Your rental property is only as good as the tenant inside it. A great tenant pays on time, treats the property well, and renews their lease. A bad one can cost you $5,000–15,000 in eviction costs, lost rent, and repairs. Tenant screening is not optional — it’s the most important thing you do as a landlord.
The 5 Core Tenant Screening Criteria
1. Income Verification
The standard rule: a tenant’s gross monthly income should be at least 3x the monthly rent. Some investors use 2.5x in high-cost-of-living markets.
Acceptable proof of income: last 2–3 pay stubs, most recent tax return, bank statements (3 months), employer verification letter.
For self-employed applicants: bank statements, 2 years of tax returns, profit and loss statement.
2. Credit Check
A credit report tells you how applicants handle their financial obligations. Look for:
- Credit score: Minimum 620–650 is common for most landlords; 580–620 may be acceptable with higher deposit
- Collections: Medical collections are less concerning; multiple utility or rent-related collections are red flags
- Evictions: Any eviction on record is a major warning sign
- Debt-to-income ratio: High debt combined with lower income reduces ability to pay rent
3. Rental History
Always call prior landlords — not just the current one (who may be eager to get a problem tenant out). Ask:
- Did they pay on time?
- Did they give proper notice before leaving?
- Would you rent to them again?
- Did they leave the unit in good condition?
If the prior landlord is also the applicant’s friend or family member, treat it skeptically.
4. Employment and Stability
Steady, stable employment is a positive sign. Red flags: very recent job start, self-employment with no documentation, multiple job changes in the past year, or being unemployed and “about to start” a new job.
5. Background Check
Run a criminal background check in accordance with your local laws. Many states have restrictions on what you can consider. Focus on convictions that pose safety risks to other tenants or potential property damage — not arrests or minor/old convictions.
The Application Process: Best Practices
- Charge an application fee ($35–50) to cover the cost of screening and to filter out non-serious applicants
- Use a standardized written application form for all applicants
- Apply the same criteria consistently to all applicants to avoid fair housing violations
- Use a tenant screening service (RentSpree, TransUnion SmartMove, Cozy) to pull credit, criminal, and eviction reports
- Document your screening criteria and decision-making process in writing
Red Flags That Should Slow You Down
- Unwilling to provide identification or references
- Wants to pay several months upfront in cash (often means credit issues)
- Pressure to move in immediately
- Story changes or doesn’t match application
- Current landlord is difficult to reach
The Bottom Line
Screening tenants takes time upfront but saves enormous pain later. Set your criteria in advance, apply them consistently, and never let desperation override your standards. One month of vacancy is far cheaper than an eviction.