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Another indicator is the renter's ability to make the security deposit. Money talks, after all and renter's without security deposit money are questionable renters. If the applicant asks for an extension or a delayed payment agreement on the security deposit, or has to rely on other sources to make the payment, chances are that they will have the same problem next month when the rent is due. Don't do it. If they can't make the security deposit, you can expect that they won't make the rent.

7. Do the math and evaluate the renter's family income vs. expense ratio. Every metropolitan area has a certain standard of living that requires a standard level of income in order to meet the cost of utilities, transportation, and basic household expenses. You should be aware of what the standard level is for a typical family of the same household composition and compare it to the income and expenses of the applicant.

8. Personal reference checks are time-consuming, but necessary. Your applicant should give you at least three personal references, excluding family members. Take the time to call them and inquire how long they have known them and the nature of their relationship. Be sure to stress the confidentiality of your call, and use a standard form to document the impartiality of your inquiries.

9. Be sure to check with the applicant's employer. You should place a formal inquiry to the HR department verifying the length of time employed, current employment status or have they been terminated? You can also verify their current wages and salary, which will give you a good idea if they adequate to meeting basic income requirements. Always get a reply in writing, on company letterhead and be sure to place it in the file.

10. Vague or incomplete answers on the application should always raise a warning flag. Never accept an application with missing or incomplete information or a fuzzy answer. Send a letter to the applicant requesting the missing information to the address given on the application. You may discover that your letter is returned or undeliverable in some cases. Don't place a phone call either. You should always strive for complete documentation of your correspondence with your applicants. Phone call discussions are difficult to prove, even with your consistent and careful note taking.

Ultimately, the decision to rent or not is yours. You should be well prepared to make an informed decision and move on to the final step in the process. Once you've reached the conclusion that the information on hand indicates a high-risk tenant, you should act immediately. Do not postpone communicating your decision to them, and do it in the form of a nicely written, polite thanks but no-thanks letter. In most cases, that will close the matter, but in some cases, you may have to prove your reasons for doing so. With careful and complete documentation of the screening steps you diligently follow, you can easily justify your decision if necessary.

Learn more about this author, Francis Jock.
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