Bad tenants cost more than the rent they owe. A tenant who doesn't pay for 6 months, trashes the unit, and leaves you $4,000 in damage can cost you $15,000+ in lost rent and repairs.
Screening takes 30 minutes per applicant. Evicting a bad tenant takes 6 months and $3,000–$8,000 in legal fees.
You do the math.
The Screening Checklist
1. Credit Report
Order one through a tenant screening service (TransUnion, Experian, etc.) or directly from the applicant's credit via their own authorization.
What to look for:
- Score: 600+ is workable; 650+ is preferred. Below 600 means credit problems.
- Missed payments: One missed payment? Life happens. Multiple 30-60-90 day lates? Pattern.
- Charge-offs: Account sent to collections. Red flag, but not disqualifying if it's 5+ years old.
- Recent delinquencies (last 2 years): This is the biggest predictor of future non-payment. Recent late payments = you're next.
- Evictions on credit report: Automatic decline (unless it's a case of mistaken identity, which happens rarely).
The call: A 580 credit score with recent missed payments is riskier than a 620 with old charge-offs.
2. Eviction History
Run an eviction search through:
- Your state/county court records (free, but time-consuming)
- Third-party tenant screening (ID.me, MyRental, AppFolio) — $10–$30 per report
- Some credit agencies include eviction history
Red flag: Any eviction in the last 3 years. Hard pass.
Gray area: Eviction 5–8 years ago. Ask the applicant to explain. (Divorce? Illness? Job loss? Could be legitimate. Repeated evictions? Pattern.)
3. Criminal Background Check
Not required in most states, but permissible. Many landlords skip this to avoid discrimination issues.
What you can check: Whether the applicant has been convicted of a felony. You CAN reject an applicant for violent felonies, drug manufacturing, sex offenses. Most states let you use discretion here.
What you CAN'T do: Reject based on arrests (no conviction), sealed records, or charges older than 7 years.
Reality: Most small landlords don't run criminal checks; it's overly cautious and legally risky if not done correctly. Focus on credit and eviction history instead.
4. Employment Verification
Call the applicant's employer or request a recent pay stub.
What to verify:
- Employment is real (not a friend picking up the phone)
- Income is sufficient (typically 3x monthly rent)
- Employment is stable (not on 90-day probation)
Income rule: If rent is $1,200, gross monthly income should be $3,600+. This ensures they can afford rent even if other expenses spike.
5. Income Documentation
Request:
- Recent pay stubs (last 2–3 months)
- If self-employed: 2 years of tax returns
- If on disability/retirement: disability letter or Social Security statement
- If relying on co-signer: their income docs too
Red flag: Applicant refuses to provide income docs. Automatic decline. If they won't provide docs, there's a reason.
6. Rental History
Call previous landlords (or request written references).
Key questions:
- Did they pay on time?
- Did they maintain the unit?
- Any complaints from neighbors?
- Would you rent to them again?
The truth: Most previous landlords won't trash a tenant even if they were mediocre, because they just want the tenant out. But if a previous landlord says "absolutely not," listen.
Synthesizing the Data
You'll get competing signals. A 590 credit score but zero evictions and 5 years at the current job? Maybe yes. A 680 credit score but an eviction 2 years ago? No.
Weighting:
- Eviction history (40% of your decision) — most predictive of default
- Recent payment history (30%) — recent lates = you're next
- Employment stability (20%) — income is secondary to willingness to pay
- Rental references (10%) — nice to have but often biased
Legal Guardrails
- Fair Housing Act: You can't discriminate based on race, color, religion, sex, familial status, national origin, or disability.
- Credit discrimination: You can use credit scores, but apply the same standard to all applicants.
- Adverse action notice: If you deny an applicant, you must notify them of the reason (credit score, eviction history, etc.) within 3 days.
- State-specific laws: Some states limit how far back you can look at evictions (7 years) or credit history (7 years); verify your state's rules.
The Reality Check
In a competitive market, top-tier tenants (700+ credit, stable job, stellar references) get snapped up. You'll likely rent to someone with some red flags.
Your job is to avoid the worst applicants (recent eviction, current delinquencies, no stable income). If someone passes 4 out of 5 criteria and fails one, you're probably okay.
But if they fail 2+ criteria (eviction + recent late payments, or no job + low credit), pass.
The Tool
Use an online tenant screening service ($10–$30 per report) — it aggregates credit, eviction, and criminal data in one place. Worth it for peace of mind and legal documentation (you have a record of screening).
Screen carefully. A 30-minute investment in screening can save you $10,000 in legal fees and lost rent.