(The Step-by-Step Process That Actually Protects Your Cash Flow & Property)
Finding a great tenant isn’t luck — it’s a repeatable system. Do it right and you’ll rarely deal with late rent, evictions, or property damage. Do it wrong and one bad tenant can cost you thousands.
Here’s the exact process veteran DIY landlords use today to attract serious applicants and pick winners — almost entirely for free or applicant-paid.
1. Define Your Minimum Standards Up Front (Write These Down)
Never bend these once they’re set — consistency is your legal shield.
- Income: Gross monthly income at least 3× rent (some landlords go 2.5× in expensive markets, 3.5× in cheaper ones)
- Credit: No open collections over $1,000, no recent bankruptcies (past 5–7 years)
- ResidentScore / Credit Score: 620+ preferred (TransUnion’s ResidentScore is better than FICO for predicting evictions)
- Eviction History: Zero evictions or judgments in the last 7–10 years
- Criminal Background: Automatic denial for violent felonies or recent felonies; case-by-case on non-violent
- Rental History: Positive references from at least the last two landlords (no “skipped,” “owed money,” or “would not re-rent”)
Quick income cheat sheet: $1,500 rent → $4,500/month minimum $2,000 rent → $6,000/month minimum $2,800 rent → $8,400/month minimum
2. Require a Completed Rental Application (Never Skip This)
Free templates are everywhere (or generate one instantly with most AI lease tools). Require every adult to fill one out completely — no exceptions.
Must-include questions:
- Current and previous addresses (last 3–5 years)
- All income sources + proof (pay stubs, tax returns, offer letter)
- Employer name + phone
- Previous landlord names + phone numbers
- Explanation of any credit/eviction/criminal issues
3. Run Professional Screening — Have the Applicant Pay
The best services let the applicant pay directly (you stay FCRA-compliant and spend $0).
Top services in 2025:
- TransUnion SmartMove → Our #1 pick (applicant pays ~$40–$47, includes ResidentScore that beats regular credit scores at predicting evictions)
- Avail (by Realtor.com) → Fast, applicant-paid
- Cozy (now part of Apartments.com) → Free for landlords in some cases
- MyRental → Solid budget option
Always pull: Credit report + score, nationwide criminal, nationwide eviction history.
4. Actually Call the References (This Catches Liars)
- Call current landlord (they’ll often be honest)
- Call previous landlord (the one before current — current might lie to get rid of a bad tenant)
- Verify employment and income (HR or pay stubs)
Red-flag answers:
- “I’d rather not comment”
- “You should talk to the property manager” (when they claim they were the manager)
- Long pauses or evasiveness
5. Meet the Applicant In Person or Via Video
A 10-minute Zoom or in-person walk-through tells you more than any report. Look for:
- Do they show up on time?
- How do they treat your property during the showing?
- Do they ask smart questions or just complain about price?
6. Make the Decision & Document Everything
Use a simple scoring system or checklist. Approve / Conditional Approve / Deny. Send written adverse action notices if you deny based on credit or criminal (required by law).
Bonus: Red Flags That Should Automatically Disqualify Most Applicants
- Lying on the application
- Can’t provide proof of income
- Previous landlord says “do not rent”
- Multiple recent moves (every 6–12 months)
- Rude or aggressive during showing
- Insists on moving in same-day without screening
Final Thoughts
Screening costs you almost nothing when the applicant pays, yet it’s the single best investment you’ll ever make in your rental business. One bad tenant can easily wipe out a year (or more) of profit.
Stick to your written standards, verify everything, and never rush just to fill a vacancy. The right tenant is worth waiting an extra week for.
