Home > Screening Process

Preliminary Work

A.  DEVELOP RENTAL CRITERIA:
  Define the conditions and requirements that an applicant must meet in order to rent your property.

DISQUALIFIERS:
  These items cause the AUTOMATIC AND IMMEDIATE REJECTION OF THE APPLICANT. Examples are: unpaid collections or unsatisfied judgments, illegal use of a Social Security Number or conviction of certain types of crimes.

INCOME REQUIREMENTS:
  Normally expressed as ratios and reflect the applicant’s income in terms of rent-to-income and debt-to-income.

MINIMUM STANDARDS:
  These requirements can be modified or waived. You may set a minimum requirement of two years or verifiable tenancy although there may be legitimate reasons why this condition can not be satisfied.

RESTRICTIONS:
  Factors that do not determine acceptance for residency, but rather conditions that will be imposed upon applicants if they are accepted. Included in this category are number of occupants, number of vehicles and pet restrictions. Provide a copy to every applicant. Have applicants sign this document indicating that they have read and understand the requirements.

  Care should be taken to insure that the criteria is in accordance with the Fair Credit Reporting Act (FCRA) and Fair Housing requirements. It must be applied consistently for all applicants.


B.  DEVELOP (OR OBTAIN) AN APPLICATION FORM THAT INCLUDES ALL INFORMATION NEEDED TO MAKE AN INFORMED DECISION:
  This form represents your best chance to get the information to determine if the applicant will be able to rent your property. Many landlords and employers will verify the information that your applicant provides, but they WILL NOT volunteer information.

  Residence history should include complete addresses. If the applicant lives in an apartment, get the unit number. Obtain the name of the landlord or property manager and a telephone number, the amount of rent and dates of occupancy.

  Employment history should include employer name, complete address, telephone number and supervisor’s name. Also get the applicant’s job title, starting date and salary.

  The application should contain an authorization allowing you to verify the information contained on the form as well as specific authorization to obtain a credit report.

Tenant Screening

1.  OBTAIN COMPLETED APPLICATION FROM APPLICANT:
  The application form should be legible and filled out completely. Be sure that the applicant signs the authorization. Look over each item to be sure that all information has been provided and that there are no time gaps. Remember, you cannot verify illegible or missing information. Ask for picture I.D. to verify the applicant’s identity. Check the address on the driver’s license and deposit check to see if they match the application.

  People over the age of 18 who intend to live in the apartment should be a party to the lease and you should obtain and verify their information. Make sure that all applicants sign the release statement so that you have their authorization to verify the information.


2.  OBTAIN THE APPLICANT’S CREDIT REPORT:
  This can be done through NTN Chicago or a third party vendor. There are three national credit bureaus. All credit bureaus have restrictions on credit access. A credit report can only be obtained for a lawful purpose (such as property rental) and only with the applicant’s written permission.

  Credit reports contain details of an individual’s credit history including demographics, individual account payment history, public records (collections, liens, judgments, garnishments, and bankruptcies), inquiries and miscellaneous data.

  A credit report is a vital part of the screening process. Unfortunately, most of the record is coded and is difficult to interpret. It is important to obtain credit reports from a source that will help you decipher this data.


3.  CHECK EVICTION HISTORY REPORT:
  These court documents will show whether an applicant has had trouble in the past that resulted in a previous landlord filing a court action. The Eviction Report is available from NTN Chicago or you can check with the County to see how you can check records directly. The importance of an eviction history search cannot be overemphasized.

  If an eviction shows, contact the plaintiff (landlord) in the action instead of the landlord provided by the applicant.


4.  OBTAIN TWO YEARS OF VERIFABLE EMPLOYMENT HISTORY:
  This will allow you to be sure that the applicant can afford the property and has not mis-stated any important information. Be prepared to fax a signed authorization. Most employers want proof that their employee has given permission to release this information.

  Initial contacts are normally made by telephone. Look up the employer in the telephone book instead of relying on the contact information provided by the applicant.


5.  OBTAIN TWO YEARS OF VERIFIABLE RESIDENCY HISTORY:
  This accomplished by contacting present and previous landlords. If the applicant claims to have owned a home, the mortgage should appear in the credit report. If an eviction was found, contact the landlord listed on the report to get particulars.

If Applicant Passes Above Screening

6. CRIMINAL BACKGROUND CHECK:
  Criminal history is the final step in the tenant screening process. Be aware, it also has the potential to place the landlord at legal risk if it is later found to be inaccurate. However, if the property is in an area that is experiencing criminal activity, then obtaining criminal history is highly recommended.

  Most landlords and managers who use criminal background checks, as part of the tenant screening process will reject an applicant with a criminal record that shows any of the following: conviction of any felony, conviction of crimes against people or property, conviction of crimes involving the manufacture, sale or distribution of controlled substances, conviction of crimes involving solicitation or prostitution and any crimes of a sexual nature.