Tenant screening is one of the most important steps in protecting your rental investment. A bad tenant can lead to costly damages, unpaid rent, and legal headaches. If you don’t have a solid screening process, you might find yourself paying out of pocket for repairs, lost income, or even eviction costs. Here are the top tenant screening mistakes that could end up costing you thousands—and how to avoid them.

1. Skipping the Background and Credit Check

A potential tenant may seem responsible, but without a background and credit check, you have no way of knowing their financial history or past behavior. A poor credit score, prior evictions, or a criminal record could be red flags. Always verify:
✔ Credit score & payment history
✔ Criminal background check
✔ Eviction history

💡 Tip: Use reputable tenant screening services to get accurate reports.

2. Not Verifying Employment & Income

If a tenant doesn’t have stable income, they may struggle to pay rent on time. Some applicants may even provide fake pay stubs or false employer information. Always:
✔ Call their employer directly to verify employment
✔ Ensure their income is at least 3x the monthly rent
✔ Request recent pay stubs or tax returns

3. Failing to Check Rental History & References

A previous landlord can give you valuable insight into a tenant’s behavior. Did they pay rent on time? Were there complaints from neighbors? Skipping this step could mean renting to someone with a history of missed payments or property damage. Always:
✔ Call past landlords for references
✔ Ask if they would rent to the tenant again
✔ Confirm there were no major lease violations

4. Ignoring Red Flags on the Application

If an application is incomplete, has conflicting information, or the tenant is in a rush to move in without proper documentation, these could be warning signs. Look for:
🚩 Inconsistent job or residence history
🚩 Unverifiable landlord or employer references
🚩 Refusal to provide necessary documents

💡 Tip: If something feels off, dig deeper before making a decision.

5. Not Following Fair Housing Laws

Discriminating against potential tenants—intentionally or unintentionally—can result in legal trouble and hefty fines. The Fair Housing Act protects against discrimination based on race, religion, gender, disability, family status, and national origin. To stay compliant:
✔ Use the same screening criteria for all applicants
✔ Avoid asking illegal or discriminatory questions
✔ Keep records of all applications and reasons for approval/denial

Final Thoughts

A bad tenant can cost you thousands in lost rent, damages, and legal fees. But with a strong screening process, you can protect your investment and find reliable renters. Take the time to check credit, verify employment, review rental history, and follow fair housing laws to avoid costly mistakes.

Need help finding the right tenants? Our professional property management company can handle the screening process for you—so you can rent with confidence. Reach out today!