Screening tenants consistently, without guesswork

Most small landlords do not set out to screen unfairly. The trouble usually starts with improvisation: one applicant gets a friendly call and a second chance, another gets a quick no because something felt off. Over time those small differences add up to a pattern you never chose, and a decision you cannot explain.

The fix is unglamorous and it works. Decide what you require before you see anyone's name, write it down, and apply it the same way to every application.

Write your criteria before you list

Your written criteria are the rules of the game. They should be specific enough that two different people applying them to the same application would reach the same answer. A useful set usually covers:

• Income. How you measure it, what documents you accept, and the ratio you require.
• Rental history. What you check, how far back, and what would disqualify an application.
• Credit or consumer reports, if you use them, and exactly how they factor in.
• Occupancy. The number of people the home can hold, based on the home and local codes, not on who the people are.
• Pets and animals, keeping in mind that assistance animals for people with disabilities are a reasonable accommodation question, not a pet question.
• Fees. What the application fee is and what it pays for.

Share the criteria with applicants up front, in the listing or before they apply. People can decide whether to apply, and you avoid collecting fees from someone who never had a chance.

Income ratio is your choice, so choose it on purpose

Many landlords require monthly income of some multiple of the rent. No law sets that number for you; it is a business decision. Pick a ratio you can defend, decide which income counts (wages, benefits, support, savings), and apply it the same way to everyone. If you are curious how a ratio looks from the renter's side, our rent calculator shows the common rules of thumb.

Use the same steps, in the same order

Consistency is easier when the process is a checklist rather than a judgment call.

1. 1Confirm the application is complete.
2. 2Verify identity and income against the documents your criteria name.
3. 3Check rental history the same way for everyone.
4. 4If you use a consumer report, get the applicant's authorization and run it for every applicant you are considering, not just some.
5. 5Compare the results against your written criteria.
6. 6Decide, and write down why.

Process applications in the order they arrive, and decide what you will do when two qualified applications come in for the same home. First qualified, first offered is simple and easy to explain.

Document every decision

For each application, keep a short note: which criteria were met, which were not, and the decision. Keep the documents you relied on. If anyone ever questions a decision, including you a year later, the note answers the question in a sentence.

If a consumer report is part of the decision

Under the Fair Credit Reporting Act, a landlord may get a consumer report on a rental applicant, and the Federal Trade Commission notes that written permission from the applicant establishes a permissible purpose. The FTC also explains what happens after.

If you take an adverse action based in whole or in part on information in a consumer report, you must give the applicant notice. According to the FTC, adverse action includes denying the application, requiring a co-signer, or requiring a deposit that would not be required of another applicant, and the duty applies even if the report played only a small part. The notice must include:

• the name, address and phone number of the consumer reporting agency that supplied the report
• a statement that the agency did not make the decision and cannot give the specific reasons for it
• the applicant's right to dispute the accuracy or completeness of the report, and to a free report from the agency if they ask within 60 days

If you used a credit score, additional disclosures about the score apply. The FTC says oral notice is allowed but recommends written notice, because it is your proof that you complied.

The FTC also reminds landlords that other laws apply alongside the FCRA, and that a blanket policy of refusing anyone with a criminal record may conflict with the Fair Housing Act. Our post on fair housing basics covers that side.

How this looks on Holuway

On Holuway, applications arrive complete and in the same format, so you can compare applicants side by side, including income to rent. You can charge an application fee that is paid online and message applicants in one thread from your applications.

You make the decision. Holuway never approves or declines anyone for you. When you approve or decline, the applicant is emailed, and you can add a short note to a decline. That email is not an adverse action notice: if a consumer report played any part in a decline or a tougher condition, send the notice the FCRA requires as well.

The short version

Write your criteria, publish them, apply them in the same order to everyone, and keep a note of every decision. It takes an afternoon to set up and saves a great deal of guessing later. If you are setting up your first rental, the property management overview shows the rest of the process.

This article is general information, not legal advice. Screening rules also come from state and local law and change over time. For questions about a specific situation, talk to an attorney.