Tenant Screening Done Right: How We Find Reliable Residents (Fairly)

Ask any experienced landlord what prevents the most problems, and you'll hear the same answer: screening. A thorough, consistent screening process reduces late payments, property damage and turnover, and it has to be done in a way that complies with fair housing law.

Start with written criteria

Before you list a unit, put your rental criteria in writing and apply them the same way to every applicant. Typical criteria include:

• Income: often gross monthly income of roughly 2.5–3× the rent, counting all lawful, verifiable sources of income
• Rental history: verifiable references from prior housing providers
• Credit: reviewed in context, looking at the pattern rather than a single number
• Identity verification for every adult applicant

Written criteria protect you in two ways: they keep decisions consistent, and they document that every applicant was evaluated on the same basis.

Know the fair housing basics

The federal Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status and disability. DC and Maryland add many more protected categories. Two that frequently trip up owners:

• Source of income. In DC and throughout Maryland, it is unlawful to refuse to rent to someone because they pay with a housing voucher or other assistance. Voucher income must be counted toward your income standard.
• Criminal history. In the District, housing providers generally may not ask about or run a criminal background check until after making a conditional offer, and then only consider certain offenses within a limited lookback period.

Rules also govern application fees, the use of older eviction records, and the reasons you must give when denying an application. These rules change, which is one of the biggest reasons owners work with a professional manager.

Verify, don't just collect

Pay stubs and bank statements can be altered. Good screening means verifying: contacting employers directly, confirming prior landlords are real (and actually the owner or manager), and checking that identity documents match the application.

Communicate clearly and quickly

Strong applicants often apply to several places at once. A fast, organized process (online applications, quick verification, decisions within a few business days) means you land the best residents instead of losing them to a competitor. When an application is denied, provide the required written notice, including any adverse action notice required when a consumer report was used.

Document everything

Keep each application, the criteria in effect at that time, verification notes and the decision. If a decision is ever questioned, a clean file is your best defense.

This article is general information, not legal advice. Fair housing and screening laws vary by jurisdiction and change over time. Consult a qualified attorney about your specific situation.