Property owners/managers often ask ... "How should I screen potential tenants?”
Your rental property is a business, and deciding whom to lease it to is a major business decision. It's important that you thoroughly screen a potential tenant (HCV or market-rate) before starting a tenancy and entering into a lease agreement.
CHA evaluates whether the unit is affordable for the HCV participant, not whether the tenant is a good fit. Therefore, it’s the property owner’s responsibility to screen and select a suitable tenant. Below are some tips to help you choose the right renter for your property.
Know Your Criteria Make a list of your non-negotiables before you start the tenant screening process. Will you require a minimum credit score? Will you only accept pet-free tenants? How important is rental history? Knowing what your deal breakers are will help you better understand the makeup of your ideal tenant.
Consider Using a Rental Application Having all prospective tenants complete a rental application can help you gather key information, including employment history, credit background, pet expectations, previous addresses, and contact details for former property owners/managers.
Use a Background Check Service A background check service can provide more information on potential tenants, including credit, criminal* and eviction histories. A simple internet search can help you find a background check service that aligns with your business goals.
*There are fair housing protections for covered criminal history. The Cook County Just Housing Amendment establishes a three-year threshold for criminal history when screening a prospective tenant to rent a unit. Therefore, a property owner cannot consider criminal history that is more than three years old and must conduct an individualized assessment of any applicant with a criminal history less than three years old.
Stay in Compliance with Fair Housing Laws When screening tenants, it’s important to comply with fair housing laws that require property owners to apply the same screening criteria to all tenants equally and offer reasonable accommodations to people with disabilities. Combined, Chicago, Cook County, Illinois, and Federal fair housing laws and ordinances prohibit discrimination based on:
- Race
- Color
- National Origin
- Ancestry
- Religion
- Age
- Disability
- Sex
- Gender Identity
- Marital Status
- Covered Criminal History
- Familial Status
- Sexual Orientation
- Military Discharge
- Housing Status
- Source of Income
In addition, property marketing must comply with fair housing laws. For example, using language such as "Section 8 Welcome" or "Adults Only" on a property listing would be considered a fair housing violation as it indicates a preference and is exclusionary.
Interview Potential Tenants Connect with potential tenants to get a sense of their lifestyle and rental background. These conversations can take place virtually or in person. Below are some questions you may want to ask a potential tenant during an interview:
- Why are you looking to move?
- Do you or any other occupants smoke?
- Is there anything else I should know about you and your living situation?
- Do you have any questions for me?
Verify Information Confirm that the information a potential tenant provides on their rental application is correct. Contact their references. Confirm their employee status with their employer. Contact former property owners/managers to learn more about what they were like as tenants.
Reminder: CHA can provide contact information for a voucher holder's current and/or previous HCV property owner/manager. |