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Choosing a tenant to fill a rental vacancy is a critical decision for any landlord. Those landlords that “choose well” often sleep better at night than those landlords who are forced to “choose often” because the first tenant did not work out. As those landlords that choose over and over again find out there are no do-overs, only start-overs, a time consuming and expensive process.
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For many reasons, not the least of which is to reduce income loss, a landlord needs a reliable, consistent system of attracting prospective tenants, adequately screening applicants, properly selecting a qualified tenant, and retaining good tenants. For those that choose often, it may seem like a case of easier said than done. However, those who choose well reply that it may not always be easy, but it is simple.
Federal, state, and local anti-discrimination laws are very specific as to what you can do in screening applicants. You are free to choose your next tenant from prospective applicants as long as you base your selection on legitimate business criteria.
For example you can reject applicants with insufficient income to meet rent obligations, have credit histories that show serious delinquencies or collections, are known to have caused property damage at a prior rental address, or cannot meet requirements for security deposits or fees.
Federal Fair Housing laws prohibit discrimination against the protected classes of race, religion, national origin, sex, color, familial status, or disability. State and local fair housing laws may have additional protected classes and thus be more stringent than federal law.
Initial screenings(identity, rental history, employment/income) being done, you’ll want to know a little more about the applicant’s background. This type of screening can include credit history, criminal conviction records search, public records search, eviction records search, and reference checking.
The ease and availability of information that can be provided by a screening service is a real benefit to busy landlords. Also, the quicker applicants are qualified per your standards, the sooner the vacancy can be filled. However, being in too much a hurry to install a tenant(without being satisfied that this is indeed the tenant you want) can end up costing you more than an empty unit.