Key Takeaways
Set your tenant screening criteria before marketing your Chesterfield rental so every applicant is evaluated against the same standards.
Verify income using documentation appropriate to the applicant’s employment or financial situation rather than relying on stated earnings alone.
Review credit information alongside rental history and other relevant documentation instead of treating a single credit score as the deciding factor.
Document screening decisions and handle applicant information securely to create a consistent, organized process for your rental business.
When screening becomes time-consuming or difficult to manage consistently, consider professional leasing or property management support from a local provider.
For landlords in Chesterfield, Virginia, getting a tenant is only half the work involved in the renting process. The other half might be difficult, and distinguishing between a good and bad tenant would determine if your rental property is going to be profitable or full of problems like late payments, damage, conflicts, or sudden tenant turnovers.
Conducting proper tenant screening should not aim to find a “perfect” applicant. It is impossible to eliminate risks through screening. What you should be aiming for is to develop a standardized, lawful, and evidence-based screening process to see whether the applicant would fulfill the financial and other requirements of the lease.
Below is a useful guide from Peak Property Management on how to screen prospective tenants successfully, thus protecting your rental property and investment.
Start with a Written Screening Standard
Landlords tend to make a common mistake of reviewing applicants differently and not treating selected applicants equally. An applicant with excellent income may be provided revised terms while the next applicant with similar credentials might be put under further requirements.
Even if not malicious in its purpose, inconsistent screening can risk facing legal and financial repercussions.
Setting standards for your screening is done before advertising your property. Your standards can include any of the following content.
Minimum income requirements.
Verification of employment or income.
Credit history.
Rental history.
References.
Legally applicable background screening.
Occupancy requirements.
Pet rules and policy.
Length of lease agreement, documentation.
The key takeaway here is that standards should be put in place prior to assessing individual applicants. That will create a more uniform process and also make it simpler to explain decisions objectively.
Know Laws Before Screening
Tenant screening assesses tenants on the basis of sensitive personal information, so landlords need to understand the meaning of this statutory framework. Federal fair housing laws make it illegal to discriminate based on certain protected characteristics. Virginia and any applicable local laws may provide even more protections or requirements.
Landlords also need to be aware of the rules regarding consumer reports and background checks. If you use a consumer report in the law’s language to make any decision, there may be corresponding federal obligations, including when an adverse action is taken. This is one reason the professional screening process should never be based only on gut feelings.
A landlord cannot go against an applicant based solely on gut feelings, prejudices, or stereotypes. The landlord’s decision should be based on established, consistently applied rental criteria that define a reasonable applicant. If in doubt, the landlord should seek the advice of a qualified Virginia property management professional.
Verify Income Rather Than Relying on the Number
An applicant can claim that they are earning a specific amount of money in a month. That claim serves as a point of departure but does not act as confirmation. According to the situation of the Chesterfield applicant, appropriate documentation could be paychecks, employment verification, tax documents, bank statements (where lawfully required), or any other valid form of income.
The idea is to ascertain whether the individual can be relied on to pay rent. Also, it is important to consider the context of the income. Evidence of income earned by someone with irregular self-employment will vary from that of an employee receiving a fixed salary. Also, retirees will not need to show that they rely on their job for income, as that will be their investment income.
A screening process should, therefore, accept legitimate financial realities while employing the same basic standard.
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Look Past the Credit Score
A credit history can be informative, but no one number or score typically tells the complete story. A credit report can reflect payment histories, owed debts, collection accounts, or other information that is associated with one’s reliability when it comes to finances, but landlords should keep it in perspective.
A candidate might have a strong credit score but a background of eviction-related issues. On the other hand, a candidate with a weak credit score may have had unique life circumstances, and despite their financial distress, the individual has demonstrated dependability with regard to rental payments and adequate income.
This does not translate to saying that credit reports need to be ignored. Landlords should incorporate credit reports into their screening but not think of it as an end in itself. Decide how to incorporate credit score and information into your criteria and be consistent about the approach you take.
Pay Close Attention to Past Rental History
Past rental history can provide insight not available through income and credit reports. A past landlord can confirm whether rental payments were made timely and in compliance with the terms of a Virginia tenancy agreement. Also, a landlord can confirm if the rental property was damaged in any significant way and if appropriate notice was served before moving out.
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Ask objective questions. For example:
Did the tenant pay their rent on time?
Did they give appropriate notice?
Did the tenant exercise care of the property?
Did the tenant breach the lease in any significant way?
Would you rent to this tenant again?
Be careful when reading between the lines of a reference. A current landlord wanting a tenant to vacate may not give an accurate or complete story. Whenever feasible and permissible, it may be wise to compare reference information among multiple sources. You want to look for trends, rather than one isolated conversation.
Obtain Employment Verification
Getting proof of employment can verify if the job situation and income claims of the applicant are correct. If the applicant is employed, it would be appropriate to verify the employment status and the claimant’s income.
If the applicant is self-employed or an independent contractor or a business owner, or his/her income is unpredictable, then the verification process would be different.
Do not treat the non-traditional employment arrangements as an indicator that the applicant is uncaring about finances. Instead of focusing on employment arrangements, focus on the fundamental question: Does the applicant reasonably prove the financial capability of meeting the lease obligations?
A uniform screening criterion should help verify and use various genuine forms of income justification.
Bottom Line
In Chesterfield, VA, a tenant screening strategy involves more than checking off the boxes in the pre-screening checklist. It requires a systematic decision-making process.
Establish your criteria before advertising the unit.
Check the income.
Verify the credit report.
Check rental history.
Confirm necessary details.
Securely handle personal data.
Consistently apply screening criteria.
Understand fair housing policies.
And document every decision.
For help navigating these tasks, work with Peak Property Management.
Frequently Asked Questions About Effective Tenant Screening in Chesterfield, VA
What Does Tenant Screening Typically Cost In Virginia?
Tenant screening costs can vary depending on which consumer reports, background checks, and verification services a landlord uses. Virginia law currently permits a landlord to charge an application fee of up to $50, excluding certain actual out-of-pocket expenses paid to a third party for background, credit, or other pre-occupancy checks.
What Should A Chesterfield Landlord Do With Applicant Information?
Landlords should collect only information that is relevant to evaluating an application, limit access to people who need it for legitimate business purposes, and use secure methods for storing and transmitting sensitive records. This can include financial documents, identification, employment information, and consumer reports.
What Happens If A Landlord Denies An Applicant Based On A Consumer Report?
Federal consumer-reporting requirements can apply when a landlord uses a consumer report to make a housing decision. Depending on the circumstances, an adverse action notice may be required and may need to provide information about the consumer reporting agency and the applicant's rights.
Can A Landlord Charge An Application Fee In Chesterfield?
Virginia currently allows landlords to charge a nonrefundable application fee, subject to statutory limits, and also addresses refundable application deposits separately. Under current Virginia law, the application fee generally cannot exceed $50, excluding specified actual out-of-pocket expenses paid to third parties for background, credit, or other pre-occupancy checks.
When Should A Chesterfield Landlord Consider Professional Screening Help?
Professional help may make sense when screening applications takes significant time, the owner manages multiple properties, or maintaining a consistent process has become difficult. Peak Property Management provides resident screening as part of its property management services and offers Lease-Only services for landlords who need leasing assistance.
