Property management & leasing
Tenant Screening: Definition & Example
What Is Tenant Screening?
Tenant screening is the process landlords use to evaluate rental applicants, typically by reviewing identity, income, rental history, credit, and background information against written criteria.
What does tenant screening mean?
A typical screening process confirms the applicant’s identity, reviews income against the rent, checks rental history with past landlords, and, with the applicant’s authorization, reviews credit and background records through a tenant screening company.
Screening must be consistent. The Fair Housing Act prohibits discrimination based on protected characteristics, and many states and cities add protections such as source of income. Applying the same written criteria to every applicant is the best practice.
When a landlord uses a consumer report from a screening company and takes adverse action, such as denying the application or requiring a higher deposit, the Fair Credit Reporting Act requires an adverse action notice.
Tenant screening example
A property manager’s criteria require income of three times the rent, no evictions in the past five years, and positive references from the last two landlords. For each applicant, the manager reviews proof of income, calls prior landlords, and orders a screening report the applicant has authorized, then documents the decision in the file.
Related terms
- Rental CriteriaRental criteria are the written standards a landlord uses to evaluate every applicant, such as minimum income, rental history, credit, and background requirements.
- Tenant Screening ReportA tenant screening report is a consumer report a landlord orders from a screening company, usually combining credit, eviction, and criminal record information about a rental applicant.
- Proof of IncomeProof of income is documentation showing how much money a person earns, such as pay stubs, tax returns, bank statements, an employer letter, or a benefits statement.
- Rental HistoryRental history is a record of where an applicant has rented in the past, including how long they stayed, whether they paid on time, and how they left each property.
- Adverse Action NoticeAn adverse action notice is a disclosure required by the Fair Credit Reporting Act when a landlord, lender, or employer takes a negative action based in whole or in part on a consumer report.
- Fair Housing ActThe Fair Housing Act is a federal law that prohibits discrimination in renting, selling, and financing housing based on race, color, national origin, religion, sex, familial status, or disability.
Tenant screening FAQ
- What do landlords check when screening tenants?
- Commonly identity, income, rental history and references, credit history, and criminal and eviction records, depending on the landlord’s criteria and local law.
- Is tenant screening legal?
- Yes, when it is done consistently and complies with the Fair Housing Act, the FCRA, and any state or local rules, such as limits on criminal history checks or protections for source of income.
