Renters
Renting By Owner: How to Screen Tenants Like a Pro
A 6-step tenant-screening process independent landlords can use to avoid bad tenants, missed rent, and expensive evictions.
6 min read · Updated 2026-04-18
One bad tenant can cost you 6 months of rent plus $3,000–$10,000 in eviction and repair costs. Good tenant screening is cheap insurance. Here is the system professional property managers use.
1. Set published standards
Before you list, write down your criteria:
Publishing standards protects you under Fair Housing law — you are applying the same rule to everyone, not making subjective calls.
2. Collect a complete application
The application should capture:
3. Run credit + background
Use a tenant-screening service — TransUnion SmartMove, RentPrep, or Experian RentBureau. Costs $25–$45, usually paid by the applicant. Returns:
4. Verify income
Ask for the last 2 pay stubs. Divide annual gross income by 12. Rent should not exceed 1/3 of that number. If the tenant is self-employed, ask for last year's tax return.
5. Call previous landlords
This is the step most DIY landlords skip — and it is the most valuable. Call the landlord BEFORE the current one. (Current landlords sometimes give glowing reviews to get bad tenants out.) Ask:
If the previous landlord hesitates or says "I'd rather not comment," that IS the answer.
6. Fair Housing compliance
You legally CANNOT refuse to rent based on:
You CAN refuse based on:
Document every decision in writing. If you turn down 3 applicants, keep the applications on file for 2 years in case of a discrimination complaint.