Choosing Tenants

October 17, 2025•2 min read

7 KEY TIPS FOR CHOOSING TENANTS FOR YOUR RENTAL PROPERTY

The goal of any rental property investment is to generate steady monthly income. However, many investors get so caught up in the "numbers" that they overlook one of the most critical factors for success: choosing the right tenant. Poor tenant selection can lead to missed rent payments and damage to the property.

Landlord reviewing prospective tenant's credit score and income verification to ensure financial stability for rental property

Here are some essential tips to help you choose the best tenants:

1. Look for Applicants with Verifiable Income and Good Credit History
Always request proof of monthly income to ensure the applicant can reliably pay rent. Avoid applicants with low credit scores, as poor credit usually signals past defaults or financial irresponsibility.

2. Run a Background Check
Check public court records and use the applicant’s driver's license to verify any criminal history. You can also ask for a police report directly from the applicant.

3. Request References from Two Previous Landlords
Ask for contact information for at least two former landlords. Ask them if the applicant paid rent on time, respected property rules, and maintained good behavior as a tenant and neighbor.

4. Ask Why They Are Moving
This is often a useful way to uncover if the applicant was evicted or if they have a legitimate reason for relocating.

5. Verify Employment History
Frequent job changes can be a red flag for financial instability. Check the applicant’s employment background to assess stability.

6. Trust Your Instincts
Even if all documents check out, if something about the applicant makes you uncomfortable, it’s better to move on to the next candidate.

7. Comply with the Fair Housing Act
It is illegal to refuse to rent based on race, color, religion, national origin, sex, disability, or familial status. This includes rejecting families with children, pregnant women, or those in the process of adopting.

Summary:
Choose tenants with solid income, good credit, clean records, and stable employment. Check landlord references and reasons for moving. Trust your instincts, but always follow Fair Housing laws to avoid discrimination and legal issues.