How to screen potential tenants?

[Pramod Ponna]

Hello. I am new to real estate. I have a few questions about tenant screening.

1) Do we screen all the applications simultaneously or screen one application after another based on first come, first served?

2) If two applicants have similar profiles, but you like the second application better than the first one, what reason do you provide to the first applicant without violating the Fair Housing Act?

3) What if one of the applicants applied very late but offered 200 or 300 dollars more monthly for rent and requested that his application be approved? Is it okay to lease the property to this applicant without violating the Fair Housing Act? 

P.S: All the applicants have good credit scores, 3x income, and no criminal or eviction history.

[Nathan Gesner]

Quote from @Pramod Ponna:

1. I screen on a first come, first served basis. However, I do not start screening until the application is complete. This means every mandatory block is filled in, I have a copy of their photo ID, they provided me with supporting documentation, and they have paid the fee. If more than one adult is in their part, I don't start screening until every adult has a complete application. If they take too long, someone else may jump ahead of them in line.

2. I avoid this problem by sticking with the my process outlined above. The first approved applicant is offered the rental and I give them 24 hours to pay the deposit and sign the agreement. If they fail, I offer it to the next qualified applicant.

3. I avoid this by sticking with the process outlined above. Applicants offering to pay extra are a red flag. They often hope you'll go easy on the screening process in exchange for some extra money. Don't fall for the trap! A bad tenant will cost you much more than that.