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Updated over 5 years ago on . Most recent reply

User Stats

55
Posts
18
Votes
Hans M.
  • Investor
  • St. Louis, MO
18
Votes |
55
Posts

Must I Run Credit/Background check on ALL applicants?

Hans M.
  • Investor
  • St. Louis, MO
Posted

Newbie here. It's my first time screening tenants, and I'm wondering if it's okay to ask for background/credit reports for only the most qualified applicants, according to the information they filled out on my rental application. So for example, seven people fill out a rental application, but I only ask for the credit/background report on the top three out of those seven applications, based on what they report as their income, credit score, etc. My thought was that this would save time/money for the less qualified potential tenants, as well as encourage more people to apply, as opposed to look at the application fee ($30 per person), balk, and walk away.

Are there any potential problems with this method?

Most Popular Reply

User Stats

30
Posts
17
Votes
Scott Donahue
  • Rental Property Investor
  • Indianapolis, IN
17
Votes |
30
Posts
Scott Donahue
  • Rental Property Investor
  • Indianapolis, IN
Replied

@Hans Moscicke Yes. Period. Only the serious tenants will pay the application fee. It’s a fantastic barrier for entry and way to pre-screen you tenants without actually doing any work. Why not have them self select out versus you having to select them out and open yourself up for a law suit? Remember, the non-discrimination laws are unforgiving.

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