A rental application is a document landlords and property managers use to screen prospective tenants before they sign a lease agreement and move into a rental property, including a room, home, or apartment. The purpose of this form is to assess whether an applicant would be a suitable renter for a property.
Use a Commercial Rental Application to do a background check for commercial tenants.
Rental Application – By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
How to Run a Background Check
1. Tenant Fills Out a Rental Application Form
When a potential tenant expresses interest in your property, the next step is to have them complete a rental application. It should include a Fair Credit Reporting Act (FCRA) Disclosure informing the tenant of their rights during the background check process.
Application Fees ($) – Depending on state laws, the tenant should be charged a non-refundable background check processing fee.
Is a Rental Application Legally Binding?
A rental application is not legally binding like a lease agreement; it serves as a tool for landlords to gather information and conduct background checks on prospective tenants. While it grants permission for these checks, it does not obligate either party to enter into a rental contract.
2. Verify Applicant’s Identity
Verify the applicant’s identity to ensure they are who they claim to be. This typically involves checking a government-issued photo ID, such as a driver’s license or passport.
Check the Sex Offender Registry
In addition to verifying identity, it is important to check if the applicant is listed on the Sex Offender Registry. Searching the National Sex Offender Public Website can help you ensure the safety of your community and make informed decisions about prospective tenants.
3. Perform a Credit Check
Conduct a tenant credit check to assess their financial responsibility. This will show their credit score, debt history, and payment history, giving insight into their ability to pay rent on time. You’ll need the applicant’s Social Security number and written consent to run a credit check.
You can pull the tenant’s credit report directly from a credit agency.
- SmartMove.com – $40 ( includes criminal background and eviction checks )
- MyRental.com – $14.99
- RentPrep – $21 ( does not require tenant involvement )
- E-Renter.com – $31.95 + $2.49 ( includes criminal record and sex offender checks )
The websites above also include a check on the applicant’s criminal history. Certain states and cities have regulations regarding how criminal history can impact rental decisions.
What Is A Good Credit Score For Tenants?
A good credit score for tenants is generally considered to be 670 or higher. This indicates that the tenant is at or above the national average and is likely to pay rent on time. Most landlords, however, are comfortable with a score between 600 and 650, considering that renters typically do not have the extensive credit history required to achieve higher scores.
4. Verify Rental History / Talk to Previous Landlords
Contact previous landlords or property management companies to verify the applicant’s rental history. Ask about their payment history, lease violations, and whether they would rent to this individual ever again. Make sure to ask the following about your applicant:
- Were there any issues with rent payments?
- Were they served with an eviction notice? If so, what was the reason?
- Did they leave the residence in good standing at the end of their lease?
- Did any previous neighbors have any complaints about the applicant?
Simplify the process of getting a landlord reference letter by using our guide!
5. Verify Employment and Income
As a landlord, you must verify and confirm the applicant’s employment status and income. This can be done by contacting their employer directly for employment verification and/or asking for recent pay stubs or a W-2 form. This step ensures the tenant can afford the rent.
- For employed applicants – check for pay stubs from the last three months (use an Income Verification Letter )
- For self-employed applicants – check the tax returns for the last two years (Form 1040)
Speaking with their employer or former landlord is also a good idea to get more information you would not get in a report.
6. Make an Informed Decision
After gathering all the information, decide on whether to accept or reject the application:
- Approve – Send the tenant an Approval Letter and start drafting a lease agreement. If you need a formal step before signing the agreement, you might consider using a residential lease letter of intent.
- Deny – Send a Rejection Letter notifying the applicant that they weren’t accepted.
On average, tenants have a credit score
- within the range of 300 to 580, regarded as having a history of financial challenges,
- within the range of 601 to 660, regarded as fair,
- 800+, regarded as having an exemplary financial track record. [1]
After approval, make sure to check state laws regarding security deposits, landlord’s access to the property, and disclosures.
Legally Denying Applicants
Landlords can legally deny applicants based on legitimate criteria that affect their ability to rent responsibly:
- Insufficient income to cover rent.
- Poor credit history.
- Negative references from previous landlords.
- Criminal background (except where local laws prohibit discrimination).
- Prior evictions.
- Incomplete or false information on the application.
Federal and State Fair Housing Laws
Ensure that your background check process complies with the Fair Housing Act and does not discriminate based on race, color, national origin, religion, sex, familial status, or disability.
Remember, fair housing laws consider age a protected class, so only collect this information if you need it to run tenant screening reports like credit or background checks.
Rental Application Fees
| State | Maximum App Fee ($) | Laws |
|---|---|---|
| Alabama | No limit | No statute |
| Alaska | No limit | Landlord-Tenant Handbook |
| Arizona | No limit | ARS 33-1321(B) |
| Arkansas | No limit | No statute |
| California | 54.7 | Cal. Civ. Code § 1950.6 |
| Colorado | No limit | Colo. Rev. Stat. § 38-12-903 |
| Connecticut | No limit | No statute |
| Delaware | 10% of the monthly rent or $50.00 | DE Code § 7020 |
| Florida | No limit | No statute |
| Georgia | No limit | No statute |
False or Misleading Information on a Rental Application
Providing false or misleading information on a rental application is a serious offense and can lead to legal implications for the applicant. Tenancies granted due to a fraudulent application are voidable. Here are some states that provide further legal consequences for such actions:
- California: Applicants can face fines and legal action for fraud.
- New York: Providing false information can result in the termination of the lease and possible criminal charges.
- Texas: Misrepresentation on an application can lead to eviction and potential fines.
- Florida: False statements can result in lease termination and legal penalties.
- Illinois: Misleading information may lead to the denial of the application and possible legal action.
Landlords should ensure all information provided by applicants is accurate and complete, and take appropriate action if any discrepancies are found.
Rental Application Sample
You can download a rental application template below in PDF or Word.
Frequently Asked Questions
When should I use a rental application form?
As a landlord, you benefit from using an application form if you are:
- A first-time landlord concerned about finding a suitable tenant
- A veteran landlord with bad luck with previous renters
- In a popular location or building that will attract many renters
- Concerned about the financial resources of an applicant
- Screening for more serious tenants who are willing to move in soon
What is a credit reference on a rental application?
A credit reference on a rental application is a person, organization, or business with which an applicant has had a financial relationship. Obtaining credit references should be part of your normal tenant screening process, in tandem with running a credit check.
The credit references will likely provide valuable information about a prospective tenant’s rent payment habits. Reviewing an applicant’s credit references gives excellent insight into the likelihood of a landlord receiving rent on time.
Examples of good credit references include:
- Banks
- Utility companies
- Previous landlords
- Local businesses that offered a rent payment plan
- Medical and dental offices
What if I don’t use a residential rental application?
If you do not use a residential rental application for tenant screening and research, you could cost yourself time and money. After a potential renter fills out your tenant application, you should take the time to review it closely.
Always contact the applicant’s current and previous employers and landlords, and run credit and background checks.
How long does a rental application take?
Generally, approving a rental application takes 24 to 72 hours. But, because many landlords want to check various personal and financial histories, and databases like those companies offering background checks have access to, this process could be longer.
Landlords should try to streamline their tenant screening process by using online legal forms when possible and hiring third-party companies to run essential checks.
Minimizing the time spent collecting and processing applicant data can lead to better initial experiences with tenants and more captured rental income.
What happens after a rental application is approved?
Once a rental application is approved, the landlord or property manager will typically follow these steps:
- Notify the Applicant: The applicant is informed of the approval, usually through an Approval Letter or a phone call.
- Draft the Lease Agreement: The landlord will prepare the lease agreement detailing the terms and conditions of the rental.
- Review and Sign the Lease: The tenant reviews the lease agreement, asks any questions, and both parties sign the document.
- Collect Security Deposit and First Month’s Rent: The landlord collects the necessary payments as stipulated in the lease agreement.
- Solve Move-In Arrangements: The landlord and tenant coordinate the move-in date and any additional details like property walkthroughs or key handover.
Are rental application fees refundable?
Rental application fees are generally non-refundable. These fees cover the cost of background checks, credit reports, and administrative processing. However, policies can vary by landlord and state laws, so it’s important to check the specific terms outlined by the landlord or property manager.
How to decline a rental application?
Declining a rental application should be done professionally and respectfully, as follows:
- Prepare a rejection letter stating that the application has been declined.
- While not always required, providing a general reason for the denial (e.g., insufficient income or poor credit history) can be helpful. Be careful to avoid any language that could be interpreted as discriminatory.
- Mail or email the letter to the applicant, ensuring that the communication is timely.
- Keep a copy of the rejection letter and any supporting documents for your records in case the applicant requests further explanation or decides to appeal the decision.
