Tenant screening is the single most important step in protecting your rental investment. A thorough screening process dramatically reduces the risk of evictions, property damage, and missed rent payments. Here's your complete guide.
Legal Requirements in Washington
Washington state has specific rules about tenant screening that every landlord must follow:
- Screening fees: You can charge a screening fee, but it must not exceed the actual cost of screening. You must provide a receipt and disclose the screening criteria in advance.
- Fair housing: You cannot discriminate based on race, color, national origin, religion, sex, familial status, disability, sexual orientation, gender identity, veteran status, or source of income.
- Criminal history: Seattle and some other Washington cities have specific rules about when and how criminal history can be considered.
- First in time: Seattle requires landlords to use a first-in-time screening process, evaluating applications in the order they're received.
The Five Pillars of Screening
1. Credit Check
Pull a full credit report and look for patterns, not just scores. A low score from medical debt is very different from a low score from serial non-payment. Look for eviction-related debts, collection accounts, and payment consistency.
2. Criminal Background Check
Run a criminal background check in compliance with local laws. Focus on convictions that are directly relevant to tenancy — such as property destruction or violent offenses. Remember that many jurisdictions limit how far back you can look.
3. Eviction History
Search for prior evictions across all jurisdictions where the applicant has lived. A history of evictions is one of the strongest predictors of future problems.
4. Employment and Income Verification
Verify that the applicant is employed and earning sufficient income. A common standard is that rent should not exceed 30-33% of gross monthly income. Request pay stubs, tax returns, or employer verification letters.
5. Landlord References
Contact previous landlords — not just the current one (who may be motivated to give a positive reference to get rid of a bad tenant). Ask about payment history, lease violations, property condition, and whether they would rent to this person again.
Red Flags to Watch For
- Gaps in rental history with no explanation
- Reluctance to provide references
- Inconsistencies between application and verification
- Multiple moves in a short period
- Unpaid debts to previous landlords
Best Practices
- Apply criteria consistently to all applicants
- Document your process and decision-making
- Provide adverse action notices when required
- Keep records of all screening materials
- Stay current on changing laws and regulations
The Bottom Line
Thorough screening takes time and costs money upfront, but it's the most cost-effective investment you can make as a landlord. One bad tenant can cost tens of thousands of dollars in lost rent, legal fees, and property damage. A good screening process pays for itself many times over.