I also think it's strange that, after an applicant submits an application, I have to click a button which sends another email to them so that they can approve the screening.

Some rush to fill out an application on the spot to get their application in before any other.

@Shawn RegnierSounds like you have done your research, and are planning on forming a legal corporation and making an S election for tax purposes.A reminder, remember to file your S election within applicable time limits (there is relief for late filing but reasonable cause is required), and also to pay out 'reasonable compensation'.California recognizes the federal S election so no separate state S election is required.Another note, reasonable comp is not plucked out of the air, or applied at a general percentage level, but determined according both your businesses and your facts and circumstances. 

I have an applicant with the following scenario:1.  

[Edited to add: I would choose applicant B.]

Heavily screen every applicant.

An applicant asking to talk to our past tenants is a first and indicates that they cannot take the fact that the landlord sets the rules. 

Anytime someone wants money up front to look for a loan for you or to "get" a loan, walk away.Some will have you send a check or credit card for a small amount and then hack that account and drain it.Others will get personal ID from you on an application form and set up a fake account and use Identity theft to steal money in your name.And still others will take a small fee up front, then say they need more for the next step then they need a large amount to fund and then once you've given them that you can never reach them again.Plenty has been written on BP by people's bad experiences.

They don't screen applications properly.

All that aside I would pass on this applicant