Every landlord should complete a thorough screening process when offering a rental to prospective tenants. Here are some tips on the information you should gather during the screening process, and which areas of inquiry you should stay clear of to ensure compliance with fair-housing laws.
Characteristics of the Ideal Tenant
The ideal tenant will have a steady work history with income approximating 2-3 times monthly rent. He or she should also have a good credit score in the range of 670-739. The tenant’s rental history is also important. Any eviction on the record is an obvious red flag. The prospective tenant should also be able to demonstrate a good working history with prior landlords, which can be confirmed through discussions with previous landlords. Positive personal references are also a plus.
Conduct a Thorough Background Check
The application and screening process should result in a comprehensive background and credit report. The rental application should include the prospective tenant’s email address, date of birth, social security number, residence history, work history, employment history and bank account numbers. To run a background check on a tenant you should hire a quality tenant screening service such as First Advantage or Smart Move. Quality tenant screening services can cost $50.00 or more, depending on the level of detail requested.
The process should include verification of the tenant’s income and credit and a thorough background check. The background check typically includes rental history, criminal records, and other public records. A credit check will tell you if the potential tenant has a history of late payments, any accounts that have gone to collection, if they’ve filed for bankruptcy, and their debt-income ratio.
You should also have discussions with previous landlords regarding whether the tenant has complied with his or her financial and legal obligations in previous landlord-tenant relationships. Find out why the applicant is looking for a new home. If it’s because of an eviction, from their previous rental, this is a major cause for concern.
Find Out About Pets
Naturally, it’s important to discover whether the prospective tenant has or plans to have pets. If so, make sure your pet policy is communicated in full up front, and the consequences of non-compliance.
Equal Treatment is a Must
It’s important to treat each tenant the same during this process. Ask the same questions for each prospective tenant after familiarizing yourself with the Fair Housing Act and other laws prohibiting discrimination against a variety of protected classes, including national origin, disabilities, children, gender, and religion to name a few. You can distinguish candidates using objective standards such as comparing income and rental history, without violating fair housing laws. In short, there cannot be any preferential treatment adversely impacting a protected class during your tenant screening process.
Please contact Lynx Legal with any questions regarding the above, and for all your eviction needs. We can be reached at 888-441-2355 or info@lynxlegal.com. Our experienced professionals are standing by to answer any questions you may have or take your order if you need to start a case.