Tenant selection and screening involve an organized assessment of applicants interested in leasing a property. Property owners and managers endeavor to select tenants who will not only pay their rent on time, but who will also respect the leased property and adhere to lease terms. A comprehensive tenant screening process includes checking prospective tenants’ rental history, employment status, credit score, as well as verifying any references provided.
This evaluation ensures that reliable and responsible tenants occupy the rental properties, thereby minimizing the chances of property damage, unpaid rent, or potential eviction issues. It should be noted that though tenant selection is necessary, it must always conform to the Fair Housing Act. Under this law, there are seven protected classes: race, color, religion, national origin, sex, disability, and familial status. In other words, a property manager cannot discriminate against a potential tenant based on these attributes while conducting the tenant screening process. Non-compliance could lead to legal repercussions.
Therefore, the tenant screening should be a methodical, strategic process that respects legal guidelines and norms, ensuring an unbiased selection of credible tenants.
Laws may be different depending on the state. This is not meant to be legal advice.