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How to screen tenants.

A careful, consistent screening process is the cheapest insurance a small landlord can buy. Here is a step-by-step approach that stays inside federal rules.

Updated September 26, 2026 · By Javier Castellanos Serrano, RentCaliber

Why screening matters to your numbers

Every rental analysis assumes rent arrives on time. A tenant who pays late, damages the unit or has to be evicted can erase a year of cash flow: lost rent, legal costs, repairs and another vacancy while you find the next tenant. Try raising the vacancy rate and maintenance percentage in the rental property calculator to see how quickly a thin deal turns negative.

1. Write your criteria before you advertise

Decide what you require, write it down and apply exactly the same standard to every applicant. Consistency protects you against discrimination claims and makes decisions faster. Typical criteria include:

  • Income. A common rule of thumb is gross monthly income of about three times the rent, verified with pay stubs, an offer letter, tax returns or bank statements.
  • Rental history. Positive references from previous landlords and no unpaid balances.
  • Credit. A minimum score or, better, a review of payment history and collections related to housing.
  • Eviction and criminal history. Only where permitted: several states and cities limit how far back you can look or what you can consider.
  • Occupancy and pets. Maximum occupants per unit and your pet policy (assistance animals are not pets under fair housing rules).

2. Follow fair housing rules from the first ad

The federal Fair Housing Act prohibits discrimination because of race, color, religion, sex, national origin, familial status or disability. Many states and cities add more protected characteristics, such as source of income, age, marital status, sexual orientation or gender identity. These rules apply to your listing, your questions, your screening criteria and your final decision.

Avoid questions about protected characteristics, describe the property rather than the ideal tenant in ads, and respond to reasonable accommodation requests from applicants with disabilities.

3. Run the checks in a consistent order

  1. Application. Collect the same information from every adult who will live in the unit, with written consent to run background and credit checks.
  2. Identity. Confirm the applicant is who they say they are.
  3. Screening report. Credit, eviction and, where allowed, criminal records from a consumer reporting agency. Many online platforms let applicants authorize and pay for their own report, so you never handle Social Security numbers.
  4. Income verification. Compare documents with the stated income; call the employer if something does not match.
  5. Landlord references. Ask previous landlords about payment, notice and condition at move-out. The current landlord may be eager to see a problem tenant leave, so a prior landlord is often more informative.

4. Meet your FCRA obligations

When you use a tenant screening report from a consumer reporting agency, the Fair Credit Reporting Act applies to you. According to the Federal Trade Commission:

  • You may obtain the report only for a housing decision, and you certify that purpose to the agency.
  • If you take adverse action based even partly on the report, you must give the applicant an adverse action notice. That includes denying the application and also approving with conditions, such as requiring a co-signer, a larger deposit or higher rent than other applicants.
  • The notice must identify the agency that supplied the report, state that the agency did not make the decision, and explain the applicant's right to dispute inaccurate information and get a free copy of the report.
  • If a credit score influenced the decision, additional score disclosures apply.
  • Once you no longer need the report, dispose of it securely, for example by shredding paper copies and deleting files.

5. Decide, document and keep records

Record which criteria each applicant met, why you approved or declined, and when you sent any notices. If several applicants qualify, a simple rule such as first complete qualified application is easy to defend.

Application fees and local rules

Some states and cities cap application fees, require refunds when no screening is run, or regulate when you can check criminal history. Check your state landlord-tenant rules before you set a fee.

Screening protects the rent. Check that the rent covers the deal.

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Sources

General information for U.S. landlords, not legal, tax or insurance advice. Rules vary by state and city; confirm requirements with a local attorney, licensed agent or tax professional.