Owning a rental property business carries the genuine, real risk of a problematic tenant, and a proper, thorough screening process before accepting an applicant protects against this risk far more reliably than judging based on a good first impression alone.
These are the elements of a genuinely proper tenant screening process.
Verify genuine income and employment
Confirming an applicant’s genuine, current income and employment stability, rather than accepting their stated figures without verification, is a foundational step that protects against a tenant unable to sustain rent payments.
This verification should be done consistently for every applicant, not selectively based on a subjective first impression.
Check genuine rental history and references
Contacting previous landlords for a genuine account of an applicant’s rental history, payment reliability and property care reveals patterns that an application form alone doesn’t show.
A consistent pattern across multiple previous landlords carries more genuine weight than a single reference alone.
Conduct genuine credit and background checks
A proper credit check reveals genuine financial reliability patterns, and depending on the jurisdiction and property type, a background check can reveal other relevant risk factors worth knowing before signing a lease.
Our guide to understanding credit scores would cover this kind of check in more depth where relevant, alongside other verification steps.
Apply the genuine screening process consistently
Applying the same screening standard to every applicant, rather than varying it based on subjective impressions, both protects the business more reliably and avoids the real legal risk of inconsistent, potentially discriminatory treatment.
The Information Regulator sets out the data protection obligations around handling an applicant’s personal and financial information collected during this process.
Frequently asked questions
Why does tenant screening matter for a rental business?
A problematic tenant carries genuine, real risk, and a thorough screening process protects against it more reliably than a good first impression.
Should an applicant’s stated income be accepted without verification?
No, confirming genuine, current income and employment stability is a foundational screening step.
Why does checking rental history matter?
Contacting previous landlords reveals payment reliability and property care patterns an application form alone doesn’t show.
Should a credit check be part of tenant screening?
Yes, it reveals genuine financial reliability patterns worth knowing before signing a lease.
Should screening standards vary between applicants?
No, applying the same standard consistently protects the business and avoids the risk of discriminatory treatment.
