Finding a great tenant is one of the most important things you’ll do as a landlord. Get it right, and you can enjoy years of steady rent, minimal drama, and a well-maintained property. Getting it wrong or worse, running afoul of fair housing laws, and you’re looking at vacancies, potential legal trouble, and a lot of headaches.
The good news? Screening tenants thoroughly and legally isn’t complicated. It just takes a clear process, consistent standards, and knowing where the legal lines are drawn. Let’s walk through all of it.
What Is Fair Housing — and Why Does It Matter?
The Fair Housing Act is a federal law that prohibits discrimination in housing based on certain protected characteristics. When you’re advertising a rental, accepting applications, or deciding who to approve, you must apply your standards equally to every applicant, with no exceptions.
The seven federally protected classes are:
- Race
- Color
- National origin
- Religion
- Sex
- Familial status (having children under 18, or being pregnant)
- Disability
Many states and cities add additional protections beyond the federal baseline. Common additions include source of income (like housing vouchers), marital status, sexual orientation, gender identity, age, and veteran status. It’s worth checking your local laws; the rules in California or New York City, for example, are significantly broader than federal requirements.
Violating fair housing law, even accidentally, can result in complaints, investigations, and significant fines. The best protection is a well-documented, consistently applied screening process.
Step-by-Step: How to Screen a Tenant Properly
Step 1: Set Your Written Screening Criteria Before You Advertise
Before you market the unit, write down your rental criteria. This is your single most important fair housing protection. Written criteria that you apply to every applicant make it clear that your decisions are based on objective factors, not subjective impressions.
Your criteria should address:
- Minimum income requirement (e.g., gross monthly income of 2.5–3x monthly rent)
- Credit score minimum (e.g., 620 or above)
- Rental history (e.g., no evictions in the past 5 years)
- Employment status (employed, self-employed, or verifiable income source)
- Criminal background (if applicable, see note below on this)
Keep a copy of your criteria on file. Some landlords give a copy to every applicant upfront so there are no surprises.
A note on criminal history: The Department of Housing and Urban Development (HUD) has issued guidance cautioning against blanket bans on renting to anyone with a criminal record, as this can have a disparate impact on protected classes. If you screen for criminal background, make it individualized — consider the nature of the offense, how long ago it occurred, and evidence of rehabilitation.
Step 2: Use a Consistent Rental Application
Each applicant for the same unit should complete the same application. It should collect:
- Full legal name and contact information
- Current and previous addresses (with landlord references)
- Employment and income information
- Authorization to run a credit and background check
- Signature and date
Don’t ask for information that could reveal protected class status on the application itself — things like birthdate, marital status, or number of children are unnecessary and can create problems.
Step 3: Run a Credit and Background Check
Once you have a signed application and authorization, pull a credit report and background check through a reputable tenant screening service. Look for:
- Payment history: Are there late payments, collections, or judgments?
- Outstanding debt: Is the applicant overextended financially?
- Eviction history: Most screening services flag prior evictions
- Criminal history: Apply whatever criteria you’ve established consistently
Always get written authorization before running any reports and comply with the Fair Credit Reporting Act (FCRA) when using consumer reports to make housing decisions. If you deny someone based on a credit or background check, you must provide an adverse action notice.
Step 4: Verify Income and Employment
Don’t take income claims at face value. Ask for supporting documentation, such as:
- Two to three months of recent pay stubs
- A recent bank statement (if self-employed)
- An offer letter or employer contact for verification
- Tax returns (for self-employed applicants)
Call the employer if there’s any doubt. A quick five-minute call can confirm employment status and salary and save you a lot of trouble down the road.
Step 5: Check Rental References
Call previous landlords, not just the current one. Current landlords have an incentive to give a glowing reference to get a problematic tenant out. Past landlords will give you a more honest picture.
Ask:
- Did the tenant pay rent on time?
- Did they give proper notice before moving out?
- Would you rent them again?
- Were there any complaints from neighbors?
- Did they leave the unit in good condition?
Step 6: Make Your Decision — and Document It
Once you’ve reviewed all the information, make your decision based on your written criteria. If you’re approving the applicant, great, get the lease signed and collect the deposit. If you’re denying them, document your reason clearly and tie it back to your written criteria.
Keep all approved and denied applications for at least 3 years. If a fair housing complaint ever surfaces, your records are your best defense.
What NOT to Say or Ask
Even well-meaning questions can cross a legal line. Avoid these in your application, advertising, and any conversations with applicants:
- “Do you have kids?” Familial status is protected.
- “What country are you from?” National origin is protected.
- “What religion do you practice?” Religion is protected.
- “Are you disabled?” Disability is protected. (Note: you must consider reasonable accommodation requests from applicants with disabilities.)
- “Are you married?” Marital status is protected in many states.
- “Do you have a Section 8 voucher?” The source of income is protected in many jurisdictions. Even if it isn’t yours, be careful about how you handle this.
In your advertising, avoid phrases like “perfect for a single professional,” “quiet neighborhood — no children,” or “ideal for couples.” These can signal a preference that excludes protected classes.
The Bottom Line
Great tenant screening isn’t about finding someone who seems like a nice person; it’s about finding someone who meets objective, well-defined criteria and has a demonstrated history of paying rent and maintaining their living space. When you put that process in writing, apply it consistently, and document your decisions, you protect yourself legally while dramatically improving your odds of finding a great long-term tenant.
Do the work up front, and you’ll spend a lot less time dealing with problems down the road.
Have questions about tenant screening or fair housing in your state? Drop them in the comments — we’d love to help.