Hello and greetings from Colorado Springs! My name is Lance Kohler, and I’m the managing broker for the Cornerstone Real Estate Team. Today, I want to talk to you about tenant screening—a crucial step in managing your rental property.
While leasing a property begins with advertising, marketing, and showings, the tenant screening process is where we ensure that only qualified applicants move into your property. Our goal is to find the most reliable and qualified tenants for your rental.
How We Process Applications
At Cornerstone Real Estate Team, we process applications on a first-come, first-served basis. However, an application must be complete before we review it. If multiple tenants are applying together, we require all their applications and supporting documents before proceeding.
Once we receive a complete application, we follow a first-approved, first-offered policy. This means that if a tenant (or group of tenants) meets our screening criteria, they are approved and offered a lease before we consider any other applicants.
Our 12-Step Tenant Screening Process
Our tenant screening process consists of 12 key factors that we evaluate when reviewing applicants:
1. Credit Score (FICO Score)
Often referred to as a credit score, this is a numerical representation of how an applicant manages their financial obligations. It tells us:
Whether they pay bills on time and in full
If they have overdue or unpaid debts
Their overall creditworthiness
2. Collections History
We review the applicant’s collections history to determine:
If they have outstanding debts
The type and amount of collections
When the collections occurred
A significant red flag is collections from other property management companies, as this may indicate issues with past rental payments.
3. Payment History
We analyze how applicants have managed their financial responsibilities, including:
Credit card payments
Car loans
Mortgage payments
This gives us insight into their financial reliability.
4. Debt Levels and Monthly Payments
We review an applicant’s current debt load to ensure they can afford the rent while meeting other financial obligations.
5. Employment Verification
We confirm that the applicant is currently employed and verify the details they provide.
6. Income Verification
We check if the applicant’s income meets our requirements to ensure they can afford the rental property comfortably.
7. Current and Previous Residences
We examine the applicant’s rental history, including:
Their most recent residence
Previous rental properties
8. Rental History Verification
If an applicant has rented from other property management companies in the past, we verify their rental history and payment reliability.
9. Pet and Animal Verification
We confirm whether the applicant has:
Pets
Emotional support animals
Service animals
This helps ensure compliance with pet policies and legal requirements.
10. Background Check
We conduct a thorough background check on every applicant to identify any potential concerns.
11. Criminal History
Our screening process includes a review of the applicant’s criminal history to assess any risks.
12. Sexual Offender Registry Check
We check if an applicant is listed on a sexual offender registry, as this can impact rental eligibility.
Final Thoughts
Tenant screening is one of the most important steps in managing a rental property. By carefully evaluating applicants through our 12-step process, we help ensure that landlords find responsible, financially stable, and qualified tenants.
I hope this information was helpful. Thanks for your time, and have a great day!