Renter Screening Criteria
Member since 2024 · 11 posts · 7 votes
Renter Screening Criteria
Most Popular Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votesQuote from @Raveendra Singh:
Hi,
What is your criteria for tenant screening. My property is multifamily home and its in an average/good service class neighborhood. High rental demand. I am looking to firm up my documented criteria.
Credit of 620+ (unpaid rent, open judgements form previous landlords, bankruptcy in past 2 yrs ,)
3X income - If all other is good, with a cosigner may go up to 2.75
No Criminal record in past 7 yrs
No eviction in past 5 yrs
Rental History - Is 2 yrs min ? or should be more or less . Basic questions asked to previous landlords.
Collections - rent related (Is utility a deal breaker , what else is a deal breaker)
Income stability - Do you consider this ?
Do you consider other items in screening? Would you go back to the applicant asking to any information if they havent provided initially or make decisions based on provided once. .
Thank you.
R
What Class if the neighborhood and your property?
Given you have set minimum of 620 score, leads me to guess you have Class B.
If so, no criminal in past 7 years is extreme (our opinion). Maybe go with 5.
What happens if bankruptcy & eviction tied together?
We always ask for minimum of 2-years residency history or minimum of last 2 landlords. Only exception is if same landlord for last 5 years. Reason: in our experience a landlord from more than 5 years ago won't remember the tenant or have records.
- Questions to ask landlords should be designed to catch fraud!
--- DO NOT ask them to just confirm info, "Can you confirm the tenant lived there for 12 months". Too easy for fraudster to just say "yes".
--- Ask open-ended questions for them to state: how long there, rent amount, how many occupants, pets, any unpaid utility bills or damages.
The lower the credit score, the more important consistent work history is. So, we require 2-year work history and look for negative patterns. Job hopping isn't an issue unless very short work stays or large gaps between jobs.
- We also ask for last year's W-2(s) to confirm work history and income stability.
Regarding credit, credit scores can be misleading!!!!
many tenants are opening Chime accounts - these play games with a "fake" self-loan to generate positive trade line info. We ignore them.
- We look for at least 2 tradelines, active within the last 12 months, that have at least 24 months of reporting. Otherwise, we focus on rental & work history.
We also get a bank statement to minimize fake paystubs. Over 80% of employers now direct deposit into bank account. You can see last 4 digits of bank account on the paystub.
- You can also see a lot of other info on a bank statement. We recently got a bank statement that showed the tenant betting over $5k monthly online. Are they going to gamble their rent away?
Logical Property Management4.9459 Reviews
18 Replies
- 3moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Raveendra Singh:
Hi,
What is your criteria for tenant screening. My property is multifamily home and its in an average/good service class neighborhood. High rental demand. I am looking to firm up my documented criteria.
Credit of 620+ (unpaid rent, open judgements form previous landlords, bankruptcy in past 2 yrs ,)
3X income - If all other is good, with a cosigner may go up to 2.75
No Criminal record in past 7 yrs
No eviction in past 5 yrs
Rental History - Is 2 yrs min ? or should be more or less . Basic questions asked to previous landlords.
Collections - rent related (Is utility a deal breaker , what else is a deal breaker)
Income stability - Do you consider this ?
Do you consider other items in screening? Would you go back to the applicant asking to any information if they havent provided initially or make decisions based on provided once. .
Thank you.R
Welcome to BP, Raveendra. Your criteria already covers most of the major risk factors. The biggest thing I've learned is that consistency is more important than having extremely strict standards. You want clear written criteria that you apply the same way to every applicant. I typically look at the whole picture rather than any single metric. Credit score matters, but I pay more attention to why the score is what it is. An applicant with medical collections and otherwise solid payment history is very different from someone with unpaid rent, recent charge-offs, or a pattern of missed housing payments. Income stability is definitely something I consider as well. Someone who has been employed consistently for a year or more in the same field generally gives me more confidence than someone who changes jobs every few months. For rental history, two years is usually sufficient if you can verify it, and I always want to speak with current and previous landlords when possible. Evictions, landlord judgments, and unpaid rent balances are generally bigger concerns than utility collections, although multiple utility collections can sometimes indicate broader financial management issues. If an application is missing information, I usually give the applicant an opportunity to provide documentation or clarification before making a final decision. Some of my best tenants weren't perfect on paper, but they were transparent, responsive, and could clearly explain any issues in their background. The goal is to identify patterns and overall reliability rather than screening solely based on one number or one isolated event.
Jimmy Lieu, Red 1 Realty4.9120 Reviews - 3moJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 712 posts · 520 votes
Solid starting framework Raveendra. Here's what I run:
Credit 620+, no rent-related collections, no open landlord judgments, no bankruptcy in past 2 years
Income 3x rent, verified with 2 months of pay stubs or 2 years of tax returns for self-employed
No evictions in past 7 years (5 is too short, eviction stays on record longer)
No violent or property-related criminal record in past 7 years
2 years of verifiable rental history with prior landlord referencesOn income stability, yes, absolutely consider it. Same employer 2+ years is a green flag. Multiple short stints in the past year is a yellow flag worth a conversation. Self-employed needs tax returns plus bank statements showing consistent deposits.
On utility collections, not always a deal breaker but it's a pattern to watch. One small old utility collection from years ago is different from multiple recent ones. Use judgment.
On asking for more info, always go back and ask. If something's missing or unclear, that's not a rejection, that's part of the process. A lot of people don't submit everything the first time. Document every request in writing so your screening is consistent across applicants.
Most important, apply the same criteria to every applicant. Inconsistent screening is where fair housing trouble starts. Have your criteria written down and follow them every time.
- 3moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @James Jones:
Solid starting framework Raveendra. Here's what I run:
Credit 620+, no rent-related collections, no open landlord judgments, no bankruptcy in past 2 years
Income 3x rent, verified with 2 months of pay stubs or 2 years of tax returns for self-employed
No evictions in past 7 years (5 is too short, eviction stays on record longer)
No violent or property-related criminal record in past 7 years
2 years of verifiable rental history with prior landlord referencesOn income stability, yes, absolutely consider it. Same employer 2+ years is a green flag. Multiple short stints in the past year is a yellow flag worth a conversation. Self-employed needs tax returns plus bank statements showing consistent deposits.
On utility collections, not always a deal breaker but it's a pattern to watch. One small old utility collection from years ago is different from multiple recent ones. Use judgment.
On asking for more info, always go back and ask. If something's missing or unclear, that's not a rejection, that's part of the process. A lot of people don't submit everything the first time. Document every request in writing so your screening is consistent across applicants.
Most important, apply the same criteria to every applicant. Inconsistent screening is where fair housing trouble starts. Have your criteria written down and follow them every time.
Why do you need 2 months of paystubs?
90%+ show YTD income, so why don't you calculate the monthly off of 1 YTD paystub?
Logical Property Management4.9459 Reviews - 2moJames JonesPro MemberInvestor · Collierville, TN 38017 · Member since 2017 · 712 posts · 520 votes
Quote from @Drew Sygit:
Quote from @James Jones:
Solid starting framework Raveendra. Here's what I run:
Credit 620+, no rent-related collections, no open landlord judgments, no bankruptcy in past 2 years
Income 3x rent, verified with 2 months of pay stubs or 2 years of tax returns for self-employed
No evictions in past 7 years (5 is too short, eviction stays on record longer)
No violent or property-related criminal record in past 7 years
2 years of verifiable rental history with prior landlord referencesOn income stability, yes, absolutely consider it. Same employer 2+ years is a green flag. Multiple short stints in the past year is a yellow flag worth a conversation. Self-employed needs tax returns plus bank statements showing consistent deposits.
On utility collections, not always a deal breaker but it's a pattern to watch. One small old utility collection from years ago is different from multiple recent ones. Use judgment.
On asking for more info, always go back and ask. If something's missing or unclear, that's not a rejection, that's part of the process. A lot of people don't submit everything the first time. Document every request in writing so your screening is consistent across applicants.
Most important, apply the same criteria to every applicant. Inconsistent screening is where fair housing trouble starts. Have your criteria written down and follow them every time.
Why do you need 2 months of paystubs?
90%+ show YTD income, so why don't you calculate the monthly off of 1 YTD paystub?
Fair point, and YTD is the better number for the actual income math. I use it the same way you do.
The reason I still want two recent stubs isn't the calculation, it's the recency check. YTD tells me the average over the year. Two current stubs tell me they're still employed and still earning right now. Someone can have a strong YTD and have stopped working six weeks ago, or dropped from full time to part time, and one YTD stub won't show it. The two most recent ones catch the change in trajectory.
So really it's both. YTD for the annualized figure, the latest stub for "is this still true today." Not trying to bury them in paperwork, just confirming the income didn't fall off a cliff since January.
- 2moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @James Jones:
Quote from @Drew Sygit:
Quote from @James Jones:
Solid starting framework Raveendra. Here's what I run:
Credit 620+, no rent-related collections, no open landlord judgments, no bankruptcy in past 2 years
Income 3x rent, verified with 2 months of pay stubs or 2 years of tax returns for self-employed
No evictions in past 7 years (5 is too short, eviction stays on record longer)
No violent or property-related criminal record in past 7 years
2 years of verifiable rental history with prior landlord referencesOn income stability, yes, absolutely consider it. Same employer 2+ years is a green flag. Multiple short stints in the past year is a yellow flag worth a conversation. Self-employed needs tax returns plus bank statements showing consistent deposits.
On utility collections, not always a deal breaker but it's a pattern to watch. One small old utility collection from years ago is different from multiple recent ones. Use judgment.
On asking for more info, always go back and ask. If something's missing or unclear, that's not a rejection, that's part of the process. A lot of people don't submit everything the first time. Document every request in writing so your screening is consistent across applicants.
Most important, apply the same criteria to every applicant. Inconsistent screening is where fair housing trouble starts. Have your criteria written down and follow them every time.
Why do you need 2 months of paystubs?
90%+ show YTD income, so why don't you calculate the monthly off of 1 YTD paystub?
Fair point, and YTD is the better number for the actual income math. I use it the same way you do.
The reason I still want two recent stubs isn't the calculation, it's the recency check. YTD tells me the average over the year. Two current stubs tell me they're still employed and still earning right now. Someone can have a strong YTD and have stopped working six weeks ago, or dropped from full time to part time, and one YTD stub won't show it. The two most recent ones catch the change in trajectory.
So really it's both. YTD for the annualized figure, the latest stub for "is this still true today." Not trying to bury them in paperwork, just confirming the income didn't fall off a cliff since January.
I can understand what you're trying to accomplish, but getting multiple paystubs does NOT prove what you want.
They could still just give you the last two they got before they got laidoff or let go.
That's why we either:
- Require the most recent paystub and verify payroll schedule by Start & End Dates
- Call the employer and ask to speak with them or supervisor - you will often find out quickly if they still work there or not.Keep up your great responses!
Logical Property Management4.9459 Reviews
- Real Estate Agent · Memphis · Member since 2026 · 573 posts · 338 votes3mo
The biggest thing I've learned is that consistency matters just as much as the criteria themselves. Whatever standards you establish, apply them uniformly to every applicant.
The categories I typically focus on are:
Financial
• Income-to-rent ratio
• Credit history and payment patterns
• Collections (especially housing-related)
• Bankruptcy historyRental History
• Previous landlord references
• On-time payment history
• Lease violations
• Property care and maintenance issuesStability
• Employment history
• Length of time with current employer
• Consistency of income sourcesBackground
• Criminal history review consistent with applicable laws
• Prior evictionsOne thing I pay close attention to is whether the overall story makes sense. Sometimes an applicant may have a lower credit score but strong income, stable employment, and excellent rental references. Other times the individual screening items look acceptable, but the complete picture raises concerns.
As for missing information, I'd generally rather ask for clarification than make assumptions. Missing documents, employment verification, or rental history gaps don't automatically mean "deny" to me, but I'd want the file complete before making a decision.
Out of curiosity, are most of your applicants local W-2 employees, or are you seeing a lot of self-employed applicants? That can sometimes affect how detailed the income verification process needs to be.
- 3moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Raveendra Singh:
Hi,
What is your criteria for tenant screening. My property is multifamily home and its in an average/good service class neighborhood. High rental demand. I am looking to firm up my documented criteria.
Credit of 620+ (unpaid rent, open judgements form previous landlords, bankruptcy in past 2 yrs ,)
3X income - If all other is good, with a cosigner may go up to 2.75
No Criminal record in past 7 yrs
No eviction in past 5 yrs
Rental History - Is 2 yrs min ? or should be more or less . Basic questions asked to previous landlords.
Collections - rent related (Is utility a deal breaker , what else is a deal breaker)
Income stability - Do you consider this ?
Do you consider other items in screening? Would you go back to the applicant asking to any information if they havent provided initially or make decisions based on provided once. .
Thank you.R
What Class if the neighborhood and your property?
Given you have set minimum of 620 score, leads me to guess you have Class B.
If so, no criminal in past 7 years is extreme (our opinion). Maybe go with 5.
What happens if bankruptcy & eviction tied together?
We always ask for minimum of 2-years residency history or minimum of last 2 landlords. Only exception is if same landlord for last 5 years. Reason: in our experience a landlord from more than 5 years ago won't remember the tenant or have records.
- Questions to ask landlords should be designed to catch fraud!
--- DO NOT ask them to just confirm info, "Can you confirm the tenant lived there for 12 months". Too easy for fraudster to just say "yes".
--- Ask open-ended questions for them to state: how long there, rent amount, how many occupants, pets, any unpaid utility bills or damages.The lower the credit score, the more important consistent work history is. So, we require 2-year work history and look for negative patterns. Job hopping isn't an issue unless very short work stays or large gaps between jobs.
- We also ask for last year's W-2(s) to confirm work history and income stability.Regarding credit, credit scores can be misleading!!!!
many tenants are opening Chime accounts - these play games with a "fake" self-loan to generate positive trade line info. We ignore them.
- We look for at least 2 tradelines, active within the last 12 months, that have at least 24 months of reporting. Otherwise, we focus on rental & work history.We also get a bank statement to minimize fake paystubs. Over 80% of employers now direct deposit into bank account. You can see last 4 digits of bank account on the paystub.
- You can also see a lot of other info on a bank statement. We recently got a bank statement that showed the tenant betting over $5k monthly online. Are they going to gamble their rent away?Logical Property Management4.9459 Reviews - Member since 2024 · 11 posts · 7 votes3mo
Does too many tradelines 20+ , credit card balances a red flag if all others listed above items are green . Is that even a criteria for a landlord to consider
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3mo
Quote from @Raveendra Singh:
Does too many tradelines 20+ , credit card balances a red flag if all others listed above items are green . Is that even a criteria for a landlord to consider
That depends on the ratio of available credit for those accounts vs. the account balances.
- 3moDenise SuppleeBusiness MemberRealtor · Willow Grove, PA · Member since 2017 · 991 posts · 646 votes
Hello @Raveendra Singh,
Proper tenant screening is so important. In my 40+ years of managing properties for both owners and myself, I've learned a lot. One of the biggest lessons is to verify everything.
For example, I always contact previous landlords and ask open-ended questions rather than yes-or-no questions. You'll often learn much more from how they answer than from the actual words they use.
Income stability is definitely important, but one thing I see many landlords overlook is the tenant's field of employment. Some industries are shrinking or becoming less stable, and that's worth considering when evaluating an applicant, not just what they're earning today.
Oh the issue of proper tenant screening. In my over 40 years of managing property for others and myself, I have learned alot! One of the first things, is I verify everything. For instance, I contact prior landlords and ask them open and general questions to see how they answer. As far as income stability, yes, this is important. But one issue I see many owner/investors forget is the field of employment. There are many areas that are lessening the need for workers. I wish you the best of success!!
Spark Rental Co-Investing Club580 Reviews - 3moRyan SpathBusiness MemberReal Estate Agent · Boise, ID · Member since 2017 · 569 posts · 378 votes
Quote from @Raveendra Singh:
Hi,
What is your criteria for tenant screening. My property is multifamily home and its in an average/good service class neighborhood. High rental demand. I am looking to firm up my documented criteria.
Credit of 620+ (unpaid rent, open judgements form previous landlords, bankruptcy in past 2 yrs ,)
3X income - If all other is good, with a cosigner may go up to 2.75
No Criminal record in past 7 yrs
No eviction in past 5 yrs
Rental History - Is 2 yrs min ? or should be more or less . Basic questions asked to previous landlords.
Collections - rent related (Is utility a deal breaker , what else is a deal breaker)
Income stability - Do you consider this ?
Do you consider other items in screening? Would you go back to the applicant asking to any information if they havent provided initially or make decisions based on provided once. .
Thank you.R
This is solid criteria, We like higher credit, 650+, Also the 3x income to rent can really help in making sure you are getting quality tenants. Once you see the persons credit, you can get a more clear picture of overall monthly debt obligations, this really helps us alot too. There has been a lot of mention of tenants influencing credit scores we have not seen this as of yet. The tighter your screen the easier it is to find the proper tenants for your property. It is similliar to having a buy box criteria when looking for a property, if something doesnt fit you move on to the next. Keep your criteria the same for tenants!
- Member since 2024 · 11 posts · 7 votes3mo
Thank you all for the valued responses.
As i am still developing my criteria, came across a real life example. The Primary Applicant passes all checks with flying colors, but co applicant has criminal charges (more than 12yrs ago, none after) but also has lower credit score than my initial established. They seem to have maintained a good stable job history and earning well above my requirements.
Do you require same level of screening thresholds for primary and secondary applicant. If not, how much leeway do you give, if any ?
Thank you- 3moDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
Quote from @Raveendra Singh:
Thank you all for the valued responses.
As i am still developing my criteria, came across a real life example. The Primary Applicant passes all checks with flying colors, but co applicant has criminal charges (more than 12yrs ago, none after) but also has lower credit score than my initial established. They seem to have maintained a good stable job history and earning well above my requirements.
Do you require same level of screening thresholds for primary and secondary applicant. If not, how much leeway do you give, if any ?
Thank you12 years is a long time, so why are you holding it against them?
If anything, just ask for a Letter of Explanation (LOX) and see what they say.
More concerned about the lower credit score, but often people that have been to prison don't use credit.
Logical Property Management4.9459 Reviews
- Investor · San Diego · Member since 2020 · 92 posts · 60 votes3mo
Most landlords treat income as a household test and everything else as an individual test. Income gets combined across applicants, since rent is paid from the household budget. Behavior-based criteria like eviction history, rental references, and criminal background apply to each adult separately, because one person's clean record doesn't offset another's.
For credit with two applicants, pick one rule and write it into your criteria: either every adult must meet your 620 floor, or the lower of the two scores is the deciding number. Averaging is hard to defend later because it can hide a genuinely weak file. Whichever you choose, apply it identically to every application going forward. Consistency is your best protection.
On the criminal piece, two things are worth checking before you decide. First, charges and convictions are different. HUD's 2016 guidance advises against denying based on arrests or charges that never led to a conviction, and blanket bans on any record at all can create fair housing exposure. Second, a growing number of states and cities limit lookback periods or require an individualized assessment, so a quick check with your local landlord association or the NOLO landlord guides for your state is worth the ten minutes.
If it was a conviction, most written policies weigh nature, severity, and recency. Something from 12+ years ago followed by a clean record, stable work, and household income well above your threshold is about as strong a case for individualized approval as you will see. If you approve, note in the file which written criteria you applied and why, then handle the next similar file the same way.
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