Can a landlord reject a tenant based on credit score?

Yes, you can set a minimum credit score as part of your screening criteria, as long as you apply it consistently to all applicants. However, you cannot use credit scores as a proxy for discriminatory screening. Set a clear minimum threshold in your written screening policy and apply it uniformly.

How much does tenant screening cost?

Comprehensive tenant screening typically costs $25–$50 per applicant. This includes credit report, background check, eviction history, and income verification. Many landlords charge an application fee that covers the screening cost. The fee must be reasonable and related to actual screening expenses.

What credit score should landlords look for?

There's no universal minimum, but most landlords set the bar at 600–620 for standard rentals. Higher-end properties often require 650+. Look beyond the number: a 580 score with a clean rental history and steady income may be a better tenant than a 750 score with recent evictions.

Can I run a background check without the tenant's permission?

No. Under the Fair Credit Reporting Act, you must obtain written consent before running any consumer report, including credit, background, and eviction checks. Most screening services include a consent form as part of their application process.

What should I do if I find something concerning in a screening report?

First, verify the information is accurate — reports can contain errors. If you decide to reject the applicant based on the report, you must follow FCRA adverse action procedures: provide written notice, identify the screening company, and inform the applicant of their right to dispute inaccurate information.

Tenant Screening 101: How to Find Great Tenants

A bad tenant will cost you more than a vacant unit. Unpaid rent, property damage, eviction proceedings, and the stress of constant conflict can easily run into five figures. Tenant screening is your first and best line of defense — and it's not complicated once you know what to look for and how to stay legal.

Why Screening Matters

The numbers tell the story. An eviction costs an average of $3,500–$10,000 in legal fees, lost rent, and property damage. A thorough background check costs $25–$50. That's a 100:1 return on prevention. Yet many new landlords skip screening because they're in a hurry to fill a vacancy or because an applicant seems nice. Don't be that landlord.

The Four Pillars of Tenant Screening

1. Credit Check

A credit report tells you how a person handles financial obligations. You're not looking for a perfect score — you're looking for patterns:

Payment history: Late payments, collections, and charge-offs indicate someone who doesn't prioritize bills. A single late payment years ago is forgivable. A pattern of chronic lateness is not.
Outstanding debts: High debt-to-income ratios mean the tenant may struggle to pay rent if anything else goes wrong.
Public records: Bankruptcies, tax liens, and civil judgments are red flags, especially if they're recent.
Credit score: Set a minimum threshold in your written screening policy (typically 600–620 for standard rentals) and apply it to every applicant.

Look beyond the number

A 580 score with a clean rental history and steady income might be a better tenant than a 750 score with recent evictions. Credit scores are a data point, not a decision.

2. Background Check

Criminal background checks reveal safety risks. Here's how to handle them properly:

Be consistent. Run the same background check on every applicant. Selectively checking some applicants and not others is a fair housing violation.
Consider relevance. Not every criminal record is relevant to tenancy. A 20-year-old misdemeanor may be irrelevant. A recent violent crime conviction may be directly relevant to neighbor safety.
Follow state laws. Some states restrict how far back you can look (typically 7 years) or prohibit using arrest records (only convictions). Know your local rules.
Give context. If you deny based on a criminal record, some jurisdictions require you to give the applicant a chance to explain or provide rehabilitation evidence.

3. Income Verification

Income verification confirms the tenant can actually afford the rent. The standard benchmark is gross monthly income of at least 3x the rent. Here's how to verify:

Pay stubs. Request the last 2–3 pay stubs. Check that the employer name matches the application.
Employment verification. Call the employer to confirm the tenant works there, their position, and their start date. You don't need to ask about salary — the pay stubs handle that.
Tax returns. For self-employed applicants, request the last 2 years of tax returns. Look at Schedule C income, not just gross revenue.
Bank statements. Request 2–3 months of bank statements showing regular deposits that match stated income.

Watch out for fake documents

Pay stubs and bank statements can be fabricated. Look for inconsistencies: formatting that doesn't match the employer's style, amounts that don't add up, or bank statements with no regular expenses. When in doubt, verify directly with the employer.

4. Rental History

Previous landlord references are among the most valuable screening tools. Call at least the last two landlords:

Did the tenant pay on time? This is the most important question.
Was the unit left in good condition? Compare the move-in and move-out conditions.
Would you rent to this person again? If the answer is anything other than an enthusiastic "yes," that's telling.
Were there any complaints from neighbors? Noise, unauthorized occupants, policy violations.

One important tip: call the previous landlord, not the current one. A current landlord who wants a problem tenant out may give a glowing reference just to be rid of them. A previous landlord has no incentive to sugarcoat.

Red Flags That Should Stop You

Some screening findings are dealbreakers regardless of context:

Eviction history. Even one eviction, especially within the last 5 years, is a serious red flag. People don't get evicted by mistake.
Income below 3x rent. If the math doesn't work, it doesn't work. A tenant who can't afford the rent will become a problem tenant.
Recent bankruptcy. It's not the bankruptcy itself — it's the pattern of financial distress that led to it.
Inconsistent application information. Different names, addresses that don't match, employment that can't be verified. If they're lying on the application, they'll lie to you about rent.
Refusal to consent to screening. If an applicant won't sign a consent form, end the conversation. Legitimate tenants have nothing to hide.
Landlord references that can't be verified. "My landlord is out of the country" or disconnected phone numbers are suspicious.

FCRA Compliance: What You Must Do

The Fair Credit Reporting Act (FCRA) governs how you use consumer reports in tenant screening. Violations carry penalties up to $1,000 per violation plus actual damages. Here's what compliance looks like:

Before you screen

Get written consent from every applicant before running any consumer report
Provide a standalone disclosure that a consumer report will be used — it can't be buried in the lease
Use a reputable screening service that complies with FCRA requirements

If you reject an applicant

Send an adverse action notice within a reasonable timeframe
Identify the screening company you used
Inform the applicant of their right to dispute inaccurate information
Provide the credit score (if one was used) and the factors that affected it

Fair Housing Act

The Fair Housing Act prohibits discrimination based on race, color, religion, national origin, sex, familial status, or disability. Many states add additional protected classes. To stay compliant:

Use the same screening criteria for every applicant. Document your criteria in writing (minimum credit score, income requirements, rental history standards) and apply them uniformly.
Never ask about protected characteristics. No questions about family plans, religion, national origin, or disability status during the application process.
Keep records. Save every application, screening report, and decision for at least 3 years. If you're ever accused of discrimination, your documentation is your defense.
Train yourself. Take a free fair housing course online. HUD offers them, and most local apartment associations do too.

Building a Screening Policy

Write down your screening criteria before you receive any applications. A clear, written policy protects you from fair housing claims and makes decisions objective:

Minimum credit score (e.g., 600)
Minimum gross monthly income (e.g., 3x rent)
No evictions in the past 7 years
No felony convictions in the past 5 years (or whatever threshold you determine is appropriate)
Positive rental references from last 2 landlords
Valid government-issued ID

Apply these criteria to every applicant without exception. If someone doesn't meet the criteria, you can decline them — and you can document exactly why. This is your strongest protection against discrimination claims.

Screening isn't about being picky or unreasonable. It's about protecting your investment, your other tenants, and yourself. A thorough screening process takes 2–3 days and saves you from months of headaches. Set your criteria, run every check, and make decisions based on facts. That's how you find great tenants.