When we are talking to potential customers, one of the first questions they ask us is how we find them a good tenant. They want to know what the perfect tenant looks like, and we have a conversation about that. In our experience, whether you are an experienced landlord or a homeowner with a couple of properties, you have likely either had really good tenants in the past or really bad tenants. It can be hard to differentiate between the two categories in terms of selection criteria. In reality, finding a great tenant doesn’t come down to luck. It comes down to having a process to select your tenants. We recommend three main things when you are putting together a tenant screening process.
Checking Credit
Always look at a tenant’s credit. This will tell you a lot about past transactional histories. Make sure you’re looking at the score as well as individual entries on their credit reports. Apartment communities often put collections on their accounts o you’ll see anything they haven’t paid in the past, including overdue rent and unpaid rent. Other things that show up are judgments, foreclosures and bankruptcies. That tells you how they pay their bills, so it’s important to look at credit.
Employment and Income
Consult the prospective tenant’s current employer and understand their income status. As a general rule of thumb, we suggest that the monthly rent should not be more than a third of the tenant’s monthly income. That’s a good standard to apply when you’re checking employment references and verifying income.
Rental History
Finally, and most importantly, talk to current landlords. Do a verification and ask about the tenant’s record of paying rent on time. You also want to know if there were any lease violations and whether the tenant was ever under eviction. Consult national and 
state eviction records. If this tenant is not paying his or her current landlord or treating them fairly, they probably won’t pay you or treat you fairly either.