Every landlord knows the stress of choosing the wrong tenant. Missed rent, property damage, endless excuses – these headaches are avoidable if you start with a strong screening process. The goal isn’t to eliminate every applicant with a flaw but to understand who you’re working with and whether they can meet their obligations responsibly.
Here are four key steps that help you find quality tenants while keeping your property protected.
1. Evaluate Income – the Right Way
Income is the first thing that most landlords check, and for good reason. The standard guideline is that a tenant’s gross monthly income should be at least two and a half to three times the rent. That gives enough room for living expenses, utilities, and other obligations.
But not every applicant’s situation is the same. Some tenants may have multiple sources of income – Social Security, child support, part-time work, or even cash-based jobs like restaurant service. In these cases, a little flexibility and understanding go a long way.
For instance, someone on Social Security may have a tight but reliable budget, while a server who earns strong tips might meet the rent comfortably even if their base income looks low on paper. Look at both the total income and its consistency. If the sources are stable and verifiable, that’s what matters most.
Ultimately, your goal isn’t just to find tenants who can afford the rent today, but to find those who can sustain it over time.
2. Talk Through Their Credit History
Credit reports tell a story, but it’s not always the full story. Before you even pull a report, let the applicant know you’ll be reviewing their credit. Then ask, “Is there anything I should be aware of?”
This small step sets the tone for an honest conversation. Many people have medical bills, student loans, or one-time financial setbacks that show up on their reports. By asking upfront, you give them a chance to explain before you make assumptions.
A good tenant will usually appreciate the opportunity to be transparent. They might say, “I had a medical bill that went to collections, but I’m paying it off,” or “I missed a few payments years ago when I changed jobs.” What you’re looking for isn’t a perfect score, but a track record of responsibility.
Credit history, combined with income verification, paints a more complete picture of the tenant’s financial behavior. Use it as a tool for understanding, not as an automatic disqualifier.
3. Check for Past Judgments, Evictions, and Legal Issues
One of the most revealing parts of tenant screening is a background check for court records. Criminal background checks are standard, but don’t overlook civil court records for landlord-tenant cases.
Every state has an online portal where you can search by name to find past judgments, evictions, or cases. Many are organized by county. If a tenant has been evicted multiple times, or has a pattern of disputes with landlords, that’s a red flag work paying attention to.
On the other hand, finding nothing doesn’t automatically mean perfection. Some tenants simply haven’t rented long enough to have a record. That’s why this step works best as part of a broader review.
Checking for legal history doesn’t just protect you financially – it also gives you insight into how the person handles conflict. Someone who’s been through a legitimate hardship and resolved it responsibly is very different from a “professional tenant” who knows how to game the system.
4. Consider Cosigners and References
Even after all your screening, you may find applicants who fall slightly short in one category. Maybe their credit is limited, or their income is just under your threshold. Instead of rejecting them outright, consider a cosigner.
A cosigner adds another layer of security by guaranteeing the rent if the tenant can’t pay. For younger renters or people just starting out, a parent or relative can often fill that role. It gives them the opportunity to build rental history while giving you added confidence that rent will be paid on time.
References also play a part. Speaking with previous landlords or employers can give you valuable context. Was rent always on time? Did they leave the property in good condition? Were there issues with noise or complaints? A quick call can save you from learning those answers the hard way.
The best screening process balances structure with fairness. You want to create consistent standards that apply to every applicant, but also leave room for real-life context.
Final Thoughts
Good tenants are the foundation of a successful rental portfolio. They protect your income, maintain your property, and save you countless hours of stress. By focusing on income stability, honest communication about credit, careful review of past records, and smart use of cosigners and references, you’ll set yourself up for fewer surprises and more consistent returns.
Tenant screening isn’t about finding perfection. It’s about identifying reliability. A little extra effort before signing the lease often prevents far greater problems later on.
Many investors we work with appreciate learning strategies that help them make stronger, more informed decisions about their properties. If you are looking to expand your investment portfolio or evaluate new opportunities in Pennsylvania or Maryland, reach out to our team to discuss how we can help you achieve your investment goals.
