This Is A Member-Only Page

Also see: Tenant Selection | Cause for Refusal | Tenant's Social Security Numbers | Credit Reports

      Being in a hurry to fill a vacancy and not properly checking tenant's credit history, references and background often results in very serious problems for both landlords and neighborhoods. It also contributes to the public's perception that "Those Damn Landlords Will Rent To Anyone."

      Inadequate screening is likely to result in tenants who pay the rent late, or not at all; tenants who are likely to trash your property, move in undesirable friends ... or worse ... operate a gang or drug house in your property. Studies show that 90% of tenants who violate their rental agreements do so repeatedly. Without proper screening, bad guys are able to move through a community like a cancer destroying every home they touch and impacting the quality of life for all of us. With today's information technology there is little reason to allow that kind of pattern to continue.

      Tenant screening starts with a detailed rental application that results in as much information about the applicant as is reasonably possible. It must also grant the landlord a right to check references, criminal record, employment and credit. Landlords may require a tenant's Social Security Number  for screening purposes. The Rental Application forms we provide to our members informs prospective tenants if the landlord will charge a credit check or screening fee. However, prospective tenants must understand that paying a credit check fee does not guarantee the tenant will get the rental unit.

See our page on Rental Application Deposits and Screening Fees.

      A landlord should always try to find out if the tenant applicant has a criminal record and has ever been evicted. The person making the decision on whether to rent to an applicant should thoroughly examine a credit report. RHOL members can do everything right on-line in a matter of a few minutes utilizing a third party vendor to which RHOL provides access.  

      Landlords should check a prospective tenant's credit history with at least one credit reporting agency to see how responsible the person is managing money, the report will also help to verify that the applicant is actually who they say they are.

      Landlords must be leery of applicants with lots of debts-this clearly includes people whose monthly payments plus the rent obligation will exceed 40% of their after-tax income. The person's bill-paying habits, lawsuits and evictions are also very important information to have before you make a decision to turn over a valuable asset to a stranger.

      Be wary of an applicant who has no checking or savings account. Tenants who offer to pay cash or with a money order should be viewed with extreme caution. Perhaps the individual bounced so many checks that the bank dropped the account or the income comes from a shady or illegitimate source-for example, from drug dealing.

      Sometimes, a landlords only choice is to rent to someone with poor or fair credit-or even no credit (for example, a student or recent graduate). If that's the situation, other sensible screening requirements might include:

.   positive references from previous landlords and employers
.   a creditworthy cosigner or guarantor on the lease.

      There are several good web sites that can help you as well. Including this one.

    One more thing: There is a great deal more very important information on tenant screening and credit reports in the RHOL Credit web.