Here’s a question that keeps landlords up at night:
“How do I know if this applicant will be a good tenant?”
You’re looking at an application. Everything looks fine on paper. Good credit score. Steady income. Clean background check. They seem nice.
But you’ve been burned before.
The tenant who seemed perfect but stopped paying rent after three months. The one who trashed the property. The one who called 15 times in the first week over nonissues. The one who had “just one dog” that turned into three.
Every bad tenant costs you $7,000 to $20,000 in lost rent, legal fees, repairs, and vacancy.
After 19 years managing 250 properties in the Lansing area, I’ve screened thousands of applicants. I’ve made mistakes. I’ve learned expensive lessons. And I’ve refined a screening process that consistently delivers quality tenants.
Our results: – 80%+ tenant retention over 7 years – Zero evictions in the past 3 years Less than 2% vacancy rate – Average tenant stays 2-5 years
Our secret: A rigorous 4-step screening process that filters out 40-50% of applicants before they ever sign a lease.
In this post, I’ll walk you through our exact screening process, step by step, so you can replicate these results in your own properties.
Why Most Landlords Get Screening Wrong
Before we dive into the process, let’s talk about why screening fails.
Mistake #1: They Screen for Likability, Not Reliability
The trap: The applicant is friendly, well-dressed, and tells a great story about why they need the place.
The reality: Likability doesn’t pay rent. Reliability does. What we do instead: We screen for objective criteria only: income, credit, rental history, criminal background, and employment stability. Personality is irrelevant.
Mistake #2: They Make Exceptions
The trap: “Their credit is bad, but they have a good explanation.” “Their income is only 2.5x rent, but they seem responsible.” “They don’t have rental references, but they owned a home before.”
The reality: Every exception is a red flag you’re choosing to ignore.
What we do instead: Zero exceptions. If they don’t meet our criteria, we decline. No matter how nice they are or how desperate we are to fill the vacancy.
Mistake #3: They Don’t Verify Anything
The trap: The applicant says they make $60K/year. You take their word for it. The reality: People lie. A lot.
What we do instead: We verify everything. Income, employment, rental history, identity. If we can’t verify it, it doesn’t count.
Mistake #4: They Skip the Hard Questions
The trap: You don’t want to seem intrusive or difficult, so you avoid asking about evictions, criminal history, or why they’re leaving their current rental.
The reality: The questions you don’t ask are the ones that come back to haunt you. What we do instead: We ask every hard question. If they’re uncomfortable answering, that’s a red flag.
Mistake #5: They Rush to Fill the Vacancy
The trap: The property has been vacant for three weeks. You’re losing $1,500/month. An “okay” applicant applies. You approve them because you need someone NOW.
The reality: A bad tenant costs 5-10x more than a few weeks of vacancy.
What we do instead: We wait for the right tenant. A two-week vacancy costs $750. A bad tenant costs $10,000+. We’ll take the $750 loss every time.
The bottom line: Screening isn’t about filling vacancies quickly. It’s about protecting your investment long-term.
Our 4-Step Tenant Screening Process
Here’s the exact process we use for every applicant, every time, no exceptions.
Step 1: Pre-Qualification (Filter Out 30% Before They Apply)
Goal: Save time by filtering out unqualified applicants before they even submit an application.
Why this matters: If you’re spending 30 minutes reviewing applications from people who can’t afford the rent, you’re wasting time you could spend finding quality tenants.
What We Do:
A. Post Clear Qualification Requirements in Every Listing
Our listings state upfront:
“Qualification Requirements: – Household income must be 3x monthly rent (verifiable) – Credit score 600+ (no recent evictions or bankruptcies) – Positive rental history (landlord references required) – No violent criminal history – Maximum 2 pets ($35/ month per pet, breed restrictions apply) – Application fee: $50 per adult (non-refundable, covers background/credit check)
All adults 18+ must apply and pass screening. We do not make exceptions to these requirements.”
Why this works: – Unqualified applicants self-select out – Qualified applicants know exactly what to expect – Sets professional tone from the start – Reduces time wasted on unqualified leads
B. Pre-Screen on the Phone
When someone calls about the property, we ask:
**“Before we schedule a showing, let me make sure this property is a good fit. Our qualification requirements are: – Household income at least 3x the monthly rent. For this property, that’s $[amount]. Does your household meet that requirement? – Credit score of 600 or higher with no recent evictions. Does that work for you? – Positive references from previous landlords. Can you provide those? – No violent criminal history. Is that okay?
Great! Let’s schedule a showing.”**
If they hesitate or say “no” to any question:
“Unfortunately, this property won’t be a good fit based on our qualification requirements. I’d recommend looking for properties in a lower price range or working on [credit/ income/etc.] before applying. Best of luck in your search!”
Why this works: – Saves time (no showing for unqualified applicants) – Professional and respectful – Clear expectations – Filters out 20-30% of inquiries before showing
C. Require Application Fee Upfront Our policy: $50 application fee per adult, paid at time of application submission.
Why we do this: – Covers actual cost of background/credit checks – Filters out nonserious applicants – Demonstrates financial responsibility (if they can’t afford $50, they can’t afford rent)
Red flag: Applicant asks to waive the fee, pay later, or complains about the cost. Result of Step 1: 30% of inquiries are filtered out before we ever review an application.
Step 2: Application Review & Verification (Filter Out Another 20%)
Goal: Verify every piece of information on the application and identify red flags.
Why this matters: Applications are where people lie the most. If you don’t verify, you’re screening fiction, not facts.
What We Review:
A. Income Verification (3x Rent Rule – No Exceptions) Our requirement: Total household income must be at least 3x monthly rent, verifiable through pay stubs or tax returns.
What we require: – Employed applicants: Last 2 pay stubs + employer contact info Self-employed applicants: Last 2 years of tax returns (Schedule C or 1099s) Retired/disability applicants: Award letters or bank statements showing deposits What we verify: – Call employer directly (not the number on the application — we look it up) – Confirm employment dates, position, and salary – Ask: “Is [applicant name] currently employed? What is their gross annual salary? How long have they worked there?”
Red flags: – Income is exactly 3x rent (suspiciously perfect) – Pay stubs look altered (fonts don’t match, numbers don’t align) – Employer number goes to voicemail or personal cell – Employer is vague or won’t confirm details – Self-employed but can’t provide tax returns – Income is inconsistent month-to-month
Example:
Applicant: “I make $4,000/month. Here are my pay stubs.”
Us: Calls employer listed on application Employer: “She works here, but she’s part-time. She makes about $2,200/month.”
Result: Application declined. Income doesn’t meet 3x rent requirement. Why the 3x rule matters:
Rent should be no more than 33% of gross income. This ensures the tenant can afford rent plus utilities, food, transportation, and unexpected expenses.
If rent is 50% of income, they will struggle. And when they struggle, you don’t get paid.
B. Credit Check (600+ Score, No Recent Evictions) What we look for: – Credit score 600+ – No evictions in the past 7 years – No recent bankruptcies (within 2 years) – Debt-to-income ratio (total debt vs. income) – Payment history (late payments, collections, charge-offs)
Red flags: – Multiple evictions – Recent bankruptcy – Unpaid utility bills or medical collections (indicates financial instability) – Accounts in collections from previous landlords – Credit score below 600 – No credit history at all (not always disqualifying, but requires extra scrutiny)
What we do with borderline credit:
Scenario 1: Credit score is 580, but income is 4x rent, solid rental history, and good explanation for credit issues (medical debt, divorce).
Decision: Require co-signer or additional security deposit (1.5x rent instead of 1x). Scenario 2: Credit score is 580, income is barely 3x rent, and no rental references. Decision: Decline. Too many risk factors.
Why credit matters:
Credit history predicts behavior. Someone who doesn’t pay their bills won’t pay rent on time.
C. Rental History Verification (Most Important Step) Our requirement: Contact last 2 landlords (not current landlord — they might lie to get rid of a bad tenant).
What we ask previous landlords:
“Hi, I’m calling from Simply Live Property Management. [Applicant name] has applied to rent one of our properties and listed you as a previous landlord. Do you have a few minutes to answer some questions?
- Can you confirm [applicant] rented from you at [address] from [dates]?
- Did they pay rent on time every month?
- How many times were they late? By how many days?
- Did they ever bounce a check or have NSF fees?
- How did they maintain the property?
- Were there any noise complaints or issues with neighbors?
- Did they give proper notice when moving out?
- What condition was the property in at move-out?
- Did you return their full security deposit? If not, what was deducted and why?
- Would you rent to them again?”
The golden question: “Would you rent to them again?” If the answer is anything other than “Yes, absolutely,” that’s a red flag.
Red flags: – Previous landlord hesitates or says “no” – Paid rent late frequently (more than 2x in a year) – Property was damaged or dirty at move-out – Noise complaints or neighbor issues – Broke lease early without proper notice – Security deposit was withheld for damages – Previous landlord is evasive or won’t answer questions
What if they don’t have rental history? First-time renters (lived with parents, college dorms, etc.): – Require co-signer with good credit and income – Increase security deposit to 1.5x rent – Shorter lease term (6 months) with option to renew
Homeowners transitioning to renting: – Verify they owned the home (property records) – Check for liens, foreclosures, or short sales – Require mortgage payment history (if available)
D. Criminal Background Check What we check: – National criminal database – Sex offender registry – Local court records
What disqualifies an applicant: – Violent crimes (assault, domestic violence, weapons charges) – Sex offenses – Drug manufacturing or distribution (possession is case-bycase) – Arson or property destruction – Fraud or theft over $1,000
What doesn’t automatically disqualify: – Minor misdemeanors over 5 years old Traffic violations – Marijuana possession (legal in Michigan)
Why we do this:
We have a responsibility to other tenants and neighbors to ensure safety. One violent tenant can create liability and drive out good tenants.
E. Employment Verification What we verify: – Current employment status – Job title and salary – Length of employment – Likelihood of continued employment
Red flags: – Just started job (less than 3 months) – Frequent job changes (3+ jobs in past 2 years) – Employer won’t verify employment – Applicant is vague about job details
What we do:
Call employer directly: “Hi, I’m verifying employment for [applicant name] who has applied to rent a property. Can you confirm they’re currently employed, their position, and their gross annual salary?”
Result of Step 2: Another 20% of applicants are filtered out due to failed verification or red flags.
Step 3: Deep Dive Interview (Filter Out Another 10%)
Goal: Ask the hard questions and assess honesty, communication, and red flags that don’t show up on paper.
Why this matters: Some red flags only appear in conversation. This is where you catch lies, evasiveness, and inconsistencies.
What We Ask:
A. Why Are You Moving?
What we’re listening for: – Reasonable explanation (job relocation, need more space, buying a home) – Consistency with application details
Red flags: – Vague or evasive answer – Blames previous landlord (“They were terrible”) – Story doesn’t match application – “I’d rather not say”
B. How Many People Will Be Living Here?
What we’re listening for: – Matches application – All adults are on the lease Red flags: – More people than listed on application – Mentions “my cousin might stay for a while” – Tries to add occupants after approval
C. Do You Have Any Pets?
What we’re listening for: – Honest disclosure – Willingness to pay pet fees Red flags: – Says “no” but social media shows pets – “Just a small dog” (then shows up with a pit bull) – Asks if they can “bring the pet later” – Unwilling to pay pet deposit/ monthly fee
D. Have You Ever Been Evicted?
What we’re listening for: – Honest answer that matches background check Reasonable explanation if yes
Red flags: – Says “no” but background check shows eviction – Blames landlord entirely (no accountability) – Multiple evictions
E. Have You Ever Broken a Lease Early?
What we’re listening for: – Honest answer – Valid reason (job relocation, family emergency) – Gave proper notice and paid penalties Red flags: – Says “no” but previous landlord says otherwise – Broke lease without notice – Left property damaged
F. What’s Your Ideal Move-In Date?
What we’re listening for: – Reasonable timeline (2-4 weeks) – Flexibility Red flags: – Needs to move in tomorrow (why the rush?) – Vague or uncertain (“whenever”) – Pressures you to rush the process
G. How Do You Handle Maintenance Issues?
What we’re listening for: – Understands the process (portal, emergency line) Reasonable expectations Red flags: – Expects immediate response to everything – Wants your personal cell number – History of excessive maintenance requests
H. Can You Provide Three Personal References?
What we’re listening for: – Willingness to provide references – References are not family members Red flags: – Hesitates or refuses – Only provides family references – References don’t answer or give vague responses
Result of Step 3: Another 10% of applicants are filtered out due to red flags in the interview.
Step 4: Final Decision & Lease Signing (The Last 5%)
Goal: Make the final decision, set expectations, and ensure a smooth move-in.
Why this matters: Even after all the screening, the lease signing is your last chance to set the tone and catch any final red flags.
What We Do:
A. Review All Information One More Time Before approving, we review: – Income verification ✓ – Credit report ✓ – Rental references ✓ – Criminal background ✓ – Employment verification ✓ – Interview notes ✓
If anything doesn’t add up, we decline.
B. Make the Decision Approve: All criteria met, no red flags, strong references.
Conditional Approve: Minor concerns (borderline credit, first-time renter) — require cosigner or increased deposit.
Decline: Failed to meet one or more criteria, red flags, or failed verification. How we communicate the decision:
Approved: “Congratulations! Your application has been approved. Your move-in costs are: First month’s rent (X ), securitydeposit(X), and pet deposit ($X if applicable) = Total $X. We’ll send the lease for signing via email. Once signed and move-in costs are paid, we’ll schedule your move-in walkthrough.”
Declined: “Thank you for your application. Unfortunately, we’re unable to approve your application at this time. Per the Fair Housing Act, we’re required to provide the reason for denial. [Reason: income below 3x rent / negative rental reference / failed background check]. We wish you the best in your housing search.”
C. Lease Signing & Expectation Setting What we cover at lease signing: – Review every section of the lease – Explain maintenance process (portal, emergency line, flood/fire/life-threatening only) – Provide tenant handbook and emergency guide – Set expectations for communication, rent payment, inspections – Answer all questions – Get signatures
Red flags at lease signing: – Tries to negotiate lease terms – Doesn’t read the lease Asks to move in before paying – Brings up new information (“Oh, I forgot to mention my boyfriend will be living here too”)
If red flags appear at lease signing, we stop the process and reassess.
D. Move-In Process What we require before move-in: – Signed lease – First month’s rent (certified funds) Security deposit (certified funds) – Pet deposit if applicable (certified funds) – Proof of renter’s insurance
Move-in walkthrough: – Walk through property together – Document condition with photos – Show them how to use appliances, thermostat, breaker box – Provide keys and access codes – Review tenant portal and maintenance process – Answer questions Result of Step 4: The final 5% of applicants are filtered out due to last-minute red flags or failure to complete move-in requirements.
The Numbers: Why This Process Works
Our screening results over 19 years:
Applications received: 100% Filtered out in Step 1 (pre-qualification): 30% Filtered out in Step 2 (verification): 20% Filtered out in Step 3 (interview): 10% Filtered out in Step 4 (final decision): 5% Approved and moved in: 35% That means we decline 65% of applicants.
Why this is good:
Bad tenant cost: $7,000 – $20,000 (lost rent, legal fees, repairs, vacancy) Screening cost: $50 application fee + 2 hours of time = $150 total ROI of rigorous screening: Avoiding one bad tenant pays for 50-100 screenings Our tenant quality results: – 80%+ retention over 7 years – Zero evictions in past 3 years – Less than 2% vacancy rate – Average tenant stays 2-5 years – 4.9-star Google rating The math:
Scenario A: Rigorous Screening (Our Process) – Screen 20 applicants – Approve 7 (35%) – 6 become great long-term tenants (85% success rate) – 1 is mediocre but pays rent on time – 0 evictions – Cost: 20 screenings × $150 = $3,000
Scenario B: Minimal Screening (Most Landlords) – Screen 20 applicants – Approve 15 (75%) – 10 are okay tenants (67% success rate) – 3 are problem tenants (late rent, complaints, damage) – 2 require eviction – Cost: 20 screenings × $50 = $1,000 + 2 evictions × $12,000 = $25,000
Rigorous screening saves $22,000 per 20 applicants.
Common Objections to Rigorous Screening
Objection #1: “I can’t afford to be this picky. I need to fill the vacancy.” Response: You can’t afford NOT to be picky. One bad tenant costs more than 6 months of vacancy.
The math: – 1 month vacancy = $1,500 lost rent – 1 bad tenant = $12,000+ in losses
Would you rather lose $1,500 or $12,000?
Objection #2: “This process takes too long. I’ll lose good applicants.” Response: Our average screening takes 3-5 days. Good applicants will wait. Bad applicants won’t.
If an applicant isn’t willing to wait a few days for thorough screening, that’s a red flag.
Objection #3: “I don’t want to seem too strict or difficult.”
Response: Professional screening isn’t “difficult” — it’s responsible property management.
Good tenants appreciate thorough screening because it means you’re protecting them from problem neighbors.
Objection #4: “What if I can’t verify everything?” Response: If you can’t verify it, it doesn’t count.
No verification = decline the application. No exceptions.
The Fair Housing Act: What You Must Know
Critical: You must screen consistently and fairly to comply with Fair Housing laws. Protected classes (you CANNOT discriminate based on): – Race – Color – National origin – Religion – Sex (including sexual orientation and gender identity) – Familial status (children under 18) – Disability
What this means: – Apply the same criteria to every applicant – Document your screening process – Provide written reason for denial – Never ask about protected class status Safe screening criteria: – Income (3x rent requirement) – Credit history – Rental history – Criminal background (with limitations) – Employment stability
What you CAN’T ask: – Are you married? – Do you plan to have children? – What country are you from? – What church do you attend? – Do you have a disability?
If you’re unsure, consult a real estate attorney.
The Tools You Need
To replicate our screening process, you need:
- Standardized application form – Income, employment, rental history, references, criminal disclosure – Authorization to run background/credit check – Fair Housing disclosure
- Background check service – We use [service name] for credit, criminal, and eviction reports – Cost: $30-50 per applicant
- Verification checklist – Income ✓ – Employment ✓ – Rental references ✓ – Criminal background ✓ – Credit report ✓
- Interview question script – Ensures consistency across all applicants – Documents responses
- Decision criteria matrix – Objective scoring system – Removes bias and emotion from decision
The Bottom Line
Screening isn’t about filling vacancies. It’s about protecting your investment. Our 4-step process: 1. Pre-qualification (filter 30%) 2. Application review & verification (filter 20%) 3. Deep dive interview (filter 10%) 4. Final decision & lease signing (filter 5%)
Result: 65% of applicants are declined. 35% are approved. 85%+ become great longterm tenants.
The payoff: – 80%+ retention over 7 years – Zero evictions in 3 years – Less than 2% vacancy – Tenants stay 2-5 years on average The reality: One rigorous screening process prevents years of headaches and thousands in losses.
Our Track Record
At Simply Live, we’ve screened thousands of applicants over 19 years:
Our results: – 250 properties managed – 80%+ tenant retention over 7 years – Zero evictions in the past 3 years – Less than 2% vacancy rate – 4.9-star Google rating Our secret: We treat screening as seriously as we treat property maintenance.
Ready to Stop Gambling on Tenants?
If you’re tired of problem tenants, late rent, and costly evictions, let’s talk.
Free 20-minute consultation: We’ll discuss how our screening process can protect your investment.
We serve rental property owners in the Lansing tri-county area. Every tenant is screened through our rigorous 4-step process before they ever receive keys.
Good tenants aren’t lucky. They’re screened.
Let us show you how.
Simply Live LLC | Lansing Tri-County Property ManagementPhone: [ (517) 258-0349] | Serving rental property owners in Michigan’s tri-county area for 19 years
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