Chapter 3: Tenant Screening Criteria

Setting Tenant Screening Criteria

Set clear tenant screening criteria to find reliable renters. Learn key standards like income, credit, and rental history while staying compliant.

Ben Luxon

Head of Real Estate Education & Editorial at Landlord Studio

Finding the right tenant is one of the most important responsibilities for any landlord. A reliable tenant ensures steady income, takes care of the property, and minimizes costly turnover or legal disputes. But many landlords make the mistake of handling tenant screening on a case-by-case basis without a defined process.

Establishing your tenant screening criteria up front is essential. It creates a consistent standard for evaluating applications, protects you from claims of discrimination, and makes it easier to quickly identify qualified renters.

Why You Need Screening Criteria

  • Consistency: Applying the same standards to every applicant helps ensure fair treatment and reduces bias.
  • Legal Protection: Written, objective criteria demonstrate compliance with the Fair Housing Act and local regulations.
  • Efficiency: Having criteria in place lets you sort through applicants faster, avoiding wasted time with unqualified renters.
  • Better Tenants: Clear expectations attract responsible applicants and discourage those who may not meet requirements.

Key Tenant Screening Criteria to Consider

When setting your screening standards, focus on factors that directly relate to a tenant’s ability to pay rent and maintain the property. Common examples include:

1. Income Requirements

A common rule is that tenants should earn at least 2.5x - 3x the monthly rent (e.g., $4,500 gross income for $1,500 rent). This helps ensure that the tenants can afford the rent and any additional living costs which dramatically reduces the risk of late or missed payments.

2. Credit Score

Many landlords look for a minimum credit score of 600–650 and above. However, don’t rely only on the credit score alone. Review the full credit history for positive indicators like on-time rent payments, low debt, and stable credit use and watch out for red flags like numerous open tradelines and missed payments.

3. Rental History

Look for a track record of on-time rent payments, no recent evictions, and positive landlord references.

Make sure to speak with the previous landlords personally. Ultimately, an applicants past behaviour is a key indicator of their future behaviour. So, applicants with a stable housing history are less likely to default or cause property issues.

4. Employment & Income Stability

As well as meeting your minimum income requirement, you should look for job stability as this indicates long-term income security. Verify their current employment and request proof of income (pay stubs, W-2s, tax returns, or bank statements).  

However, be mindful that some states prohibit discrimination based on income sources (e.g., housing vouchers).

5. Behavioral Standards

When you're checking their references, ask their previous landlords about lease compliance, respect for neighbors, and property care.

6. Pet Policy

Decide whether you’ll allow pets, and if so, make sure you have a clear pet policy outlining any limits on size, breed, and deposits.

For example, you might specify that; “Pets are allowed with a $300 deposit, maximum 100 lbs.”

7. Criminal Background

When looking at criminal backgrounds, be aware that you cannot exclude applicants based on arrests, only convictions.

Additionally, if you do choose to exclude applicants based on their conviction record you must be aware that you cannot have a blanket ban. Instead, you should only look at related convictions, such as convictions that could endanger others or pose a risk to you property.

Always follow local and federal guidance on fair use of criminal records.

8. Property-Specific Rules

Finally, clarify non-negotiables like smoking policies, sub-leasing, guest policies, roommate approvals, and parking restrictions.

Example of Fair Tenant Screening Criteria

Criterion Requirement
Income Minimum 3× rent gross monthly income
Credit Score Minimum 650
Rental History No evictions in last 5 years
Employment 6+ months current employment or 2 years self-employed
Pets Allowed with $300 deposit, max 100 lbs
Smoking Non-smoking property
Criminal Background No violent felonies within past 7 years

Stay Compliant with Fair Housing Laws

It’s critical to remember: you cannot discriminate based on race, color, religion, sex, national origin, familial status, or disability. Your criteria must always be:

  • Objective (based on financial and rental qualifications).
  • Consistently applied to all applicants.

Having written standards (and sticking to them) protects you if your decisions are ever challenged.

Read: Tenant Screening Laws: What Landlords Can (and Can’t) Do

Be Transparent in Your Rental Listing

Once you’ve defined your criteria, make them clear to prospective tenants. Transparency saves time, weeds out unqualified applicants, and reassures serious renters that you manage your property professionally.

Include wording like:

“All applicants must complete a rental application, consent to a credit and background check, and pay a $50 application fee.”

This sets expectations early and builds trust.

Final Thoughts

By establishing your tenant screening criteria before you start reviewing applications, you protect yourself legally, save time, and attract better tenants. Clear, fair, and consistent standards are the foundation of successful property management.