Stating your tenant criteria up front?

Question

Do you place your tenant screening criteria on the application or advertisement?  I have the income requirement on the application now, but I'm curious if other PMs list things such as minimum credit score, eviction-free period, and criminal check history requirements.

Patti Robertson · Answer

I do.  Below is what my company publishes for criteria.  We also publish that our application fee is not refundable. Of course if someone just gets beat to the finish line on a property we just accepted another applicant on, we will refund an app fee, but if someone applies and they don't meet the published criteria, we do not refund the fee.  We tell them we specifically publish our criteria because we do not want people who don't meet it to apply.

QUALIFIED APPLICANTS WILL

- Have at least 3 times the rent in gross income and 2.5 times the rent in net income in verifiable, reliable income (exception Military with BAH or HUD voucher)
- Have no more than 2 occupants/bedroom
- Not owe any money to a previous landlord
- Not have any recent evictions
- Have no aggressive breed animal
- Not have any unpaid utilities or car payments reported on the credit report or court records
- Not have been convicted of any crimes against people or property
- Not have been convicted of any drug manufacturing or distribution charges

Doug Spence · Answer

@Billy Daniel Absolutely! That way prospective tenants that do not meet your requirements will (in theory) not apply, which saves you time and saves them time. Just make sure you're following federal guidelines and you're not discriminating! For example, even if you want a military tenant (or don't want one) you can't specify that in your advertisement. You CAN outline how close your property is to nearby bases though, which might attract military tenants to apply.

Good luck and keep us updated on your journey!

Jeff Copeland · Answer

From a Fair Housing perspective, it is definitely a best practice to publish your criteria, and even more important that you adhere to them and treat every applicant exactly the same.

If your requirements aren't published, applicants can claim you are churning application fees or playing favorites based on a protected class (race, color, religion, national origin, sex, age, familial status, etc.) rather than based on published criteria. And it's hard to prove otherwise if your requirements are kept secret.

The one caveat here is be careful how you state your requirements when it comes to criminal records. There have been dozens of lawsuits against landlords and PMs from felons based on HUD's disparate impact guidance (we go so far as to reference and link to the HUD guidance in our published screening criteria), and you cannot make blanket statements such as "No Felonies".

Malkia Ra · Answer

I've been successful stating the basic requirements in my ads... credit score minimums and credit deal-breakers, background/rental checks, deposit requirements, etc... this way interested parties are immediately aware of the bare minimum they'd need to meet in order to qualify.

It's during an initial phone call or email where I conduct another layer of pre-screening before proceeding with scheduling a showing/inviting them to complete the application.

John Teachout · Answer

The
tenant profile for
xxx
Trice Rd.
Lamar,
GA 30xxx
is as follows:

No
smoking/vaping on property (inside or out) We do not rent to smokers
(of anything)

Credit
score
600+.

Minimum
verifiable monthly household income of $2500.00
  ($30,000
yearly)

Non
related adult occupants must each qualify for the property. (ie,
income can’t be combined)

Some
animals allowed with $200 non-refundable fee and $20 per animal pet
rent. breed restrictions apply. Dogs require specific approval. (any
"ESA" dogs require documentation and are subject to breed
restrictions) No cats allowed under any circumstances.

All
occupants age 18 or more must complete an application and background
check. There is no fee to complete an application but the background
check cost is about $35 per person. The background check is
comprehensive and includes credit, evictions, judgments, address
history, sex offender, criminal background, etc. It is paid directly
to the screening company. (price may vary)

References
and rental history required and will be checked.

Employment
will be verified. Income that can’t be verified will not be
considered.

Rent
is $840
per month, $850
security deposit. The first month's rent, last
month’s rent
and security deposit is required to be paid in cash. Subsequent
rent will be directly deposited into our xxxx Bank account. 
Animal fees (if any) required before move in. One
year lease.

Our
method of rent payment is depositing funds into our xxxxxxx Bank
account. This can be via cash, check, or transfer. You don't need to
have an account at the bank to make payments.

Tenant
arranges and pays all utilities. Confirmation of utilities required
prior to move in.

If
this profile fits you, please contact us to arrange a tour of the
property.

Thanks
for your interest in our properties

xxxxxxxxx
Properties

email.....phone number...

Ron H. · Answer

My ads list the basic requirements: 3x income, no evictions, pet restrictions, etc. and say that criminal and credit checks will be performed.  I also require a short pre qualification form to be filled out before viewing property.  Even with requirements stated clearly in ad, easily 90% of people filling out form do not meet the requirements as stated.

Cliff H. · Answer

@Billy Daniel I think this just depends on when you want to screen your prospectives: up front or in-app. @Scott Spanier's not wrong that people rarely read descriptions, but you can/should absolutely force prospects through your prescreening questions before opening the door for them to come down and look at a space.

For example, search the forums here for a tiny glimpse on how many newer PMs/landlords complain about driving out to meet a prospect... only to be no showed or stood up by someone who had no intention or capacity to follow through from the beginning.

Prescreening prospects to separate the window shoppers from those who meet and match your pre-determined, in-writing rental standards is critical to ensure you're not wasting anyone's time: theirs or yours.

Hope this helps and feel free to connect or reach out with further questions. 20 years in the business and there's definitely good and bad ways to go about tenant screening.

Dave Mays · Answer

Thank you.  This is great.  I'm glad I asked.  I picked up 1 important thing:  No related adults must qualify on their own.  Very good point.   I also like Confirmation of utilities in tenants name prior to move it.  Very smart.  Lastly I like No cats under any circumstances.  I starting not allowing cats last year and I don't care if that shrinks my tenant pool.  Not worth it.    Thanks again, John!

Stating your tenant criteria up front?

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