Rental application process 101

Disclaimer: This article is not legal advice. Legal information is not the same as legal advice, where an attorney applies the law to your specific circumstances. Consult an attorney for advice on your interpretation of this information or its accuracy. You may not rely on this article as legal advice, nor as an endorsement of any particular legal understanding.

The rental application provides you with important insights into a tenant’s background, rental history and financial fitness. Creating and implementing an effective rental application involves knowing what information you’re allowed to ask for, verifying that the information is accurate, and understanding how to apply that information in a way that is fair to all of the applicants. Here you’ll learn how to use the rental application process to identify and evaluate qualified tenants for the rental properties you represent.

What is a rental application?

A rental application is an essential part of the tenant screening process that a prospective tenant fills out with detailed information such as their personal information, employment history, rental history, credit history, and references. It’s also one of the best tools you can use to evaluate whether or not a tenant will be a good fit for your property and be responsible enough to pay rent in full and on time every month. 

A strong rental application will give you the confidence that a prospective tenant has:

• A steady history of employment
• A monthly income that is three times the rental rate
• A clean criminal record
• No prior evictions
• A good credit score
• Positive references

Essentially, a rental application is a formal document that helps landlords and property managers make informed decisions and choose the best-qualified tenants. 

Breaking down the rental application process

By following all the steps of the rental application process you can increase your chances of finding the right tenant and ensure a smoother experience for all parties involved. 

1. Preparation and advertising

Before you even start accepting applications, make sure your listing is ready for viewing and meets all safety and legal requirements. Then, list the property on rental platforms, social media, or local classifieds with clear details about rent, terms, and application requirements.

2. Receiving applications

Once potential tenants show interest in your property, provide them with an application form and ask them to fill out all required fields. You can use RentSpree’s free application form. 

3. Review applications 

Verify that all information has been filled out accurately and confirm the applicant is who they actually claim to be. Consider contacting their previous landlords or their employer to confirm their job status, length of employment, and income. 

At this stage, you’ll want to run credit checks and criminal background checks to determine if the applicant is financially stable and trustworthy. Keep in mind that per the Fair Credit Reporting Act (FCRA), you are required to obtain the applicant’s consent first. 

4. Make a decision

Before you accept an applicant, make sure you have done your due diligence and closely reviewed all parts of their application. Schedule an in-person interview with the applicant to clarify any concerns and to get a better sense of their personality to evaluate fit. While it’s essential to rely on objective data, don’t ignore your gut feeling. If something seems off during the screening process or the interview, move on.

How long does the entire rental application process take?

Overall, the process can take anywhere from five to 14 days, depending on how quickly each step is completed. Here’s a rough estimate of how long each step takes:

Submitting the application

Prospective tenants usually take one to two days to complete and submit the rental application form along with necessary documentation such as ID, proof of income, and references.

Initial review

Thoroughly reviewing the submitted applications to ensure all required information is provided and verified can take between one to two days.

Credit and background checks

Running credit and criminal background checks through a screening service typically takes one to three days, depending on the service used.

Employment, income verification, and reference checks

Verifying an applicant’s employment status and income can take one to three days, depending on the employer’s responsiveness. Reaching out to previous landlords or personal references might take an additional two to four days, depending on how quickly the references respond.

Interviewing the applicant (if necessary)

Scheduling and conducting the interview may add another one to three days to the process.

Making a decision and notifying the applicant

After all checks and interviews are completed, it may take you one to two days to make a final decision and inform applicants of your decision. Once you arrange for them to sign a lease, you can expect to have it back within one to two days after. 

Why agents and landlords can’t afford to skip the rental application process

Not following the application process thoroughly can create several challenges including:

Tenant issues

By not vetting potential tenants, you risk renting to individuals who may have a history of late payments, property damage, or other problematic behaviors. As a result, this can lead to disputes, missed rent, costly repairs, and even evictions. 

Legal and financial consequences

Failure to adhere to the legal requirements of the application process can result in legal disputes or fines. For example, not obtaining proper consent for background checks or failing to comply with fair housing laws (which prohibits discrimination based on race, skin color, nationality, religious preference, gender, age, family status, or disability) can lead to legal repercussions and financial penalties.

Rental fraud

These days far too many applicants are submitting false information such as fake employment details, inflated income, or fabricated rental histories. And if you don’t carefully review applications and verify applicant information, you could end up becoming a victim of rental fraud. 

Damage to your reputation

Failing to follow proper procedures can damage your reputation as a landlord or agent. You could end up with disgruntled tenants, an increase in vacancies, or a decrease in overall trust and credibility within the market.

Challenges in lease enforcement

Without a complete application process, enforcing lease terms becomes more difficult. If issues arise and you need to take legal action, having incomplete or improperly documented applications can weaken your case.

What to expect from the rest of this guide

As you go through the process of screening tenants, here’s some articles to read through so you are prepared for every stage. 

1. Reading standard rental application forms

Learn how to accurately read and interpret the information provided by prospective tenants on rental application forms. In this article we cover key elements such as what sections are included on a rental application form and provide tips for verifying tenant details and running background checks. 

2. Identifying tenant red flags on rental applications

In this article you’ll read about why it’s important to identify and avoid fake applications. We outline what rental application scams are, how to prevent fraud, the consequences of accepting scammers, and how to spot fake applications.

3. 5 common problems with rental application requirements

Discover the top five problems we see most on lease applications from asking discriminatory questions to mishandling screening fees. 

4. Rental application denial letter

What happens when you decide to reject an applicant? We’ve got everything you need to know about how to deny an applicant as well as a sample rental application denial letter that you can use.

5. The Fair Housing Act

Learn about what the Fair Housing Act is, who it affects, and how you can maintain legal compliance during the rental application process.