What does your tenant screening process look like?
Lender · NJ · Member since 2025 · 50 posts · 23 votes
What does your tenant screening process look like?
Most Popular Reply
Investor · San Diego · Member since 2020 · 92 posts · 60 votes
4w@Ali Najjar the thing that made my screening consistent was writing the criteria down before a single application came in, then running each file as pass/fail against that sheet instead of a vibe check.
What's on the sheet:
Income: verifiable and documented, not a screenshot. Two most recent pay stubs plus two months of bank statements, and I check that the net on the stub actually shows up as a deposit on the statement. Self employed gets the prior year return plus statements. For rent by the room I underwrite each person against their own room rent, not a household total.
Credit: I read the report, not the score. The score hides the two things I care about, which are open collections from prior landlords or utilities, and whether the payment history is thin or manufactured.
Rental history: two prior landlords, and I make a point of calling the one before the current one. The current landlord may want them gone. I find the number myself through county records rather than calling whatever is written on the application.
Background and eviction: run it, but read the disposition and the date. A filing that was dismissed or settled is not a judgment, and old is not recent.
On the part you actually asked about, the strong-in-one-place, weak-in-another file. I do not average it out. I decide in advance which criteria are absolute and which have a defined remedy. Income and eviction judgments are absolute for me. Thin credit or short tenure at a new job has a remedy, usually a larger deposit or a cosigner where local law allows it, since deposit caps and cosigner rules vary quite a bit by state. Writing that down ahead of time is also what keeps you defensible, because you are applying one standard to everyone instead of making an exception you would later have to explain.
I keep the same bar across properties. What I adjust is the rent and the marketing, not the criteria.
Which of those is causing most of your declines right now, income documentation or rental history?
6 Replies
- Investor · San Diego · Member since 2020 · 92 posts · 60 votes4w
@Ali Najjar the thing that made my screening consistent was writing the criteria down before a single application came in, then running each file as pass/fail against that sheet instead of a vibe check.
What's on the sheet:
Income: verifiable and documented, not a screenshot. Two most recent pay stubs plus two months of bank statements, and I check that the net on the stub actually shows up as a deposit on the statement. Self employed gets the prior year return plus statements. For rent by the room I underwrite each person against their own room rent, not a household total.
Credit: I read the report, not the score. The score hides the two things I care about, which are open collections from prior landlords or utilities, and whether the payment history is thin or manufactured.
Rental history: two prior landlords, and I make a point of calling the one before the current one. The current landlord may want them gone. I find the number myself through county records rather than calling whatever is written on the application.
Background and eviction: run it, but read the disposition and the date. A filing that was dismissed or settled is not a judgment, and old is not recent.
On the part you actually asked about, the strong-in-one-place, weak-in-another file. I do not average it out. I decide in advance which criteria are absolute and which have a defined remedy. Income and eviction judgments are absolute for me. Thin credit or short tenure at a new job has a remedy, usually a larger deposit or a cosigner where local law allows it, since deposit caps and cosigner rules vary quite a bit by state. Writing that down ahead of time is also what keeps you defensible, because you are applying one standard to everyone instead of making an exception you would later have to explain.
I keep the same bar across properties. What I adjust is the rent and the marketing, not the criteria.
Which of those is causing most of your declines right now, income documentation or rental history?
- 3wDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
From our website:
A bad tenant can lead to thousands of dollars of losses via unpaid rents, legal fees and property damages. We’re one of the few property managers that require W-2’s and a bank statement and we go way beyond the traditional, “income must = 3x rent” qualifier.
Below is more information about what our Applications Department does to screen applicants and find the best tenants possible for your property.
Required Info
We require the following from each applicant over the age of 18, that is not a dependent of another applicant (as evidenced on a tax return):
Copy of acceptable state picture ID
Recent YTD paystub
Recent W-2
Recent Bank Statement, all pages, no info blacked out
Recent tax return if self-employed
Applicants are often slow about turning this information in, asking us why we need it and then taking several days to submit. Then they complain that our process takes too long!
Credit History
Many companies use credit summaries, but we find these rarely tell the whole credit story. So, we obtain a full credit report and review collections, chargeoffs, age of credit accounts, active accounts, etc. to build an overall credit evaluation.
FICO Score
Pct of Population
Default Probability
800 or more
13.00%
1.00%
750-799
27.00%
1.00%
700-749
18.00%
4.40%
650-699
15.00%
8.90%
600-649
12.00%
15.80%
550-599
8.00%
22.50%
500-549
5.00%
28.40%
Less than 499
2.00%
41.00%
Public Records
We also obtain data from national databases about evictions, convictions, and sex-offender histories. These all require applicants to submit an acceptable Letter of Explanation addressing each specific issue and occurrence.
Rental History
Because a current landlord may say anything to get rid of a bad tenant out of desperation, we also require information for the previous landlord of all applicants…
Analyze Income
Many landlords require a month of paystubs from applicants and just use these to calculate a monthly qualifying income…
Employment Stability
Unless an applicant has exceptional credit, we strive to determine their stability of employment…
Assets
We are one of the few management companies that requires a bank statement as part of our application process…
Letter Of Explanation
Any time there are credit issues or we discover an inconsistency, we require a written letter of explanation (LOX)…
Underwriting
Traditionally, landlords have only looked at the income of applicants…
Approval
Once an applicant is approved, we require a nonrefundable Holding Fee to make sure they are serious…
Logical Property Management4.9450 Reviews
- 4wJaron WallingPro MemberRental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
@Ali Najjar If you're new to REI and rentals I encourage you to use the magnifying search icon to learn about PM and screening. The forums are full of useful information.
I built a detailed one-page document that's my "SOW" for screening tenants. I took advice from the forums and built it up. It's my playbook to help me or someone else screen tenants. We rarely adjust our requirements for our rentals. Communication stays the same. We also no longer use FB market place for our listings. I got numerous warnings and complaints from prior applicates about it. People looking for rentals trust Zillow and Redfin. FB market is full of scammers.
I agree with @Benjamin Sussman and by the time you're looking at the applicants report they already paid for the background check and have skin in the game. Tire kickers will use the $35 as an excuse but in reality they weren't going to meet your requirments.
As far as the individual requirements (income, credit, eviction history, references, etc.) that's on you to learn and research. You have to figure out what works for the location, tenant pool, and type of property. It's a personalized process and you treat everyone the same.
Biggest piece of advice is being patient, hold cash reserves, and treat the communication like a business. Learn about red flags. When you see one you're better off passing on the applicant right then, and waiting for the right person. If someone is dragging out the process, shows up 25 mins late to a showing, or isn't texting/calling in a timely fashion, just move on.
- 4wJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votesGreat question, Ali! I’ve found that having the same written screening criteria upfront makes the process much easier and more consistent. I typically look at income and employment verification, credit history, rental history, prior evictions, and the background check together rather than relying on just one score. If something raises a question, I’ll verify the details instead of automatically assuming it’s a deal breaker, but I’m careful to apply the same standards to every applicant and stay consistent with fair housing requirements. Rental history and whether someone has consistently paid housing expenses on time can tell you a lot too. A solid screening process upfront can save a ton of headaches later.
Quote from @Ali Najjar:
For those managing rentals themselves, what does your tenant screening process look like from application to approval?
I’m curious how people handle income verification, credit, rental history, references, and background checks, especially when one part of the application looks strong but another raises a question.
Do you have a specific set of requirements you use for every property, or do you adjust them depending on the market and type of rental?
Interested in hearing what has actually worked for people managing their own properties.
Jimmy Lieu, Red 1 Realty4.9119 Reviews - Chicago, IL · Member since 2026 · 9 posts · 3 votes1w
One thing I’ve seen help smaller landlords is separating the screening standard from the options available when someone doesn’t meet every requirement. The standard should stay written and consistent, but that doesn’t always mean the only outcomes are approve or decline.
Depending on local rules and the specific concern, an owner might consider additional documentation, a qualified guarantor, increased protection where permitted, or simply waiting for a better-qualified applicant. The important part is deciding those options in advance and applying them consistently—not improvising based on the applicant.
I’d also look beyond the score itself. Income stability, rental payment history and the reason behind a thinner file can provide important context.
- 5dKyle MccawBusiness MemberProperty Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
@Ali Najjar We manage over 1,200 homes, and tenant fraud has changed how I look at screening. Written, consistently applied criteria are important, but just as important today is verifying that the information you’re evaluating is actually real.
Income is a big one. We lean heavily on tools like Plaid and VeriFast that verify income from the source rather than trusting uploaded paystubs or bank statements, which are incredibly easy to fake now.
I put less weight on landlord references than I used to. Fake references are common, and many legitimate landlords are reluctant to say anything negative because of liability concerns. I’d rather look at objective data—credit history, collections, judgments, evictions, and verified income.
We send unpaid balances from former tenants to collections even when we don’t expect to recover much. Part of the value is creating a record that may help warn the next landlord. Good tenant screening today is really about verifying data rather than trusting documents and references.
McCaw Property Management4.4900 Reviews
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