.webp)
Tenant screening is an important part of the rental process since it weeds out potentially problematic tenants. However, you need to be responsible for how you conduct your screening. There are limits to what you can do or ask, and it’s important to learn what they are to avoid violating laws.
What You Can Do During Tenant Screening
Verify Income
Landlords can request documents or photos that can verify their employment, such as pay stubs, employment letters, tax returns, bank statements, and more. This shows that they will be able to afford your rental rates and prevent instances of late or non-payments.
Run Credit Checks
After you ask permission, you can run a credit check to assess their payment history, existing debt, and financial responsibility. Many landlords use this criterion since it paints a bigger picture of how your potential tenant handles their finances, which can affect you and your rental business.
Check Rental History
Checking an applicant’s income and credit score may not be enough. A person can be financially responsible but still be a bad tenant. They can pick fights with landlords and other tenants, or cause expensive damage. Calling previous landlords can help you determine a potential tenant’s behavior.
Deny a Tenant Based on Objective Criteria
If someone doesn’t pass the screening criteria you’ve established, you are within your right to reject their application to rent your property or unit. The very reason why you’re conducting tenant screening in the first place is to keep out tenants who won’t be a good fit for your rental.
What You Can’t Do During Tenant Screening
Base Criteria on Protected Classes
Landlords cannot approve or reject an application based on race, color, religion, national origin, sex, disability, or familial status, as this will violate Fair Housing laws. If you feel like they won’t feel comfortable based on the existing tenants you have, it doesn’t matter since it’s not for you to decide.
Asking Invasive Questions
You can ask personal questions when it comes to their financial stability, such as their job or how long they’ve been employed. However, there are invasive questions you cannot ask, such as medical conditions, disabilities, marital status, plans for children, or pregnancy.
Charge Excessive or Illegal Application Fees
Some states regulate the amount landlords can charge for the application process. Overcharging or adding hidden fees can lead to violations. In San Diego, the application fee cannot exceed $62.02 per application. Be sure to check the Consumer Price Index to apply the needed increases in the maximum amount.
Favor Certain Applicants
There is a new law affecting San Diego landlords, requiring them to accept applications in the order in which the completed applications are received. In addition to that, they also need to approve the first applicant who meets all the screening criteria.
How You Can Avoid Making Tenant Screening Mistakes
The smallest slip-up can cause you a lot of stress and trouble, but they are entirely avoidable if you do your due diligence. If you feel like it might be way over your head, you can always hire tenant screening services or property managers to take over.
Investment Safe Property Management has a comprehensive screening criteria to make sure that you only get quality tenants, and the best part, you won’t have to lift a finger. Our services have a lot more to offer, and they could benefit your rental business greatly.
Interested? Contact us to learn more about what we can bring to the table.