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      Entering into a rental agreement with a new tenant should be viewed in much the same way as loaning someone the use of your own home -- or a great deal of money. 
      Like banks and other lenders, rental property owners must be sure that the person they do business with is worthy of that kind of trust and credit. Property owners can and should require that prospective tenants complete and sign rental applications and authorize checking the accuracy of the information provided. They should also request authorization to use credit reporting services.

Applications should always be given to any and all of those who wish to apply. Failure to provide applications to all prospective tenants may be viewed as a discriminatory act under the fair housing laws. The form should request at least the following information of applicants (and co-applicants, if any):

1. Name and current address

2. Co-Applicant
3. Drivers License and Social security numbers; It is also useful to ask to see and make copies of the applicant's driver's license and Social Security card to verify identity, signature, and current address.
4. Present landlord's name and telephone number
5. How long at current address and reason for moving
6. Previous address
7. Previous landlord
8. Name, address and phone number of the applicant's most recent employers
9. Wages, salary, benefits and length of time employed
10. The names and ages of all those who will be occupants of the unit.
11. Credit cards and bank accounts, including name of bank and account number(s) .
12. Information on the applicant's creditors, including name of creditor, account balance, and monthly payments.
13. Authorization to verify all information and order a credit report.
14. Signature and date.

    NOTICE: Professional property managers know how important tenant screening is so many require that every potential adult occupant completely fill out their own application. The information is used to screen each adult for potential social problems, as well as their ability to help pay the rent. 

     The landlord can charge a reasonable fee to cover the cost of reviewing the application, verifying information and the actual cost of a credit report. (usually $5 to $25), there may be other costs, including the cost of time spent contacting the previous landlord and employer, and verifying the bank balance. This could amount to another $15 to $25. Local laws and customs may dictate, but in absence of any rules to the contrary, a fee of $25 to $50 is generally considered to be a reasonable fee.

If the applicant is turned down we should always consider the issue of fairness when deciding whether to return an application fee. A firm policy against returning fees may not always be appropriate. For example if there are two or more qualified applicants but only one vacancy. If, however, an applicant was turned down because they failed to disclose an eviction or bankruptcy, the fee should not be returned. In some cases, however, state and local laws determine when and if application fees must be returned.

State and local laws vary and are sometime very complex so it is always wise to use a preprinted form whenever possible to reduce the chances that you will violate Fair Housing, credit or some other law in some manner. All manner of real estate forms are available in the RHOL Forms Web. If you develop your own form, or build something from examples printed or downloaded from Rental Housing On Line, have a real estate attorney review it for compliance with federal, state, and local laws. View an example form.

The applications of all prospective tenants should be kept for a period of time prescribed by federal, state and local laws, generally a three year period. Keeping the application will ensure that the landlord has good evidence if a rejected tenant later decides to bring a lawsuit or complaint charging housing discrimination.

You may next want to read: Lease FAQs