We’ll start by discussing the benefits of having predetermined rental qualifications. The first thing it will do is streamline your process. If any interested parties are not up to your minimum screening criteria, you can decline them in advance. This saves you time showing the property, running credit and background checks, and calling references. Setting qualifications ahead of time also reduces the chances of a fair housing lawsuit. A universal standard removes the subjectivity and forces you to look only at the important factors!

Before we get into more detail, here is a simplified list of the typical criteria we would look for: 

    • Income - Gross at least 3x the monthly rental rate 

    • Credit - Scores 650+, few/no late payments or accounts in collections

    • Background/Evictions - Clean criminal and evictions history

    • Rental History - Good landlord references 

    • Pets - To be accepted at the owner’s discretion 

When you write your rental listing and set the qualifications you’re looking for sound financials first and foremost. If you expect your tenant to be able to pay rent on time, what do you want to see from them? I imagine you’d also like them to respect the property and not cause excessive damage or disturbance to tenants around them, so let's delve a bit deeper!

Income Qualifications - Total gross income (for individuals or a group) should be greater than or equal to 3x the rental rate. In condos or single-family homes where rental rates are typically higher, you may look for income closer to 4x. The best income is from established employment and should be verified by recent pay stubs and/or tax returns. And for self-employed applicants, require multiple years of tax returns. 

Credit Qualifications - Scores above 600 are usually acceptable (though we prefer 650+). When analyzing credit reports, you should not accept someone with multiple delinquent accounts or accounts recently sent to collections. Again, with slightly more expensive rentals, you may want to increase the credit criteria as well. 

Pro-Tip = if an applicant’s credit score is close, but not up to your criteria, analyze further by looking at what type of debt there is. School and medical bills are less concerning than outstanding car bills, unpaid utilities, or credit cards!

Background/Evictions Record - You’ll want to see a clean background and evictions record for any adult. Criminal records should not contain convictions for crimes involving violence, drugs, firearms, assault/battery, or sexual offenses. Evictions in the last 3-5 years are also a major red flag and grounds for denial. 

Rental History - Applicants should have a good rental history that indicates they complied with all the terms of their previous lease. You should require that applicants provide contact information for their most recent landlord(s) so that you can make contact. Previous landlords are a great resource for finding out how tenants cared for their unit and whether or not they paid on time!

 Pro-tip = Always end your conversation with a landlord reference by asking this before you hang up: If these tenants applied to another of your units, would you rent to them in the future?

Pets - This can be a tricky one! Pets should be accepted at the owner’s discretion but will vary by unit/property type. Breed restrictions are helpful, and it is smart to set size/weight limits on pets too. Before setting your pet criteria, you’ll also want to check with your renter’s insurance policy so you can be clear about what animals can or cannot be accepted. Be careful with applicants who have service and emotional support animals though! These animals cannot be a reason for denial in the state of CT. 

Now that you know how to set effective rental qualifications, you’re prepared to make sound decisions on who to accept or deny. To stay in line with fair housing law, base your next tenant selection only on the objective facts discussed here. 

If you’re seeking additional advice or answers to property management and leasing questions, please contact us at 860-613-6290 for a no-obligation Discovery Call. Our team of agents is ready to assist at any time because they love what they do!