What’s the Best Way To Qualify a New Tenant?

By Bobbye Joe McMillan

Bobbye Joe McMillan is the driving force behind Cornerstone Property Management, bringing over 30 years of expertise in real estate to help clients achieve their property goals.

Managing rental properties can feel like a gamble. One bad tenant can wreck your property, delay rent, and leave you drowning in stress. The good news? Finding your dream tenant isn’t as hard as it seems when you follow a proven system. Here’s how I’ve ensured consistent cash flow and peace of mind by qualifying the right tenants every time.

1. Start with clear criteria. The first step to finding the right tenant is knowing exactly what you’re looking for. Before listing your property, decide on your non-negotiables. For me, this means verifying income that’s at least three times the monthly rent, a solid credit score, and a clean rental history. Setting standards upfront protects your investment and avoids future headaches. It also ensures you stay compliant with fair housing laws by applying consistent guidelines.

2. Always verify income and rental history. Never skip this step. It’s tempting to take someone at their word, especially when they’re in a hurry to move. But this is where many landlords go wrong. Ask for proof of income, like pay stubs or tax returns. If they’re self-employed, request bank statements. Then, follow up with their previous landlords to confirm they paid rent on time, left the property in good condition, and were tenants they would rent to again. This extra effort can uncover red flags before they become your problem.

3. Run background and credit checks. Think of these checks as your safety nets. A credit check reveals how applicants handle financial responsibilities, while a background check highlights any issues that could pose a risk to you or your property. Look for signs of late payments, evictions, or a history that might raise concerns. While being thorough, ensure you follow local laws regarding the use of this information in your decision-making process.

Managing rentals doesn’t have to be stressful. By following these steps, you’ll save yourself time, money, and sleepless nights. If you need help setting up a tenant screening system or want guidance on how to find the best tenants, call or text me today. Let’s make your properties work for you, not against you!