Tenant screening is an often overlooked aspect of property management that, if neglected, can impact a landlord’s experience. By employing thorough and legally compliant screening practices, landlords can mitigate risks, avoid financial setbacks, and develop more positive relationships with their future tenants.
Tenant screening is not just about finding someone to fill a vacancy but about selecting the right tenant who will respect the property, adhere to the lease terms, and contribute positively to the landlord-tenant relationship. This blog post will outline best practices in tenant screening, with a focus on the legal considerations that landlords must bear in mind.
Comprehensive Tenant Identification
One of the initial steps in tenant screening is to thoroughly verify the identity and credentials of potential tenants, which helps prevent fraud and ensures that the person applying is who they claim to be. This involves more than simply gathering basic personal details; landlords need to confirm that the information provided by the applicant is accurate and authentic.
Landlords should begin by requesting a government-issued photo ID, such as a passport or driver’s licence, which provides details like the applicant’s full name, photograph, and date of birth. To further confirm the tenant’s identity, landlords should cross-check this information against other documents, such as utility bills, bank statements, or employment letters.
This helps verify the applicant’s residential history and stability, giving landlords a clearer picture of the tenant’s financial reliability and overall suitability. Additionally, landlords might find it beneficial to use professional tenant referencing services. These services conduct detailed background checks, including reviewing the applicant’s credit history, past rental behaviour, and any potential issues that may not be immediately obvious. Although these services come with a cost, they can help landlords identify potential risks early in the process, reducing the likelihood of future problems.
Avoiding Discrimination During Screening
While tenant screening is a critical process, it is equally important to conduct it within the bounds of the law. Discrimination during the tenant selection process is a legal risk, and landlords must be well-versed in anti-discrimination laws – or seek expert advice – to avoid legal complications.
In the UK, the Equality Act 2010 prohibits discrimination based on several protected characteristics, including age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. This means that landlords must avoid any screening practices that could be interpreted as discriminatory, either directly or indirectly.
For example, asking questions about an applicant’s marital status, plans to have children, or religious beliefs during the screening process can lead to legal challenges. Instead, landlords should focus on criteria directly related to the applicant’s ability to pay rent and maintain the property, such as income level, employment status, rental history, and credit score.
To apply the same screening criteria consistently to all applicants, landlords must use a standard application form and checklist for every potential tenant and document the decision-making process. By maintaining a consistent and transparent screening process, landlords can demonstrate that their decisions are based on legitimate business considerations rather than discriminatory practices.
Effective Property Advertisement and Initial Tenant Interactions
The tenant screening process begins long before an application is submitted. It starts with how the property is advertised and the initial interactions with potential tenants. Landlords should be mindful of the language used in property advertisements and communications to avoid unintentionally excluding or discouraging certain groups of people.
When crafting a property advertisement, it is important to focus on the features of the property rather than the type of tenant the landlord is looking for. For instance, phrases like “perfect for young professionals” or “ideal for couples” could be seen as discriminatory. Instead, describe the property’s amenities, location, and benefits, allowing a broad range of potential tenants to see themselves living there.
Initial interactions with potential tenants, whether over the phone, via email, or in person, should be professional and focused on the property. Landlords should avoid making assumptions about a tenant’s suitability based on their appearance, accent, or other non-relevant factors. Instead, these interactions should serve as an opportunity to gauge the tenant’s genuine interest in the property and their suitability based on objective criteria.
Landlords should also consider conducting open houses or viewings in a manner that provides all interested parties with equal access to the property. By scheduling viewings at different times or offering virtual tours, landlords can accommodate a wider range of potential tenants, which can help in selecting the best candidate from a more diverse pool.
The Application Process and Background Checks
Once potential tenants express interest, the application process becomes the next stage of tenant screening. A well-structured application form should be used to gather all necessary information, including personal details, employment information, rental history, and references. Landlords should ask for contact information for previous landlords and employers to verify the applicant’s rental and employment history.
Background checks are an essential component of the application process. These checks typically include reviewing the applicant’s credit history, criminal record, and references from previous landlords. Credit checks can provide insight into the applicant’s financial responsibility and ability to manage their rent payments. However, landlords should be aware of the legal implications of conducting credit checks, particularly in relation to the General Data Protection Regulation (GDPR). Applicants must be informed that a credit check will be carried out, and landlords must obtain their explicit consent.
Criminal background checks, while potentially informative, must be approached with caution. Landlords should consider the nature and relevance of any past criminal behaviour in relation to the tenancy. For example, a conviction for a non-violent offence many years ago may not necessarily impact the applicant’s ability to be a good tenant today. It is important to weigh these factors carefully and to avoid blanket policies that could be considered discriminatory.
Landlords should also pay attention to the references provided by previous landlords. A good reference can be a strong indicator of a tenant’s reliability, while a poor reference could be a warning sign of potential problems. However, it is also essential to verify the authenticity of these references, as some applicants may provide false or misleading information. Speaking directly to the previous landlord or employer can provide valuable insights that a written reference may not capture.
Final thoughts
Finally, landlords must remain informed about the legal limitations and responsibilities when rejecting an applicant. If an applicant is declined based on background checks or other screening criteria, it is advisable to seek guidance on best practices for landlords to stay compliant with legal obligations. Properly documenting the reasons for rejection is also recommended, as this documentation can be invaluable if the decision is later questioned. Solicitors can provide tailored advice to help landlords navigate these situations, reducing the risk of legal disputes.
