How to Screen Tenants the Right Way (and Stay Legal)

A bad tenant can cost a small landlord months of lost rent plus repair bills. A consistent, documented screening process is the cheapest protection you have, and it also protects you from discrimination claims. Here is a process you can use for every applicant.

Step 1: Write your criteria before you advertise

Decide your standards in writing first, then apply them to everyone. Typical criteria include:

• Income: many landlords require gross monthly income of about three times the rent. Pick a number and use it for every applicant.
• Credit: a minimum score or a “no recent collections or evictions” rule.
• Rental history: verifiable on-time payment and no unresolved damage claims.
• Occupancy: a maximum number of occupants, consistent with local law.
• Pets and smoking: your policy, noting that a request for an assistance animal is a disability accommodation request under fair housing law, not an ordinary pet request. See our pet policy guide.

Step 2: Use a written rental application

Collect full legal name, current and past addresses, employer and income, landlord references, and consent to run screening reports. Charge only an application fee that your state allows, and check whether your state caps it.

Step 3: Run the reports

Use a reputable screening service that provides:

1. A credit report
2. Eviction history
3. A criminal background check, where lawful and applied consistently

Some states and cities restrict how you can use criminal history, and the FTC cautions that a blanket policy of rejecting anyone with a criminal record may violate the Fair Housing Act. Check local rules before you set a policy. Our guide to background and credit checks covers this in more depth.

Step 4: Verify income and call references

Ask for recent pay stubs or an offer letter, and call the current and previous landlords. Ask direct questions: Did they pay on time? Any lease violations? Would you rent to them again? The current landlord may have a reason to be less than candid, so the previous one is often more useful.

Step 5: Follow the fair housing rules

The federal Fair Housing Act prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability. Many states and cities add more protected classes, such as source of income or sexual orientation. In practice this means:

• Apply the same criteria, in the same order, to every applicant.
• Do not steer applicants or ask questions about protected characteristics.
• Make reasonable accommodations for tenants with disabilities.
• Keep written records of why you accepted or denied each applicant.

The U.S. Department of Housing and Urban Development (HUD) explains landlord obligations and how to report discrimination on its fair housing rights and obligations page.

Step 6: Send an adverse action notice when required

If you deny an applicant, require a co-signer, or ask for a higher deposit or rent because of information in a consumer report, even in part, the Fair Credit Reporting Act requires you to tell them. The notice must include the name, address, and phone number of the reporting agency, a statement that the agency did not make the decision and cannot explain it, and the applicant’s right to dispute inaccurate information and to get a free copy of the report if they ask within 60 days. If a credit score played a role, you must also disclose the score and the key factors that hurt it. Written notice is the safest practice, and most screening services provide a template. See the FTC’s guide, 15 U.S.C. 1681m (FCRA adverse action notices).

Common screening mistakes

• Making exceptions for people you like
• Skipping the previous-landlord call
• Accepting a screenshot of a credit report instead of running your own
• Not documenting the reason for a denial
• Holding a unit for an applicant before checks are complete

A simple scoring sheet

Screening well does not guarantee a perfect tenant, but it removes most of the avoidable risk. Pair it with a solid lease and a documented move-in inspection.

Related guides

• How to Show a Rental Property: A Safe, Efficient Walkthrough
• Adverse Action Notices: When Landlords Must Send One
• The Rental Application Process: From Inquiry to Signed Lease