Landlords Beware! 3 Tenant Screening Checks You Can't Skip 

may 5, 2024

by: judy & ernesto andujar

Tenant screening is a critical step for landlords to ensure they select responsible, financially stable tenants who will maintain the property and pay rent on time. A thorough tenant screening process helps avoid potential issues such as unpaid rent, property damage, or fraudulent applications. Here are three essential screening checks that every landlord should conduct:

1. Verifying Property Debt: Unpaid Rent and Damages

One of the first steps in tenant screening is verifying property debt. This check is designed to uncover any history of unpaid rent, property damages, or other financial obligations that a prospective tenant may owe to previous landlords. While such issues may not always appear on a standard credit report, it’s crucial to conduct a deep dive into the applicant’s rental history.
Landlords should ask for documentation of the tenant's rental history, and consider using third-party services to check for any missed rent payments or damage-related charges. This process helps landlords ensure they are renting to a reliable tenant with a clean rental track record.

2. Landlord Verification: Ensuring Rental History Legitimacy

Verifying the legitimacy of an applicant's previous landlord is another important screening step. Fraudulent rental references can easily be fabricated, and landlords need to ensure that the applicant’s stated rental history is authentic.
Landlord verification involves contacting the tenant's previous landlords through professional email addresses or official contact information, such as the property management company’s business number. This step ensures that the references provided are valid and reliable. Additionally, checking tax records can confirm the ownership of the property, further verifying the legitimacy of the landlord and the applicant’s rental history.

3. Income Verification: Ensuring Financial Stability

Lastly, income verification is essential to determine whether a prospective tenant has the financial means to afford the rent. This step typically requires multiple forms of proof, such as recent pay stubs, tax returns, and employment verification through the tenant’s HR department. Gathering these documents ensures accuracy in the verification process and provides a more comprehensive view of the tenant's financial stability.
Utilizing specialized software or services like Experian for income verification can streamline this process. These services help verify income in a manner similar to how mortgage lenders perform pre-approvals. Transparency with applicants about the need for income verification helps build trust and prevents surprises during the application process.
Key Takeaways:
Verifying property debt  ensures tenants have no history of unpaid rent or property damage.
Landlord verification protects against fraudulent rental claims and confirms an applicant’s rental history.
Income verification helps landlords assess the tenant's financial stability and ability to pay rent consistently.
By following these three essential tenant screening checks—property debt verification, landlord verification, and income confirmation—landlords can make informed decisions and avoid potential risks in their rental properties. These steps not only protect the landlord’s investment but also contribute to a smoother and more successful rental experience for both parties.