How to Screen Tenants the Right Way

Income Verification (3x Rent Minimum)

The industry standard is 3x monthly rent in gross (pre-tax) income. For a Valrico property renting at $2,000/month, the applicant needs to show $6,000/month gross income — approximately $72,000/year.

Acceptable income documentation:

• ✓Two most recent pay stubs showing year-to-date earnings
• ✓Employment verification letter on company letterhead with salary, start date, and employment status
• ✓Most recent tax return (for self-employed applicants — look at Schedule C net income, not gross revenue)
• ✓Three months of bank statements (as a supplement, especially for self-employed or commission-based income)
• ✓Social Security or pension award letters (for retired applicants — this is stable, verifiable income)

For co-applicants (roommates or couples), you can combine income to meet the 3x threshold. Both parties should be on the lease and individually screened.

Credit Check (620+ Threshold)

A credit report tells you how the applicant handles financial obligations. Here is what to look for beyond the score:

• •Recent late payments. One late payment from 3 years ago is different from six late payments in the last 12 months. Look at the trend, not just the score.
• •Collections accounts. Medical collections are common and often not a strong predictor of rental behavior. Multiple utility or credit card collections are a bigger concern.
• •Debt-to-income ratio. Even with a 700 credit score, if the applicant has $3,000/month in car payments and student loans, that $2,000 rent payment may be a stretch.
• •Bankruptcy. A discharged bankruptcy from 5+ years ago with clean credit since is actually a positive signal — the person rebuilt. A recent filing is a red flag.

Rental History (Call Previous Landlords)

This is the step most self-managing owners skip — and it is the most important one. A credit report tells you how someone pays credit cards. A landlord reference tells you how they treat a home.

Call the last two landlords (not just the current one — a current landlord may give a glowing review to get rid of a problem tenant). Ask these specific questions:

1. Did the tenant pay rent on time? If not, how often was it late?
2. Did the tenant give proper notice before moving out?
3. Was the property returned in good condition?
4. Were there any lease violations or complaints from neighbors?
5. Would you rent to this person again?

If the previous landlord hesitates on question 5, that tells you everything you need to know.

Verify the landlord is real.Cross-reference the phone number and name with property records (Hillsborough County Property Appraiser website is free). Applicants occasionally list a friend as a "previous landlord."

Background & Eviction History

Run both a criminal background check and an eviction history search. Several tenant screening services (TransUnion SmartMove, RentPrep, MyRental) offer bundled reports for $25-$45 per applicant. Many landlords pass this cost to the applicant as an application fee.

• •Eviction history is the strongest predictor of future non-payment. One eviction in the last 5 years is a serious red flag. Two or more is a dealbreaker for most landlords.
• •Criminal background should be evaluated based on the nature and recency of the offense. See the fair housing section below for important limitations on how you can use this information.

Fair Housing Compliance

The Fair Housing Act (federal) prohibits discrimination based on seven protected classes. Florida law adds additional protections. Here is what you cannot consider when evaluating a tenant:

Familial status is the one that trips up landlords most often. You cannot refuse to rent to a family because they have children, limit the number of children, or restrict which bedrooms children can use. The only exception is legally designated 55+ communities.

Red Flags vs. Things You Cannot Consider

The Key: Consistent Criteria

The single most important fair housing practice is consistency. Before you list the property, write down your screening criteria:

• ✓Minimum credit score: 620
• ✓Minimum income: 3x monthly rent (verifiable)
• ✓No evictions in the past 5 years
• ✓Positive landlord references (last 2 landlords)
• ✓No violent felonies in the past 7 years

Apply these criteria identically to every single applicant. Document every decision. If you deny an applicant, provide the specific reason in writing (required under the Fair Credit Reporting Act if you used a credit report). Never deviate from your criteria based on how someone "seems" — that is where fair housing violations live.

Frequently Asked Questions