Sample Criteria for Accepting or Rejecting a Rental Applicant

By: Paul Jenney, Compliance Officer with TenantTracks

This is not intended to Replace Legal Advice, we suggest you consult your own attorney when creating your tenant selection criteria

1. All information on the application is correct; any factual errors are an automatic rejection.

2. The application is signed and dated and has authorized the property owner to conduct a background check.

3. Any criminal record of drug dealing, drug trafficking, manufacture, or distribution are an automatic rejection.

4. Any record of prostitution, illegal gambling, or any other crime that would violate State laws regarding illegal use of a rental property are an automatic rejection.

5. Any records of criminal activity that that property owner would deem puts the property, its owner or other residents at risk, including, but not limited to, sex offences, violations of the US Patriot Act covered by the Office of Foreign Asset Control or other international judicial authorities, arson, domestic violence, any other crimes of violence, weapons violations, etc. Criminal records may be reported indefinitely under the FACTA update of 2003.

6. Eviction History. How long ago is acceptable? How many evictions? The reason for the eviction? The FCRA only allows TenantTracks to report eviction records for seven (7) years. (Create your own policy and stick with it)

7. Landlord History. TenantTracks may only report information obtained from owners and management companies for seven (7) years including notices to quit, noise issues, cash for keys, etc. How many? How recent?...again; (Create your own policy and stick with it) the rental market tanks and you lower your score requirement to attract more potential renters (and accept more risk) and vice versa, if you get more applicants, you raise the score requirement.

7a. Landlord References. If they are a career renter, I would ask for the last three at minimal, and then call the second two. They have nothing to lose by giving the truth, but grill them about the information, last addresses they gave on that application (might be hiding something), and did they pay the rent on time/in full/how many late-payments, any problems. This may seem like “Landlording 101”, but this is helpful information on how they will perform as your tenants.

8. If your property is carpeted, do they own a vacuum cleaner? It's a strange criterion, but you want to protect your investment so it IS a fair question to ask.

9. Credit History. What is the minimum Vantage Score to be accepted? This will vary by property. We recommend that the criteria is signed and dated and can be updated as market conditions change e.g.

9a. If you are accredited to receive a full credit report, then how many thirty (30), sixty (60), ninety (90) day late-payments do you allow? How many collection accounts? How many charged off accounts (unpaid debt)

10. IF employed, how long should they have been there? Can you independently confirm this? I recommend calling the HR Department and faxing/emailing a release to provide you with the information, as an alternative you can ask for a copy of the applicant’s last tax return, if not employed, ask for proof of income.

Have a potential tenant you need screened? Visit tenanttracks.com for all your tenant screening needs!