Raising the Tenant Standard

by Sandra Baker

"....So, should I rent to them or not?" If I had a chocolate bar for every time we are asked that question, I could open a candy store! The answer is—You are the only one who can possibly decide! Every property is unique, and each landlord has their own requirements. However, after almost two decades in the screening business, we have learned a few things about what makes a good tenant. As a result, we have developed a Sample Resident Acceptance Policy that many prospective landlords find helpful in setting their own standards.

First of all, you should know ahead of time exactly what your standards are for each property. Decide what would definitely disqualify a tenant and STICK TO IT!! It might even be a good idea to post the policy somewhere, or hand it to applicants when they apply. This "pre-screening" will save you a lot of time and trouble. If you turn down EVERYONE on the same basis (and the basis you are using is legal), you have less chance of being accused of discrimination in the future.

So what standards should you set? Well, here are a few examples of the things that might immediately disqualify a candidate:

any open bankruptcy (to which new claims can still be added)
any eviction or Unlawful Detainer action
any collection filed by a property management company
any income level less the 3.5 times the rent of the unit applied for.

We call these "terminals" because they have the ability to kill the whole deal right away. You may also want to decline someone with three or more "negatives." These are less serious things, but may add up to a real problem when you look at the overall picture.

They include:

  • 30-, 60- or 90-day late payments
    on accounts
  • collections
  • judgments and liens

  • improper notice to landlord

  • temporary employment

  • late rent payments.

Setting a reasonable tenant standard can simplify your screening process tremendously. It has the potential to save you time, money and major headaches down the road.If you would like a copy of Research Inc.'s sample Resident Acceptance Policy, click here. And remember, you can get a detailed credit profile from us within a few minutes by phone or fax. Then you'll have all the information you need for your decision right at your fingertips.