tenant screening: the step-by-step process

1 – Establish Your Screening Criteria: Before you begin accepting applications make sure you have your screening criteria established. Things to consider including: credit, criminal and eviction records, employment and rental history. It is important to discuss your screening criteria with your applicants. Make sure your screening criteria are clear and concise. Most people will not want to spend the time and money submitting an application if they know up front they won’t qualify. This will save you both time and money. See RHA's Criteria for Tenant Selection.

2 – The Rental Application: Verify that your application is in compliance with state laws. Rental applications should be filled out by all applicants 18 years and older. RHA applications are reviewed annually by an attorney. If possible accept the rental application in person and always ask to see their driver’s license or some other form of government issued ID. See RHA Application for Tenancy.

3 – Reviewing the Rental Application: It is very important that you review the application with your prospective tenant to make sure there is a clear understanding of all of the information that you’re requesting. Make sure that the application has been filled out entirely and that all of the information is legible. Compare the information on the application to the applicants photo ID. Verify that the name, date of birth and address provided are correct. Lastly, ensure the prospective tenant has given you permission to run a consumer report. For RHA applications this means they signed both sides of the form.

4 – Screening the Applicant: Protect yourself from discrimination claims – apply the same screening criteria to every applicant. Make sure you request the same type of report for each applicant. RHA recommends checking credit, criminal and eviction records as well as verifying employment status, income and rental history.

5 – Receiving Results and Making Your Decision: After you have received the results of your consumer report you will need to look at your criteria and decide whether or not this applicant is a qualified tenant for your rental. If you decide to reject an applicant or take other adverse action such as charging an increased deposit or requiring a cosigner you must provide the applicant with written notice and the reason for your decision. RHA provides the Adverse Action Notice specifically for this purpose. 

6 – Record Retention: RHA recommends you note your decision regarding tenancy on the application and shred the consumer report immediately after a decision is made. You must keep the application as proof you had authorization to run a consumer report for 5 years or the length of the applicant’s tenancy whichever is greater.  The application must be stored in a secure location (locked filing cabinent) that does not allow unauthorized access in order to prevent identity theft.