Tenant Screening Criteria: What Landlords Should Document Before Reviewing Applicants

Most small landlords screen tenants the same way they've always done it — gut check, a quick look at the application, maybe a credit pull if they remember. No written criteria. No standard process. Different bar for different applicants.

That informality is a liability. Under the Fair Housing Act, inconsistent screening criteria — even unintentional ones — can look like discrimination. The defense isn't “I treat everyone the same.” The defense is documentation.

Here's what to write down before you review your first application.

Why Written Screening Criteria Matter

The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, and disability. Many states add additional protected classes — source of income, age, sexual orientation, and more.

This doesn't mean you have to approve every applicant. It means you have to apply the same standards to every applicant. A credit score minimum, an income threshold, an eviction policy — these are legitimate business criteria. Applying them differently to different applicants is where landlords get into trouble.

Written criteria do two things: they force you to decide your standards upfront (rather than improvising per applicant), and they give you documentation that your decisions were based on objective business reasons, not applicant characteristics.

The 5 Criteria Every Landlord Should Set in Writing

These aren't the only criteria you can use — but these five cover the vast majority of rental screening decisions and are easy to document and apply consistently.

1. Income threshold

The most common standard is 3x monthly rent in gross monthly income. At $1,200/month rent, that means an applicant needs to show at least $3,600/month in verifiable income.

Write down how you handle edge cases before you see applications: Will you combine household income for co-applicants? Do you accept co-signers for applicants who fall short? How will you calculate income for self-employed applicants or retirees on fixed income? (A 12-month average of bank deposits or tax return AGI works well for variable earners.)

2. Credit score minimum

A credit score of 620 is a common cutoff for rental approval. Below 580 is generally considered poor credit; 620–680 is borderline; above 700 is strong.

Decide in advance what you'll do with borderline scores. Some landlords approve applicants at 600–619 with a larger security deposit or a co-signer. That's fine — but write it down and apply it to every applicant who lands in that range, not just the ones you like.

3. Rental history

Common standards: no evictions in the past 3–5 years; positive reference from the most recent landlord; no pattern of late payments on a prior lease.

For applicants who are first-time renters (no rental history), decide in advance whether you'll accept a co-signer or require a higher deposit. Don't improvise this after you've already seen who's applying.

4. Employment and income verification

Decide what documentation you'll accept before you start collecting applications. A solid standard: the two most recent pay stubs for W-2 employees; three months of bank statements for self-employed applicants; a benefit award letter for applicants on Social Security or disability income; two years of tax returns for anyone with variable income.

Apply the same documentation requirements to everyone. Asking one applicant for two pay stubs while requiring another to produce tax returns for an identical income situation can look selective.

5. Background check policy

Many landlords run criminal background checks as part of fair housing screening. The key is applying this consistently and with documented reasoning — not blanket rejections for any criminal record.

HUD guidance recommends individualized assessments: the nature of the offense, how long ago it occurred, evidence of rehabilitation. A blanket “no criminal history” policy can violate fair housing laws in some jurisdictions because it has a disparate impact on protected classes. Write down your policy (e.g., “no felony convictions within 7 years; individualized review of older records or misdemeanors with documented reasoning”) and follow it every time.

What “Consistent” Actually Means

Consistent doesn't mean rigid. You can approve an applicant who falls slightly short of your income threshold if you require a higher deposit. You can approve an applicant with a borderline credit score if they have a qualified co-signer. Flexibility is fine — inconsistent flexibility is not.

The test is: would you offer the same exception to every applicant in this same situation? If you'd let one applicant use a co-signer to overcome a low credit score, you need to offer that same option to every applicant with a comparable score — not just the ones you already have a good feeling about.

When you make an exception, document the reasoning immediately: “Applicant's income is $3,450 vs. $3,600 threshold — approved with $400 additional security deposit per written exception policy.” That note protects you.

How to Handle Borderline Applicants

Borderline applicants are where documentation matters most. Before you make a decision, write down:

• What criterion the applicant fell short on (and by how much)
• What your written policy says about this situation
• What decision you made and why (approval with conditions, denial, request for additional documentation)

“Applicant's credit score is 608 — below our 620 minimum. Per our exception policy, offered approval with $500 additional deposit and co-signer requirement. Applicant declined.” That is defensible.

“I just didn't like the vibe” is not. It will not protect you if an applicant files a fair housing complaint, and it will not hold up in a hearing.

If you deny an applicant after pulling their credit report, you are required by the Fair Credit Reporting Act (FCRA) to send an adverse action notice — a written notice explaining the decision and identifying the consumer reporting agency. Even when credit isn't the reason, a written denial letter is good practice.

Set Your Criteria Before You See the First Applicant

This is the most important timing rule in rental screening: write down your criteria before you start reviewing applications — ideally before you post the listing.

Once you've seen an applicant's name, photo, national origin, or familial status, any criteria you set after that point can be challenged as post-hoc rationalization. Even if your intentions are clean, the timing looks bad. A judge or HUD investigator will ask: “When did you decide on this threshold?” “After I saw the applications” is not the right answer.

A simple pre-screening checklist — income threshold, credit minimum, rental history standard, income documentation requirements, and background check policy — written and dated before you post the listing — is your best protection.

How LeasePlex Helps You Screen the Right Way

LeasePlex includes a built-in Screening Criteria card that prompts you to document your criteria — income threshold, credit minimum, rental history standard — before you start reviewing applicants for a unit. It's timestamped, stored with the property record, and available if you ever need to demonstrate that your criteria were established in advance.

For small landlords who self-manage, that kind of simple documentation system is often the difference between a defensible screening process and an expensive fair housing complaint.

See how LeasePlex handles screening documentation →

This post is for informational purposes only. Fair housing and landlord-tenant laws vary by jurisdiction and change frequently. Consult a licensed attorney for advice specific to your situation.