Finding the right tenant is the single most important thing a landlord can do. A great tenant pays on time, maintains the property, and stays long-term. A bad tenant can cost you months of lost rent, thousands in damages, and significant legal fees.
Part 1: Screening and Selecting the Right Tenant
Setting Your Screening Criteria
Before advertising, define your minimum criteria in writing. Apply them consistently to every applicant — inconsistent screening can expose you to fair housing complaints.
Standard minimum criteria:
- Monthly income at least 2.5–3x the monthly rent
- Credit score of 620 or higher
- No evictions in the past 5–7 years
- No felony convictions related to property damage, theft, or violence
- Positive references from at least 2 prior landlords
- Verifiable employment or income source
The Application Process
Require a complete written application including:
- Full legal name, date of birth, Social Security number
- Current and previous addresses for the past 5 years
- Current employer, position, length of employment, and income
- Previous landlord contact information
- Personal references (non-family)
- Authorization to run credit and background checks
- Disclosure of pets, vehicles, and number of occupants
Credit Check — What to Look For
Green flags:
- Score above 700
- No collections or charge-offs
- Low credit utilization
- Long credit history with consistent payments
Yellow flags (investigate further):
- Score 580–650 — ask for additional deposit or co-signer
- Medical collections — often unavoidable, less predictive of rental behavior
- Student loans in repayment — not necessarily a red flag
Red flags:
- Prior eviction on record
- Utility collections (suggests non-payment of bills)
- Multiple recent late payments
- Bankruptcy in the past 2 years
- High debt-to-income ratio
Background Check — What to Look For
Run a full background check through a reputable tenant screening service such as TransUnion SmartMove, RentSpree, or similar.
- Eviction history — any prior eviction is a serious red flag
- Criminal history — review carefully and apply criteria consistently
- Sex offender registry
- Prior property damage claims
Income Verification
Acceptable proof of income:
- Last 2–3 pay stubs
- Last 2 years of tax returns (for self-employed applicants)
- Bank statements showing consistent deposits
- Offer letter from a new employer
- Social Security or disability award letter
- Pension or retirement income documentation
The 3x rule: Monthly gross income should be at least 3x monthly rent. For a $1,500/month unit, the applicant should earn at least $4,500/month gross.
Landlord Reference Checks
Always call prior landlords — don’t just accept written references.
Questions to ask:
- Did they pay rent on time consistently?
- Did they give proper notice before moving out?
- Did they maintain the property in good condition?
- Were there any noise complaints or issues with neighbors?
- Did you have to make any deductions from their security deposit?
- Would you rent to them again? (The most telling question)
Warning signs:
- Prior landlord is reluctant to answer or gives vague responses
- Applicant cannot provide contact information for a previous landlord
- References are friends or family members posing as landlords
Fair Housing — Know the Law
Federal fair housing law prohibits discrimination based on race, color, national origin, religion, sex, familial status, and disability. Many states and cities add additional protected classes.
- Apply the same criteria to every applicant
- Document your screening process and decisions
- Decline applicants based on objective criteria only
- Consult a local attorney if you’re unsure about any screening practice
Part 2: Security Deposits and Move-In Funds
How Much to Collect
Standard move-in funds typically include:
- Security deposit: 1–2 months’ rent (check your state’s maximum)
- First month’s rent
- Last month’s rent (optional but common)
- Pet deposit: $200–$500 per pet (one-time, refundable)
- Pet rent: $25–$75/month per pet (ongoing, non-refundable)
- Parking deposit (if applicable)
Security Deposit Best Practices
At move-in:
- Conduct a thorough written move-in inspection with the tenant present
- Document every existing imperfection with photos and video (date-stamped)
- Have the tenant sign the move-in inspection form
- Provide the tenant a copy
At move-out:
- Conduct a move-out inspection within 24 hours of tenant vacating
- Compare condition to the move-in inspection report
- Document all damage with photos
- Provide an itemized statement of deductions within your state’s required timeframe
What you CAN deduct:
- Damage beyond normal wear and tear
- Unpaid rent
- Cleaning costs if unit is left in poor condition
- Unreturned keys or access devices
- Lease break penalties per the lease agreement
What you CANNOT deduct:
- Normal wear and tear (faded paint, minor carpet wear, small nail holes)
- Pre-existing damage documented at move-in
- General cleaning if the unit was left reasonably clean
Part 3: Who Pays for What
Utilities
Typically included in rent (landlord pays):
- Water and sewer (most common in multi-family properties)
- Trash removal
- Common area electricity
- Gas for common areas or shared heating systems
Typically paid by tenant:
- Electric (for their unit)
- Gas (for their unit, if separately metered)
- Internet and cable
- Phone
Lawn Care and Landscaping
Single-family homes — tenant typically responsible for:
- Lawn mowing (define frequency in lease)
- Leaf removal
- Weeding of beds
Landlord typically responsible for:
- Tree trimming and removal
- Fertilizing and lawn treatments
- Irrigation system maintenance
Snow and Ice Removal
Single-family homes — tenant typically responsible for:
- Sidewalk and walkway shoveling within 24 hours of snowfall
- Driveway clearing
- Ice melt/salt application on walkways and steps
Landlord typically responsible for:
- Roof snow removal (structural concern)
- Common area snow removal in multi-family buildings
Maintenance and Repairs
Landlord is always responsible for:
- Keeping the property structurally sound (roof, foundation, walls)
- Heating systems — ensuring functional heat
- Plumbing — pipes, water heater, major plumbing repairs
- Electrical systems — panel, wiring, outlets
- Appliances provided with the unit
- Pest control for infestations
- Smoke and carbon monoxide detectors
Tenant is typically responsible for:
- Changing HVAC filters (typically every 1–3 months)
- Replacing light bulbs
- Keeping drains clear
- Minor repairs under a defined dollar threshold
- Damage caused by tenant, family members, or guests
- Reporting maintenance issues promptly in writing
Part 4: Landlord Best Practices
Building a Positive Landlord-Tenant Relationship
- Respond to maintenance requests within 24 hours
- Be professional, consistent, and fair in all communications
- Use written communication for all important matters
- Conduct periodic inspections with proper notice
- Raise rent gradually and with proper notice
Insurance Every Landlord Should Carry
- Landlord/Dwelling insurance — covers the structure and your liability
- Loss of rent coverage — covers lost rental income if unit becomes uninhabitable
- Umbrella policy — additional liability coverage above your