Can I reject a tenant for bad credit?

Yes. Credit history is a legitimate screening criterion. Be consistent — apply the same credit standards to all applicants and document your reasoning.

How much income should a tenant have?

A common rule of thumb is that a tenant's gross monthly income should be at least 3x the monthly rent. Verify with pay stubs, bank statements, or employer letters.

What to Look for When Screening Tenants

Q: What is the Fair Housing Act?

The Fair Housing Act prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability. Some states and cities add additional protected classes.

Screening tenants is the most important thing you will do as a landlord. A good tenant pays on time, respects the property, and communicates problems early. A bad tenant can cost you thousands of dollars and months of stress.

Here is what to look for — and how to do it legally.

Start with a written application

Every applicant should complete the same written application. This protects you legally and helps you compare candidates consistently.

A good rental application asks for:

Full legal name and date of birth
Current and previous addresses (last 2–3 years)
Employer name, contact, and income
References (personal and previous landlords)
Consent to a background and credit check

Keep all applications on file for at least three years.

Run a credit check

A credit check reveals how an applicant handles financial obligations. Look for:

Payment history — late payments or missed payments are red flags
Outstanding debt — high debt relative to income can indicate risk
Evictions or judgments — these appear as public records
Bankruptcies — note how recent and what the circumstances were

Use a reputable tenant screening service (e.g., TransUnion SmartMove, RentSpree, or Avail). Charge applicants the screening fee — it is legal and standard practice.

Verify income

A tenant should earn at least 3x the monthly rent in gross income.

Ways to verify:

Last two pay stubs
Last two bank statements
Offer letter if recently hired
Tax returns for self-employed applicants

Do not skip this step. A tenant who earns $2,000/month cannot reliably pay $1,200 in rent.

Check rental history

Call previous landlords — not just the current one, who may give a positive reference just to get a problematic tenant out.

Ask:

Did they pay on time?
Did they leave the unit in good condition?
Did you have to address noise or lease violations?
Would you rent to them again?

Follow Fair Housing law

You cannot reject an applicant based on any protected class under the Fair Housing Act. That includes race, color, national origin, religion, sex, familial status, or disability.

Your screening criteria must be:

Written down before you start accepting applications
Applied consistently to every applicant
Based on objective factors — income, credit, rental history

If you decline an applicant, document why in writing, using only your stated criteria.

Make a decision and document it

Once you have reviewed applications, make your decision based on your written criteria. If you approve someone, collect the security deposit and first month’s rent before handing over keys.

If you decline someone, send a written notice. If your decision was based on a consumer report (credit or background check), you are required to send an adverse action notice under the Fair Credit Reporting Act.

Screening tenants well is not complicated — it just requires consistency. Write your criteria down, apply them equally, and keep records of everything.