Rental Application Guide: Screen Tenants the Right Way

Rental Application Guide: Screen Tenants the Right Way

Finding the right tenant can be the difference between a profitable rental property and a nightmare of missed payments, damages, and costly evictions. A well-designed rental application is your first — and most important — screening tool.

Why a Rental Application Matters

A rental application lets you: - Gather the information needed to run a credit and background check - Document the applicant's employment, income, and rental history - Obtain authorization for background and credit checks - Create a paper trail that supports any legal defense if a rejected applicant claims discrimination

What to Include in Your Rental Application

Personal Information - Full legal name, date of birth (for background check purposes) - Current address and how long they've lived there - Phone number and email - Government-issued ID number (to verify identity)

Employment and Income - Current employer name, address, and phone - Position and employment dates - Monthly gross income - Authorization to verify employment

Income Requirements: Most landlords require income of 2.5x–3x the monthly rent. This is legal to require as long as applied consistently.

Rental History - All addresses for the past 2–5 years - Landlord names and contact information - Reason for leaving each residence - Any evictions or late payment history

References - Personal or professional references (not family members) - Contact information for each

Additional Occupants - Names and ages of everyone who will live in the unit - Any pets (breeds, weights, vaccination records)

Background Check Authorization Written consent to run a credit report and criminal background check is legally required under the Fair Credit Reporting Act (FCRA).

What You CANNOT Ask Under Fair Housing Laws

The Fair Housing Act prohibits discrimination based on: - Race, color, national origin - Religion - Sex - Familial status (having children) - Disability

Many states add further protections: source of income (including Section 8 vouchers), sexual orientation, gender identity, immigration status, marital status, and more.

Questions to avoid: - "How many children do you have?" - "Where are you originally from?" - "Do you have a disability?" - "Are you married?"

Applicant Evaluation Criteria

Apply the SAME standards to every applicant. Document your criteria in writing before accepting applications:

1. 1Credit score minimum (be consistent — e.g., 620+)
2. 2Income requirement (e.g., gross income 3x monthly rent)
3. 3Rental history (no evictions in past 5 years)
4. 4Criminal background (be aware: blanket criminal history bans may violate fair housing in some jurisdictions)
5. 5References check (contact previous landlords)

Processing Fees

Most states allow landlords to charge a screening fee to cover the cost of credit and background checks. Many states cap this fee. The fee must be used solely for screening costs, and if you don't check the applicant's background, you typically must refund it.

After Review: Accepting or Denying Applications

• Acceptance: Send a written acceptance and move quickly to lease signing
• Denial: Provide a written denial notice; if you used a consumer report (credit/background check), you must comply with FCRA adverse action notice requirements, including the applicant's right to dispute the report

Use iRunDocs to create a comprehensive rental application that collects all the information you need while staying fully compliant with fair housing law.