What are the steps to conduct a fair tenant screening?

1 Set your criteria

Before you advertise your property, you should establish your criteria for selecting tenants. These may include income, credit score, rental history, references, and background checks. You should also decide if you accept pets, smokers, or co-signers. Your criteria should be consistent, objective, and non-discriminatory. You cannot reject applicants based on their race, color, religion, sex, national origin, disability, or familial status, according to the federal Fair Housing Act. Some states and localities may have additional protected classes, such as sexual orientation, marital status, or source of income.

3 Screen the applicants

When you receive applications from interested renters, you should review them carefully and verify the information provided. You should check their income, employment, and bank statements to ensure they can afford the rent. You should also run a credit report to see their payment history and debt ratio. You may need to obtain the applicants' consent and charge a reasonable fee for this service. You should also contact their previous landlords, employers, and personal references to ask about their reliability, behavior, and compatibility. Additionally, you should conduct a background check to look for any criminal records or eviction notices. You should use a reputable and compliant service for this purpose and follow the guidelines of the Fair Credit Reporting Act.

4 Select the best tenant

After you screen the applicants, you should compare them based on your criteria and choose the best one for your property. You should notify the selected tenant and offer them the lease agreement. You should also notify the rejected applicants and explain the reasons for your decision. You may need to provide them with an adverse action notice if you based your decision on their credit report or background check. You should keep a record of your screening process and results for at least one year in case of any disputes or audits.

5 Sign the lease agreement

The final step is to sign the lease agreement with the chosen tenant. You should review the lease terms and conditions with them and make sure they understand their rights and responsibilities. You should also collect the first month's rent and security deposit and provide them with a receipt. You should inspect the property with them and document its condition and inventory. You should also give them the keys and contact information and welcome them to their new home.