Follow Us on Social Media

email icon rss icon linked.in icon google plus icon twitter icon facebook icon

Tenant Screening: The Application & Selection Process – Putting it all Together

by Kevin Perk on November 12, 2012 · 10 comments

  

Over the past few weeks I have been discussing tenant screening.  I have noted that tenant screening is perhaps the most important thing a landlord can do, and discussed some of the do’s and don’ts of tenant screening.  In this article, I would like to put it all together and describe the tenant application and selection process.

Selecting Your Tenants

It all begins with the first point of contact.  The first contact is the time you need to start the pre-screening process.  First, make note of how your potential tenant sounds and acts.  Are they rude or are they courteous?  Are they abrupt or engaging?   If they are rude you can guess where they go on the selection pile.

Second, begin reading your script about the properties you have available and your screening questions.  Ask them:

  • Is this property what you were looking for?
  • Is this property in your price range?
  • When are you looking to move?
  • How many adults will be living with you?
  • Do you have any pets?  What kind?
  • Are you available after work for a showing?

With just those six questions I will have found out if they can afford the property, if they are moving when the property is available, the number of adults and pets and if they have a job.  Depending on their answers, you can disqualify some right away.  Others may be ready for the next step where you can set up a showing.

The Showing

At the showing, the screening process continues.  Do they show up on time?  Is their car full of junk?  Do they have food dripping down the front of their shirt?  You want people who are neat, clean and can keep an appointment to visit your properties, otherwise your rent will likely be late and your apartment will end up trashed.

The Tenant Application

If the showing goes well, the time comes for the formal application process.  What should you ask for on your application?  Here is what our application process requires:

  • Name, DOB, SS#, Current Address, Phone # and e-mail.
  • Addresses for the previous 3 years, w/contact info.
  • Current employer(s) contact info.
  • Info on any other income source.
  • Info on previous bankruptcy filings.
  • Info on previous eviction filings.
  • Info on previous criminal charges (except minor traffic violations).
  • What animals they own.
  • What vehicles they own along with their tag number.
  • We ask if they have ever broken a lease and if so why?
  • We ask if they have checking and savings accounts.
  • We ask for credit references.
  • We ask for emergency contact information.

Once we have the completed application and application fee ($25 per adult) in hand, we process the application.  We begin by pulling their credit report and criminal history.  We first compare the information on these reports with the information presented on the application.  If we find major discrepancies, such as an unreported bankruptcy or burglary conviction, they are done.  If we find minor discrepancies we realize people make mistakes and/or forget things so we may try to verify in other ways.

Ranking the Tenant Applicants

If everything checks out, we begin to rank the applicants according to our written standards.  Some of our written standards include:

  • Does the applicant make 3 times the amount of the monthly rent payment?
  • Do they have 3 or more good years of rental references?
  • Have they had an eviction?
  • Have they filed bankruptcy or been foreclosed on in the last 5 years?
  • What is their credit score?  How many accounts are in collection or how many accounts are 30, 60 and 90 days past due?
  • Is there a criminal record?
  • Are their pets on our approved pet list?
  • Were they neat, clean, prompt and courteous?

Each applicant then gets ranked according to each standard.  For example, if the applicant makes three times the rental amount that might be a +3 in their favor, if they have decent credit score with 2 accounts over 30 days past due that may only be a +1 in their favor, if they have a recent bankruptcy that would be -3.  If they have a recent eviction, that would equal instant disqualification.

What we are trying to get to is the highest ranking applicant for our property based upon our rental criteria.  We are trying to find people who can pay the rent, will pay the rent, will pay on time and will not cause trouble or destroy the place.  Sometimes someone may be right on the cusp of qualifying but may not make it due to lack of rental history, for example.  In that case we may take a co-signer, but we apply the same standards to the co-signer as well.

So there you have it.  A tenant screening and selection process designed to rank applicants on the basis of their ability to meet our standards while avoiding items which may be considered illegal discrimination.

Does it work all the time?  No, it does not.  Unforeseen things happen like job loss or illness that no one can predict.  Id does work most of the time and it has really cut down on the headaches and made the life of this landlord much easier.

Advertisement:
Screen Your Tenants Fast & Easy with BiggerPockets SmartMove – No Approval Process. No Applications. No Minimums. For independent landlords. Begin screening in minutes. Credit, criminal, fraud checks.

Photo: K D

Email *
  



{ 10 comments… read them below or add one }

Melisa November 12, 2012 at 9:05 am

This is an awesome article I am going to implement some of these strategies right now as I am looking for a good tenant.

Reply

Geoff November 12, 2012 at 11:52 am

I really like your “points” system, going to implement that to my screening.

Reply

Kevin Perk November 12, 2012 at 8:56 pm

Geoff,

It does make it easy to see who is the best. Plus if anyone ever comes looking, I can show exactly how and why they were selected or rejected.

Thanks for reading and commenting,

Kevin

Reply

Kevin Perk November 12, 2012 at 8:55 pm

Thanks for the kind words Melisa. I hope the info helps you out.

Kevin

Reply

John November 12, 2012 at 1:48 pm

What do you suppose the “score” for the tenants in the photo above was!? Sometimes its not always the tenant, it can be the tenants associates. Its always nice to be able to select the highest scoring applicants, and its always best to hold out for the good ones, even if it means foregoing a month. Eviction and repairs are much more costly. Happy managing all.

Reply

Kevin Perk November 12, 2012 at 9:01 pm

John,

I bet his score was low! And you are right, it can be the tenant’s associates. But I think there is some truth to the old saying that “birds of a feather flock together.” If a person is a deadbeat, they will attract other deadbeats and non-deadbeats will not. But you are correct, there are exceptions to every old saying. We can only do the best we can with the info we have available.

And I agree, waiting a little bit for a better tenant is often better than letting someone with a lower score in as you will usually pay for it on the back end.

Thanks for reading and commenting,

Kevin

Reply

Josh November 18, 2012 at 6:04 pm

I often hear landlords say that you must take the first qualified applicant. This would not allow you to find the best ‘scoring’ applicant. What do you think?

Reply

Kevin Perk November 25, 2012 at 8:26 pm

Josh,

Sorry for my late reply.

I think the best scoring applicant would be the most qualified so you would want to rent to that person. It all gets back to those standards you set up. You can determine what “qualified” is as long as you are not breaking federal anti-discrimination law. So choose wisely.

Thanks for reading and commenting,

Kevin

Reply

Alex December 9, 2012 at 7:17 pm

Kevin, thank you for sharing this valuable information with us. Your screening process is very comprehensive and accurate. After implementing all of the steps you have outlined, the probability that you will end with a good tenant is very high.

Regards,
Alex

Reply

Kevin Perk December 9, 2012 at 8:18 pm

Thanks Alex,

We have had pretty good success with our system.

Glad I was able to help out.

Kevin

Reply

Leave a Comment

Comment Policy:

• Use your real name and only your name in the field designated for your name.
• No keywords allowed as anchor text in the name or comment fields.
• No signature links allowed under your comments
• You may use links in the body of your comment, but it must be relevant to the discussion at hand, and not merely be some promotional link.
• We will have NO reservations about deleting your content if we feel you are posting merely to get a link without adding value to our discussion.
If you add value, but still post keywords, we'll use your comment, but remove your link and keywords.
• For more information about acceptable practice, see our site rules.

Want your photo to appear next to your comments? Set up your Gravatar today.

Previous post:

Next post: