Tenant screening is the most important thing you do as a landlord. Place the right tenant and your property runs itself. Place the wrong one and you’re looking at late payments, property damage, and a costly eviction. Here’s how to screen tenants the right way in Houston, TX.
Step 1: Set Written Screening Criteria Before You Advertise
Before you list your property, write down your minimum requirements:
- Income: Industry standard is gross monthly income at least 3x monthly rent.
- Credit score: Set a minimum (many landlords require 600+). Be consistent.
- Rental history: No evictions within the past 3–5 years.
- Criminal background: HUD guidance recommends individualized assessment.
- Employment: Must be currently employed or have verifiable income.
Write these down, put them on your application, and apply them to every applicant identically.
Step 2: Use a Written Rental Application
Every applicant should complete a written application capturing full legal name, SSN (for background check), current and previous addresses with landlord contact info, employment history, income documentation, and authorization to run background and credit checks. Charge an application fee ($30–$75 in Houston) to filter out non-serious applicants.
Step 3: Run a Full Background Check
Use a screening service covering all three: credit report (payment history, collections, score), criminal background (county, state, and national), and eviction history (separate from criminal — this is critical). Many applicants with decent credit still have prior eviction filings.
Step 4: Verify Income
Ask for the last two pay stubs and two months of bank statements. For self-employed applicants, request the last two years of tax returns. Call the employer directly to verify current employment. Don’t rely solely on what applicants tell you.
Step 5: Call Previous Landlords
Call the previous landlord — not just the current one, since current landlords sometimes want problem tenants out. Ask: Did they pay on time? Was there any damage beyond normal wear? Would you rent to them again? A landlord who hesitates or gives vague answers is telling you something.
Texas Fair Housing Considerations
Texas landlords must comply with the federal Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, disability, and familial status. Your written criteria and consistent application protect you.
Let a Professional Handle It
Stagecoach Management handles comprehensive tenant screening for Houston property owners. Learn more about our screening process or contact us to discuss your property.