The dos and don'ts of tenant screening
As a landlord, tenant screening is a crucial step in the rental process. It can help you to ensure that you are selecting the right tenant for your property and minimize the risk of future issues. However, tenant screening can also be a legal minefield, with strict laws in place to protect renters from discrimination. In this article, we'll cover the dos and don'ts of tenant screening to help you navigate this process with confidence.
Dos of Tenant Screening
Have a written screening policy.
Your screening policy should be in writing and available to all potential tenants. This policy should outline the criteria you use to evaluate tenants, such as credit history, rental history, and income. Having a written policy helps to ensure that all applicants are treated fairly and can protect you against discrimination claims.
Conduct background and credit checks.
It's essential to run a background check on potential tenants to verify their criminal history, employment history, and rental history. A credit check can also help you assess the tenant's financial responsibility and ability to pay rent on time. Be sure to obtain the applicant's written consent before conducting any background or credit checks.
Verify employment and income.
It's important to verify a potential tenant's employment and income to ensure that they have the financial means to pay rent. Ask for a copy of their most recent pay stubs or tax returns to verify their income.
Check references.
Contact the applicant's previous landlords and personal references to verify their rental history and character. Ask specific questions, such as whether they paid rent on time, caused any damage to the property, or had any disputes with neighbors.
Don'ts of Tenant Screening
Discriminate against protected classes.
Federal and state laws prohibit discrimination against protected classes, such as race, color, national origin, religion, sex, familial status, and disability. It's essential to avoid any questions that could be interpreted as discriminatory, such as asking about the applicant's religion or whether they have children.
Base decisions on personal biases.
It's important to evaluate applicants based on objective criteria, such as their credit score, rental history, and income. Don't let personal biases or stereotypes influence your decision-making process.
Use social media to screen tenants.
Using social media to screen tenants can be a slippery slope. It's easy to stumble upon information that could be used to discriminate against a tenant. For example, if you see a potential tenant's religious affiliation on their Facebook profile, you could be accused of religious discrimination.
Make promises you can't keep.
Don't make promises to tenants that you can't keep, such as guaranteeing that the rent will never increase or that they will never be evicted. Be transparent about your policies and procedures to avoid any misunderstandings.
In conclusion, tenant screening is a critical step in the rental process. By following the dos and don'ts outlined above, you can protect yourself from legal issues and find the right tenant for your property. Remember to have a written screening policy, conduct background and credit checks, verify employment and income, and check references. And above all, avoid discrimination and personal biases in your decision-making process.