Alpharetta Management Services

How We Screen Tenants For A Rental Property

Placing the right tenant in a rental property protects the investment, increases the likelihood of receiving timely rent payments, minimizes property damage, and reduces legal risks. The right tenant is more responsible which leads to lower turnover costs, fewer vacancies, and a better rental experience. Proper screening also helps maintain compliance with fair housing laws, protecting landlords from potential liabilities while fostering a professional and stable rental relationship. At Premier Atlanta Real Estate, we recognize the importance of identifying good tenants and have a thorough system in place to filter through potential tenants and find the most qualified for your property.

What is Tenant Screening

In a nutshell, tenant screening is the process of evaluating prospective renters to determine their suitability for a rental property. It typically includes reviewing credit history, income verification, rental history, background checks, and references. The goal of the screening process is to assess a tenant’s ability to pay rent on time, maintain the property, and follow lease terms. A thorough screening process helps you reduce risks such as late payments, property damage, and evictions and it’s imperative that it follows all fair housing laws while performing the screening.

What is on our Screening Report?

The screening report contains all of the data needed to provide a clear picture of the potential tenant’s ability to pay rent and includes things like credit score, rental history, criminal background, and more. A thorough check, like the one we provide, contains items like this:

1. Rental application – This is the first step, where tenants provide basic personal information, rental history, employment details, and consent for background checks.
2. Credit check – This report provides insight into the applicant’s financial responsibility by showing their credit score, outstanding debts, and payment history. A strong credit history suggests reliability in making timely rent payments, while excessive debt or past delinquencies could be a red flag.
3. Criminal background check – This check reveals any past criminal activity, helping landlords assess potential safety risks. While certain offenses may not automatically disqualify an applicant, landlords must ensure their decision aligns with fair housing laws and doesn’t discriminate unfairly.
4. Employment verification – Confirming the applicant’s current job and employment status confirms they have a stable income to afford the rent. This is typically done by contacting the employer directly or requesting an employment letter.
5. Income verification – we require 3x the rent to ensure affordability. We verify income from pay stubs, tax returns, or bank statements to confirm the applicant has sufficient funds to cover rent and other expenses.
6. Contact previous landlords – Speaking with past landlords provides insight into the tenant’s rental history because most rental history is not reported online in a way that can be verified. A history of late payments or evictions may indicate potential issues. and we try to uncover that during this process.
7. Copy of a driver’s license – A valid ID confirms the applicant’s identity and helps prevent fraud. It also ensures the name on the application matches official records.
8. References – Personal or professional references provide additional perspectives on the applicant’s reliability, character, and responsibility. These can come from employers, colleagues, or long-term acquaintances who can vouch for the tenant’s behavior and may help a borderline candidate become approved.

The process a property manager performs on your behalf must comply with all Fair Housing Laws. MWe understand and follow them so we don’t not discriminate against potential renters. The Fair Housing Act (FHA) prohibits landlords from discriminating based on: Race Color National origin Religion Sex (including gender identity and sexual orientation) Familial status (e.g., pregnant women, families with children) Disability. The Fair Credit Reporting Act protects information collected by consumer reporting agencies such as credit bureaus, medical information companies and tenant screening services. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act.

Pre-Screening Tenants

When we list your property for rent, it’s possible to receive a large number of inquiries and interest. It’s unlikely everyone will meet our tenant screening process so it’s important to follow some pre-screening guidelines to help us work through the process efficiently. Many won’t be able to rent on your timeline, they may not meet other qualifications and they may be looking for something that is different from your property. Plus, some people really just like to look and have no intention of renting. Everyone’s time is valuable so we pre-screen people as much as possible and use the same process for everyone. Some pre-screening questions look like this:

• Why are you moving?
• When do you need to move?
• What is your monthly income?
• How many people will be living in the home?
• Do you have pets?
• Have you ever been evicted or had issues paying rent?

Then we can answer their questions and get a good idea if these are potential tenants we should show your property. It’s a good practice to have a written list of requirements to rent as well. We send ours to all of the potential tenants who inquire so they can see for themself if they will qualify.

The Screening Process

In order to efficiently screen tenants, we have created a process for consistency and for Fair Housing reasons. Before we start a screening, we pre-determined exactly what our requirements are to qualify a tenant. For us, the screening process does the following:

1. Tenant fills out an application – our process begins with the tenant answering a series of questions on the application and agreeing to have their background and credit checked.
2. Pull credit – we require a 680 credit score as a minimum for all of our rentals. The service we use pulls from TransUnion
3. Criminal background check – The service we use also pulls a background check on the applicant.
4. Document everything – Our property management software contains all of the documents in one place in case we ever need them.
5. Make professional decisions – property management is a business and you can’t afford to make emotional decisions or you may get burned. We stay objective and consistent.
6. Seek wise counsel – Anytime we have a legal concern, we consult an attorney and anytime we need experienced solutions or advice, we reach out to our network of property management peers to ensure we are working with best practices.

The Background Check

A thorough background check helps verify the information provided by potential tenants and identifies any relevant details that may impact their rental application negatively. This process typically includes:

• Criminal History Review – Screening for both misdemeanors and felonies. A criminal record does not automatically disqualify an applicant; factors such as the nature and timing of the offense are taken into account as is the nature of the infraction itself.
• Eviction and Court Records – Identifying past evictions or other court judgments related to rental history to assess potential risk. Past behavior is the best predictor of future behavior and knowing this upfront can save time and money down the road.
• Employment and Income Verification – Confirming employment status and income to ensure the applicant can afford the rent and verifying the accuracy of the information provided.
• Bankruptcy Status – bankruptcies, which may impact an applicant’s financial stability.

Conducting background checks helps property owners and us as property managers make informed leasing decisions while reducing the risk of property damage, missed rent payments, or disruptions within the surrounding community. A thorough screening process promotes a stable tenant that pays on time. It’s important to note that tenant screenings must comply with legal regulations, including the Fair Credit Reporting Act (FCRA). We must obtain written consent from applicants before running a background check and provide a copy of the report if an applicant is denied based on its findings.

Questions We Can’t Ask

The Fair Housing Act (FHA) prohibits discrimination against tenants based on race, color, religion, sex (including gender identity and sexual orientation), national origin, familial status, or disability. Asking questions related to these protected classes can lead to legal issues. Below is a list of questions we cannot ask a tenant during the screening process:

1. Race, Color, or National Origin

• What is your race?
• Where were you born?
• What is your first language?
• Are you a U.S. citizen? (You can, however, ask for proof of legal residency or work authorization.)

2. Religion

• What religion do you practice?
• Do you attend church/mosque/synagogue?
• Do you celebrate any religious holidays?

3. Sex, Gender Identity, or Sexual Orientation

• Are you male or female?
• What is your gender identity?
• Are you gay or transgender?

4. Familial Status

• Are you married or single?
• Do you have children? / Are you planning to have children?
• How many people are in your family?
• Are you pregnant?
• Do your kids play outside a lot?

5. Disability

• Do you have a disability?
• Have you ever been treated for a mental illness?
• Do you take prescription medication?
• Do you have a service animal because of a disability? (You can ask for documentation if they request an accommodation.)
• Are you capable of living on your own?

6. Age

• How old are you? (You can ask if they are over 18.)
• Are you retired?

7. Criminal History

• Have you ever been arrested? (You can ask about convictions but not arrests.)

8. Source of Income

• Do you receive government assistance?
• Do you have a Section 8 voucher? (Some states prohibit discrimination based on lawful income sources.)

9. Personal Lifestyle

• Do you drink alcohol?
• Are you married?
• Are you planning to have roommates?

Questions We Can Ask

There are a number of pertinent questions we can and do ask during the tenant screening process. Below is a list of things that can be asked:

1. Identity & Basic Information

• Can you provide a government-issued ID for verification?
• What is your full legal name?
• Who will be living in the unit? (For occupancy limits, not family status.)
• Is everyone in your household over 18?

2. Income & Employment

• What is your monthly income? Can you provide proof of income (pay stubs, tax returns, or bank statements)? What is your current job title and employer?
• How long have you been employed at your current job?
• Can we contact your employer for verification?

3. Rental History

• What is your current address? How long have you lived at your current residence?
• What is the reason for moving? Can you provide contact information for your current and previous landlords? Have you ever been evicted? (This must be asked of all applicants.)

4. Credit & Background Checks

• Are you willing to undergo a credit and background check?
• Have you ever filed for bankruptcy? (Must be applied consistently to all applicants.) Have you ever been convicted of a crime?

5. Rental & Lease Terms

• Do you have the security deposit and first month’s rent available?
• Are you looking for a long-term or short-term lease?
• Do you have any pets?
• Do you smoke?
• Do you have renters’ insurance, or would you be willing to obtain it before moving in?

6. Emergency Contact & References

• Can you provide at least two references?
• Who should we contact in case of an emergency?

How Much Does Tenant Screening Cost?

The cost of tenant screening is paid by the tenant as an application fee and includes the comprehensive list we’ve outlined here. Application fees vary by property manager and by landlords. Feel free to contact us about our policy on tenant screening costs.

Should I hire a Property Manager in Alpharetta to Screen Tenants, or can I do it myself?

Anyone can screen tenants if they follow Fair Housing and Fair Credit Act laws. The most important differences are going to be experience and an evolved process over time, training on execution and efficiency, systems and checklists to ensure a consistent process, objectivity in evaluating potential tenants and brokering the transaction between landlord and tenant, which reduces friction and adds a level of professionalism. It’s easier for a property manager to consistently hold true to policy than for an owner/landlord. If you are ready to get started or learn more about how Premier Atlanta Real Estate can help you with Alpharetta Property Management, fill out the form below and we will be happy to talk with you about how we can help!