Tenant Screening Questions: What to Look for in a Background Check

When letting out a home, it pays to be careful. Here are some things you can ask potential renters to help you decide what to do.

What you will find out:

1. How long have you lived where you are now, and why do you want to move?
2. Have you ever broken a rental deal or been evicted?
3. Is your rent at least three times what you make each month?
4.Do you own any pets?
5. How many people will live in your home?
As an owner, you need to look out for your financial and legal interests.

When renting out a home, it pays to be careful, because picking the wrong roommate can cost you. At the very least, you want to know that they will pay the full rent on time. You also want to avoid the cost and trouble of being kicked out, as well as expensive fixes from damage or carelessness.

When you post your rental offering, which should say when it is open, if pets or smoking are allowed, how many people can live there at once, and other key terms, the tenant screening process actually starts. The more questions you can answer right away, the more likely you are to get rid of roommates who might not be a good fit.

Have people who want to rent from you fill out a Rental Application when they contact you. With the information you get from the application, you will be able to do a credit check and a check of their crime history. You can also ask a current or past owner for a reference.

Here are some important things you can ask potential renters to help you decide what to do.

1. How long have you lived where you are now, and why do you want to move?

There are many reasons why someone might need a new place to live, but the answer can tell you a lot about them. For example, it is not a good sign if a potential roommate says, “I am moving because I did not like my landlord.” Try to find answers like “I am changing jobs” or “We need more space.”

If they have only been in their current home for a short time or there are other signs that they move around a lot, it could be a sign that they are bad renters. But you should not just assume that, and you might need to look for other signs that back up this claim. For example, if they do not want to give owner references or are unclear about why they are moving, that could be a red flag.

2. Have you ever broken a rental deal or been evicted?

Again, the situation is key. There are plenty of good reasons to break a lease, such as moving for a new job or to take care of an old parent. If they say yes and give you a reason that seems reasonable, you might want to ask them how they broke the deal. If you can talk to the owner whose lease was broken, that would be even better.

It is much easier to find out if a potential roommate has ever been kicked out. If they say yes, you may want to move on to the next application in most situations. But this should not always be a reason not to rent to someone. They might not have been able to pay the rent because they had a financial problem and did not have enough money. If they say no, they have not been kicked out. Just make sure you check this when you do the background check.

3. Is your rent at least three times what you make each month?

Late rent payments and other problems linked to rent are one of the biggest worries of renters. The general rule is that a tenant’s income should be three times the amount of rent, which may not always be possible in cities like San Francisco and New York where rents are high. If they can show proof (like pay stubs) that they have a steady monthly income that is at least three times the rent, they should be able to pay you in full every month.

As part of your background check, you should look at their credit report, but asking them right away if you can check their credit could also tell you something (especially if they say no or try to avoid the question).

4.Do you own any pets?

If you do not allow pets, you should still be ready for applicants who say they have “the world’s sweetest kitten” or a pet fish that they think should be spared. Even if they have a good reason for why their pet will not be a problem, making an exception could make other renters angry, set a bad example, or fail in some other way. For example, that fish tank, which does not look dangerous, could break and flood the unit.

If you do accept pets, make sure you have a clear and consistent policy about them and add it to the lease as a Pet Addendum. You could also ask people who want to rent from you to fill out a Pet Application Form. Since dogs may cause more wear and tear on the rental or cause other problems, you may decide to charge an extra pet deposit and make it clear what that deposit covers (damage, pet stains, etc.).

Keep in mind, though, that not all animals, even dogs, cats, and rats, are pets. A person who wants to rent may have a service animal or an animal that helps with mental needs. Some dogs, for example, are taught to notice changes in their owner’s blood chemistry and tell them they need to check their blood sugar levels. State housing laws may require owners to accept service animals, so make sure you know what those laws are before you start looking at applications. If you are not sure, talk to a lawyer.

5. How many people will live in your home?

Both your lease and your rental ad should say how many people can live in the place. Aside from the extra cost of services (if you are paying for water, power, etc.), extra wear and tear, and extra cars (especially if parking is limited), it may be against the law to have more people in a unit than it was built for.

Tenants have lives outside of the apartment, so you should expect them to have friends and maybe even overnight guests from time to time. But you may want to keep a strict cap on the number of guests for the same reason you want to make sure no one stays too long.

In addition to the number of people who can live there, your lease should also make it clear how guests are treated. Leases may say, for example, that guests who stay at the property for more than two weeks in any six-month period are considered renters and must fill out an application and pay more rent (if they are accepted). This can protect you both financially and from being held responsible for what the long-term friend does. It is up to you how closely you follow this rule, but you should do it the same way every time.
As an owner, you need to look out for your financial and legal interests.

It is important to be clear, fair, and firm when screening renters to protect your property and renting income. Remember that asking these questions is just the beginning. Once you have found the right renter, make sure you do those background checks, call their contacts, check their paystubs, and put everything in writing with a Lease Agreement. If you have more questions about renter screening or other law issues related to renting out a home