What to look for when screening rental applicants: A modern guide for property managers

‍The right screening process doesn’t just reduce risk—it drives profitability

Whether you're managing a 30-unit property or a 3,000-unit portfolio, every leasing decision impacts your rent roll, team efficiency, and long-term value. Choosing the wrong resident can result in unpaid rent, expensive turnover, and avoidable damage. But the right resident? They pay on time, respect the property, and renew year after year.

Effective tenant screening is one of the most powerful levers in property management—but in today’s evolving rental landscape, it’s also one of the most complex. Traditional income and credit checks no longer tell the full story, especially as more renters earn income from non-traditional sources, arrive without U.S. credit history, or rent for the first time.

This guide walks through what to look for when screening rental applicants today, how to modernize your criteria, and how to create backup systems—like Cosign’s lease coverage—to protect your property when edge cases slip through.

Start with the fundamentals: the core of a strong rental application

Every application should cover the basics. Your leasing team needs a consistent structure that includes:

• Full legal name, current address, and contact information
• Employment history and current employer contact
• Monthly income
• Social Security number or equivalent ID for background and credit checks
• Consent to run credit and criminal background checks
• Previous landlord references
• Emergency contact info
  
  

Pro tip: Use digital forms that auto-flag incomplete fields and allow e-signatures to reduce follow-up and errors.

1. Income & employment: dig deeper than a number

The standard: 3x rent in verifiable income
The reality: It’s not that simple anymore

For W-2 employees with a steady salary, verification is straightforward. But what about gig workers, freelancers, students, or remote contractors?

Modern screening should include options for:

• Bank statement review to identify consistent deposits over 3–6 months
• Tax returns for self-employed applicants
• Proof of student enrollment + parental support
• Offer letters or contracts for incoming workers or foreign nationals

Don’t just ask how much they earn—understand how consistently and from where.

Also, always contact the listed employer directly using a company line or verified email, not just the number or email provided on the application.

2. Credit history: know what matters most

Credit scores are useful—but they’re not gospel. Many renters (especially younger ones) may have thin files or no credit at all. That doesn’t automatically make them risky.

What matters more:

• Payment history: Have they consistently paid loans or utilities on time?
• Debt load: Are they maxed out or managing credit responsibly?
• Recent collections or judgments: Red flag for rent reliability
• Authorized user accounts: Credit that doesn’t reflect their own payment habits

If the applicant doesn’t have a U.S. credit history, ask for:

• International credit reports via third-party services
• Bank statements and tax returns
• Cosign as a lease coverage option to protect the lease
  

3. Rental history: past behavior is your best predictor

Don’t skip landlord references. Previous landlords can reveal what documents can’t.

Questions to ask:

• Did they pay rent on time?
• Any complaints from neighbors or staff?
• Did they leave the unit in good condition?
• Would you rent to them again?

Bonus: Cross-check listed addresses with the credit report. If they don’t align, dig deeper—some applicants list fake landlords hoping you won’t check.

If the applicant has no rental history (first-time renters or students), that’s not an automatic no—but it does mean you should consider additional safeguards like lease coverage or a structured move-in checklist to minimize turnover risk.

4. Background check: use discretion, not automation

A background check will surface:

• Criminal history (local, state, and federal)
• Evictions
• Judgments related to past rent

Important: A background check doesn’t mean an automatic rejection.

Fair housing laws prohibit blanket denials based on past convictions. You need to evaluate:

• The nature of the offense
• How long ago it occurred
• Whether it’s relevant to housing safety or trustworthiness

Create a documented process for review and ensure your leasing team knows how to navigate it.

5. Eviction history: trust the data

TransUnion found that residents who have been evicted in the past are nearly 3x more likely to be evicted again.

Check your applicant’s:

• Prior evictions
• Court judgments for rent
• Tenant collections
  

If you spot a pattern, it may be time to refer the applicant to a lease coverage option—or pass entirely, depending on context.

6. Screening non-traditional applicants: a modern must

Not every qualified resident fits the standard screening model. Here’s how to approach it:

Scenario: International student, no U.S. credit, funding from abroad
→ Ask for proof of enrollment + payment support documentation
→ Offer Cosign lease coverage to protect the lease

Scenario: Freelancer with $10K/month income but no employer
→ Request tax returns, bank statements, and recent contracts
→ Use Cosign as a financial safety net

Scenario: Retiree with no job but stable assets
→ Ask for investment or retirement account summaries
→ Use Cosign to adjust screening to focus on liquidity and financial reserves

The key: Be flexible in how you verify—but firm in how you protect your income. That’s where Cosign becomes invaluable.

7. Cosign: your rent roll’s safety net

Even with the best process, you’ll still face edge cases, gray areas, and high-risk approvals. Cosign acts as a fallback when traditional screening can’t tell the whole story.

Here’s how it works:

• If an applicant doesn’t qualify, refer them to Cosign’s online portal
• They apply directly and, if approved, purchase lease coverage
• You lease the unit as usual
• If they default, Cosign covers your losses within 5 business days

This reduces denial rates, helps you fill more units, and protects your rent roll without loosening standards. And because it’s renter-paid, there’s no cost to you.

Final thoughts: screen smarter, not just harder

Tenant screening is evolving. Credit scores and pay stubs aren’t enough anymore—especially as renters become more diverse in background, income, and lifestyle.

By modernizing your screening process, documenting your criteria, and adding protective tools like Cosign, you don’t just reduce risk—you unlock growth.

Because when screening is done right, it’s not just about protection—it’s about performance.

Want to learn how Cosign fits into your tenant screening workflow? Visit us and let’s find a solution tailored to your property.