When listing your home for rent, there’s plenty to do like creating an application, finding tenants, and signing a lease agreement. One thing you’ll need to learn about is how to screen tenants during the application process.
In this Redfin article, we’ll give you the step-by-step guide to screening renters, from setting application requirements to pre-screening tenants and verifying their information. Whether you’re renting your home in Austin or renting your condo in Chicago, read on to find out how to screen tenants.
1. Understand Fair Housing laws
Before screening any potential tenants, you’ll need to understand Fair Housing laws. While you can choose the renters that fit your requirements, you still need to follow local, state, and federal laws. Under the Fair Housing Act, you can’t reject a tenant based on race, color, national origin, religion, sex, familial status, or disability.
Some states have additional protected classes and laws preventing housing discrimination. Familiarize yourself with local and state laws to make sure you’re not inadvertently rejecting a tenant based on protected classes.
2. Set application requirements
By setting application requirements, you can better objectively determine the best tenant for your property. Here are some things to consider when setting up your qualifications.
Income
It’s common to set income requirements for your property to ensure that tenants are capable of paying rent on time. Many landlords use a rent-to-income ratio to determine income requirements for their applicants. You want to make sure that any prospective tenants are going to be able to cover rent costs without stretching their budget too much. Choosing an income requirement that’s disproportionate to the area you’re renting in may cause your property to stay vacant longer than you’d like.
Credit history and score
Many landlords require a higher credit score, often above 670. This means you’re often…