Finding the right tenant can make or break your rental experience. A great tenant treats the property well, pays rent on time, and communicates respectfully. A bad tenant, on the other hand, can cost you thousands in missed payments, repairs, and legal battles.
Whether you’re managing a single property or a growing portfolio, screening effectively protects your investment and your peace of mind.
Should You Hire a Property Management Company?
Before diving into the nitty-gritty of tenant screening, it’s worth considering whether you want to handle this process yourself or leave it to the professionals.
A property management company does more than collect rent and handle maintenance calls. They typically oversee marketing, tenant screening, lease agreements, inspections, and even evictions if necessary. When it comes to screening specifically, a reputable property manager has access to detailed background check systems, standardized procedures, and legal expertise that helps keep the process compliant with fair housing laws.
For landlords who are new to renting, live far from their property, or simply want to make the process hands-off, hiring a management company is often worth the investment. Their experience in spotting red flags and verifying applicant information can be the difference between landing an excellent tenant and dealing with months of stress.
That said, many landlords prefer to handle screening themselves, especially if they only manage one or two units.
Prioritize Rental History and References
A tenant’s past behavior is often the best indicator of how they’ll treat your property. When reviewing applications, pay close attention to their rental history. Have they stayed in past rentals for reasonable lengths of time, or do they have a pattern of moving every few months?
Contacting previous landlords can be highly revealing. Ask questions like: Did they pay rent on time? Was the property kept in good condition? Were there any complaints from neighbors? Would you rent to this person again?
Keep in mind that some landlords may hesitate to share detailed information, especially if the tenant is currently living there.
Verify Income and Employment
Even the most responsible tenant can become a problem if they can’t reliably afford rent. Standard advice suggests that tenants should earn at least three times the monthly rent to comfortably meet their financial obligations.
Ask for recent pay stubs, W-2s, or a letter from their employer to verify income. For self-employed applicants, tax returns or recent bank statements can offer similar confirmation.
If the numbers are tight, that doesn’t automatically mean they’re a bad tenant, but it’s a risk you need to weigh carefully. Some landlords are open to cosigners or higher deposits in these cases, while others prefer to stick with applicants who clearly meet income benchmarks.
Check for Evictions and Criminal History
A background check should include any history of evictions. One eviction several years ago, followed by solid rental history since, might not be disqualifying, but recent or multiple evictions should be cause for serious concern.
As for criminal background checks, landlords need to be careful. Blanket policies that deny applicants for any criminal record can violate fair housing laws in some states. Focus on offenses that are relevant to tenancy, like violent crimes, drug manufacturing, or property-related offenses.
Make sure you’re familiar with local regulations when factoring criminal history into your decision-making.
Run a Credit Check (But Look at the Full Picture)
Credit reports are a useful tool, but they don’t tell the entire story. A high credit score generally suggests that a tenant pays bills responsibly, but minor dings like old medical debt or a missed payment years ago aren’t always deal-breakers.
More important than the score itself is the pattern of behavior. If everything else checks out but the credit report raises a few questions, consider having a conversation with the applicant before making a decision.
Evaluate Communication and Reliability
The screening process itself often reveals more than the paperwork does. Pay attention to how applicants communicate. Are they responsive, polite, and organized? Do they provide documents quickly and answer questions clearly?
Applicants who are evasive, hard to reach, or inconsistent in what they tell you may signal future problems. Reliable tenants tend to show their professionalism from the very beginning.
Trust Your Process (Not Just Your Gut)
It’s natural to trust your instincts when meeting potential tenants. While first impressions are useful, they should never replace a thorough screening process. An applicant might seem charming and trustworthy in person while hiding poor credit or a history of skipped rent.
Fully Utilizing Tenant Screening
Tenant screening is one of the most crucial steps you can take in protecting your rental property and your income. While it’s tempting to fill a vacancy quickly, taking the time to verify income, review rental history, check credit, and assess communication habits pays off in the long run.