<p dir="ltr"><img alt="Couple on couch unpacking boxes" src="/images/blog/how%20to%20set%20up%20tenant%20screening%20criteriaBlog%20Images%20(1200%20%C3%97%20630%20px).png" style="width: 1200px; height: 630px;" /></p> <p dir="ltr">Every property manager or property owner should focus on getting tenants who will pay their rent on time. It would be best to find suitable tenants through legal channels, whether you are a rental manager or a property owner.&nbsp;</p> <p dir="ltr">It is essential to understand and comply with state and local housing laws to succeed in property management. Thus, setting up tenant screening criteria is vital in identifying the best candidates. Furthermore, tenant screening criteria help you avoid discrimination lawsuits.&nbsp;</p> <p dir="ltr">&nbsp;</p> <h2 dir="ltr">Creating the Perfect Screening Criteria&nbsp;</h2> <p dir="ltr">If you are a property manager or a property owner, you need to create a tenant screening criteria, not just to identify great clients, but also to establish whether potential clients meet your minimum rental requirements. It minimizes the possibility of a discrimination claim since it helps property managers or landlords avoid their personal subjective opinions. Here is how you can set up the perfect tenant screening criteria.&nbsp;</p> <p dir="ltr">&nbsp;</p> <h3 dir="ltr">&nbsp;Think About Your Primary Goal&nbsp;</h3> <p dir="ltr">To set up an objective tenant screening criteria, you must first understand your primary goals. Your primary goals should include-&nbsp;</p> <ul dir="ltr"> <li role="presentation">Compliance with fair housing regulations, which is vital in helping you avoid discrimination claims</li> <li role="presentation">Ability to handpick the best tenants- the tenants should pay their rent on time and consistently. They should also follow rental and lease terms.&nbsp;</li> </ul> <p>&nbsp;</p> <h3 dir="ltr">&nbsp;Identify the Specific Factors That Will Enable You Accomplish Your Goals</h3> <p dir="ltr">It would be best to look at some specific factors to succeed in creating your tenant screening criteria. For instance, you should consider the Fair Housing Bill. There are specific rules under the Fair Housing Act that outline how property owners should provide fair housing opportunities to rental applicants.&nbsp;</p> <p dir="ltr">The bill prohibits discrimination based on gender, class, race, or sexual orientation. Another critical factor to consider includes the landlord-tenants laws. Under these laws, property managers and property owners have the responsibility of ensuring that tenants provide details on their income, employment, and proof of identity.&nbsp;</p> <p dir="ltr">&nbsp;</p> <h3 dir="ltr">Find the Best Tenants&nbsp;</h3> <p dir="ltr">Find a way of finding out whether a tenant is a suitable applicant for your rental property. Of course, you need to follow legal channels while identifying the best client. To find out the suitability of a tenant, for instance, you can call their previous landlords and inquire about their past rental history. You may also seek out a <a href="https://www.rentspree.com/best-tenant-screening-services-2020/">tenant screening service</a> that can aid your search. Here are some objective and legal ways to identify whether a tenant is worth renting your property-</p> <ul> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Determine if the applicant&rsquo;s monthly income is three times greater than the monthly rent&nbsp;</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Consider the applicant&#39;s income and monthly debt ratio to ensure they will not strain to meet their rental payments.&nbsp;</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Use the applicant&rsquo;s credit report to assess whether they are financially responsible.&nbsp;</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Assess whether the applicant has a track record of paying their rent payments on time</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Find out if the applicant has any record of evictions as a result of defaulting on their rent payments&nbsp;</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Assess whether the applicant has a stable source of income&nbsp;</p> </li> </ul> <p dir="ltr" role="presentation">&nbsp;</p> <h3 dir="ltr">Check Whether Applicants Can Adhere To Rental Terms and Conditions&nbsp;</h3> <p dir="ltr">This step is crucial to setting up successful tenant screening criteria. Evaluate whether all applicants are capable of adhering to rental terms and conditions. Your evaluation shouldn&#39;t be based on your personal opinion.&nbsp; Below are some objective and legal ways to assess an applicant&rsquo;s tendency to adhere to rental terms and conditions-</p> <ul> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Check whether the applicant has any record of criminal convictions due to past crimes&nbsp;</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Confirm with previous landlords whether the prospective tenant has a record of noise complaints&nbsp;</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Check whether the applicant has a record of lease violations&nbsp;</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Ensure the applicant has no record of eviction as a result of lease violations&nbsp;</p> </li> <li aria-level="1" dir="ltr"> <p dir="ltr" role="presentation">Ensure the applicant doesn&rsquo;t falsify application information&nbsp;</p> </li> </ul> <p dir="ltr" role="presentation">&nbsp;</p> <h3 dir="ltr">Put It Together</h3> <p dir="ltr">Put your tenant screening criteria together before you start the process of accepting rental applications from prospective tenants. Take your review to an attorney. The attorney should be knowledgeable about real estate laws, especially landlord-tenant laws. This step is essential since it ensures your tenant screening criteria will comply with federal, state, and local housing regulations. Upon review by an attorney, implement your criteria gradually and consistently to every applicant. Stick to your tenant screening criteria to the letter. Avoid making any exceptions. More importantly, use plain and simple language that is understandable by everyone. Avoid confusing legal terms and jargon. Plain and straightforward language ensures the applicant will understand every part of the tenant screening criteria.</p> <p dir="ltr"><strong>Bottom line&nbsp;</strong></p> <p dir="ltr">A tenant screening criteria is a crucial part for every property manager and landlord. Ensure your criteria reflect both your interests and those of your prospective tenants.&nbsp;</p> <p>&nbsp;</p>