you won’t have to deal with headaches down the line.
Why Screening Is More Important than You Think
Most people think screening helps landlords avoid problem tenants (which it does). However, truly good tenants appreciate when their potential landlords take the effort and time to screen potential residents, as this shows professional intent.
Landlords who constantly complain about bad tenants lament that they don’t pay rent on time. While this is absolutely true, the costs of having a bad tenant go far beyond monetary interests – they include reputation, stress, loss of neighborly understanding, and time spent wondering what went wrong. How much does it cost to hire an attorney to evict? How long does it take to convince the tenant to leave? How long will the apartment sit empty after they leave? The time lost repairing has got to cost thousands in fees and labor as well. One bad tenant can cost a landlord upwards of tens of thousands of dollars.
What You Can Screen For
Many aspects of personal financial stability are on credit reports. Therefore, it seems logical that if someone is behind on their own credit cards, they’re not going to be on time with your rent. However, that’s only part of the story. A big medical emergency that went unreported should not disqualify someone with an otherwise successful history of stability and rent payments.
You want to verify employment because you want to ensure that your tenants can afford your rent. Many suggest that rents should not surpass 30% of gross pay – however, in some areas, that’s not necessarily accurate, as many people pay more. Regardless, call an employer instead of accepting pay stubs – it’s far too easy to create false documentation these days.
Another big one is previous landlords; while friends and family may tell someone what they want to hear because they’re connected to them, getting an objective assessment from past landlords – people likely fed up if they lost a good tenant – brings value. However, tread carefully with quotes – an overly excited previous landlord may just be happy they’re gone but might have loved them at one point. Ask the former landlord how they treated the space, whether they paid on time and if they would ever rent to them again; the last question tends to get everyone to tell the truth – even if it means saying they’d prefer they move on but justified.
What You Cannot Legally Screen For
You cannot automatically exclude someone for something that makes you uncomfortable or challenged. People are protected by human rights legislation regarding race, family status, religion, and whether or not they’re seeking social assistance. This means that your criteria must be objective, above board, and applied uniformly across the board – or else you might get sued.
However, some landlords are curious about keeping informal records of tenants who’ve caused issues before or checking if someone had issues renting elsewhere. While this seems fair and unfortunate but ultimately justifiable when looking for safe tenants, asking for a bad tenants list opens up too many legal and privacy challenges in most jurisdictions. Therefore, create your system based on information sourced legally – and leave it at that.
Document absolutely everything about your screening system. If someone claims discriminatory practices brought them down in their application with you, be prepared to show how you determined that criterion was valid – and how it was valid for everyone who applied (or didn’t apply). Screenings should include applications, credit check notes and approvals/interviews and rejections because each element worked in tandem will help defend your position down the line.
What Constitutes A Red Flag
Some obvious red flags include those who refuse references or cannot explain gaps in their application histories (because yes, you’ll need that too). This includes applicants who are in a massive rush in an apartment they’re trying to get without asking simple questions about the lease period/restrictions/etc.
It’s not that these people should be automatically rejected; they simply need follow-up questions down the line. If their application has a different address than what their employer has on record, follow up – but don’t automatically exclude them. If their income doesn’t seem like they can pay for what they’re applying for, follow up! But don’t assume these things make them a bad tenant – good tenants can fall on hard times or make mistakes!
People badmouthing previous landlords is another red flag. It’s one thing to acknowledge someone who played hardball to get what they wanted; it’s another thing when every single previous landlord was out to get them – when that’s not true – they’re just a bad tenant.
Creating Your Screening Process
Your process starts with an application – a clear, concise document that everyone has to fill out that asks all relevant questions from employment history to previous addresses (at least three back), references (and subsequent questions) and permission slips to run credit checks.
Next, set your criteria before reviewing applications so that you’ve written down what is acceptable in terms of credit score required vs denied, income levels necessary vs unnecessary and how many previous landlords will make or break the deal. Documented evidence protects you legally as it has existed since before obtaining paperwork.
Review applications based on first come first serve – but not first meeting expectations based on credit check approvals/disapprovals once it’s signed. Whoever checks off all the boxes first gets the apartment.
The Interview Process
Interviews should be face-to-face or video meetings where there’s more information than paperwork can provide. You’re not their friend but neither are you their foe – you want to gauge whether they’ll be respectful towards you through managing your property.
Ask about their lifestyles (do you work from home? Do you have pets? Do you play any instruments?) so that you can assess which ones will play well (and which won’t) under the same roof – or in adjacent apartments. If you’re asking potential tenants whether they’ll clash with anyone else nearby (partying vs quiet walls), it’s time to move forward.
Finally, listen carefully how applicants talk about their prior living situations – if every issue existed because a landlord was incompetent but they’ve never owned before or had other experiences where they were the tenant – for every problem they’ve assigned a landlord – there’s probably not going to be a lot of realization about their role in past conflicts if they’re always shifting blame.
Trusting Your Instincts
Sometimes you just get a gut feeling – you’ve checked off all boxes and learn that something’s still off – not everything is black-and-white! It’s fine for landlords to trust their instincts about potential applicants – but it’s also essential not to back them blindly. If there’s no additional information in your screening process that substantiates an instinct feeling this way after hypothetically checking all boxes, then they’re likely just another bad tenant who made it through your process.
Perfection in tenants doesn’t exist – but people who seem responsible enough and willing to pay rent on time – and avoid calling every other landlord just to get their word – and putting it under shelter wherever it’s needed (like making up lies about neighbors – even if they’re justified) – prove they’ll work better than bad tenants who rush through applications since they’d never applied anywhere else.
The Renters’ Perspective
Finally, good screening isn’t only beneficial for you – but for whoever rents from you. When all boxes are checked – and the system indicates that a person can live in your space happily – it will help reduce tenant turnover, saving you money elsewhere while increasing stability needed for effective living arrangements.
