Tenant Screening Checklist for Maryland Landlords (8-Step Process)
Among a landlord’s most important decisions is to properly screen rental applicants. Once you get interest from your rental advertisement, choosing a great applicant is the key to a successful rental property.
A perfect tenant contributes to business growth by paying the monthly rent on time and in full each month as well as complying with the conditions under the lease agreement. Finding long-term tenants will also help with your financial security as a landlord.
Since choosing the right tenant for your properties is so important, we advise that a Maryland landlord develops a process for tenant screening and creating tenant screening reports to make the process thorough and the same for every candidate. You’re trusting whichever applicant you choose to keep your Maryland rental business reasonably well-maintained, so a detailed tenant screening process allows you to make the most well-informed decision possible.
What’s Considered a Quality Tenant?
The right renters naturally make timely rent payments and maintain your unit in good condition. The factors to look for during a tenant screening are:
- Reliable renters who can afford the rent so you are not left with unpaid rent or late payments
- Someone with a stable job and a clear criminal background check
- An applicant who has a history of paying the rent dues on time and respecting the lease agreement
- Someone who displays a clean criminal history
- A responsible person who can pay rent promptly
The 8-Step Tenant Screening Process (Video Walkthrough)
In the video below, Michael McKenna breaks down the 8 most critical steps in a consistent tenant screening process used by Maryland property managers. This framework ensures every applicant is evaluated fairly, legally, and thoroughly.
The 8 key screening criteria covered in the video include:
- Credit check
- Income verification
- Debt-to-income ratio (DTI)
- Employment verification
- Identity verification
- Landlord references
- Pet verification
- Criminal background check
Many of these steps are expanded on in detail throughout the tenant screening stages below.
Tenant Screening Process in Maryland:
Conducting a Pre-Screening
Given that you’ll be reviewing several rental applications for your Maryland house or apartment, pre-screening will focus your search and help save you invaluable time. Here are things to remember when doing your preliminary screening on your rental applicants:
- Ensure that your rental listing includes your requirements
- Ask vital questions at the start of your interaction with an applicant
- Schedule a face-to-face meeting when doing a showing
Pre-screening allows you to detect any red flags right away. Most prospects who are unqualified are turned off by requirements, so you can expect them to lose interest quickly or become unresponsive. Don’t waste time chasing after those types of applicants. Be ready to entertain the ones who are interested and meet the requirements of a high-quality tenant. This will make sure that your tenant is also happy with the situation during their tenancy.
Asking a Prospective Tenant to Submit a Completed Rental Application
The rental application for your Maryland home should provide the following information about your prospective tenants:
- Contact information
- Present residential address
- List of rental history with the contact information and names of any current and previous landlords
- Current job and employment history, job title, salary, period of employment, employers, and references (with contact information)
- Consent from the applicant to conduct credit report and background checks
This process allows you to review prospective tenants' financial income status. If the applicant has a monthly income that is three times the rent rate, it’s a good indicator that they can afford the rent. Some landlords do decide on a prospect with an income lower than three times the rental amount, but only when said tenant has a good history of paying the rent on time.
Calling References from the Prospective Tenant’s Office of Employment
Employment verification is a vital step for every landlord. It helps landlords gauge the accuracy of the income and credit information given by the applicant. They can also verify that the tenant’s story matches with the reference’s narrative.
It’s not rare for some tenants to use fake references. Be aware of scams to ensure that you’re accepting the right tenant for your Maryland home.
Contacting Previous Landlords
It’s always a good idea to call an applicant’s present and former landlords. You never know if the applicant has been evicted, committed a violation, or skipped payment, for example. Some current landlords might even lie to remove the renter from their rental property, so contacting a previous landlord can help solidify your data-gathering stage. Former landlords are prone to telling the truth about whether or not someone is a good tenant.
Some applicants can ask their friends or relatives to stand in as a landlord. To avoid being misled, you can schedule a property showing with a former landlord to verify if they own a rental space. This should be done before asking for more information about the prospective tenant.
Legally Performing Tenant Background Checks and Credit Checks
Among the data to verify when reviewing credit and background during tenant screening for your Maryland rental property are:
- Credit score and credit report
- Eviction history
- Criminal records
- National sex offender report
- Verification of tenant identity and income
- Rental history
A satisfactory credit score should hit 680 and above. Landlords and property managers can also use their own judgement when they screen prospective tenants. Situations differ and a certain credit score or sub-optimal credit report may be okay given a verified explanation from the prospective tenant. Just ensure that the tenant doesn’t have a large debt, large red flags in their credit report, a criminal record or past evictions.
Deciding to Accept or Reject a Prospect’s Rental Application
Once you’ve completed the 5 stages of tenant screening process above, you’re at the point where you can finally make a decision. Before welcoming the new tenant into your Maryland investment, you can get in touch with them through a phone call or email. Leave clear instructions on the next step of signing a leasing contract. It's best to have this meeting in person, so make sure your unit looks ready for the move-in stage.
If the applicant didn’t meet your criteria during the tenant screening, you can write or email your decision to reject their rental application. This makes it easy to track the denial should a lawsuit emerge regarding fair housing laws or otherwise unfair rejection.
When performing a tenant screening in your Maryland rental property, it’s best for landlords to be familiar with the Fair Housing Act. Fair housing laws prevent the discrimination of a tenant based on the protected classes of race, religion, gender, family status, national origin, sexual orientation and other such protected classes. However, a Maryland landlord has every right to turn down an application due to a low credit score, insufficient income or lack of credible references. Denying a tenant for these reasons, and not any protected reasons like gender or national origin, for example, would not be discrimination and would not be violating local fair housing laws or federal fair housing laws.
Evaluating the Debt-to-Income Ratio (DTI)
A tenant’s debt-to-income ratio (DTI) compares how much they earn each month to how much they owe in recurring debt. This metric helps landlords determine whether a prospective tenant can realistically afford the rent after accounting for existing financial obligations.
In Central Maryland, many property managers aim for a DTI of around 40% or lower. This means that no more than 40% of the applicant’s gross monthly income goes toward debt payments, including rent.
- A lower DTI generally indicates:
- Better financial stability
- Lower risk of late or missed rent payments
- Greater ability to handle unexpected expenses
Even if a tenant meets the income requirement, a high DTI could be a red flag that they are financially overextended.
Pet Verification and Pet Screening
If a prospective tenant has pets, it’s important to conduct proper pet verification as part of the tenant screening process. Pets can impact property condition, insurance policies, and even liability.
Pet screening should include:
- Type, breed, and size of the pet
- Proof of vaccinations (especially rabies)
- Local licensing, if required
- Any history of aggressive behavior
Landlords should also confirm that the pet complies with:
- Local regulations
- Insurance restrictions
- HOA or community rules
Proper pet verification helps protect your rental property from unnecessary damage and ensures a safe living environment for other tenants and neighbors.
Bottom Line
When renting out your Maryland property, it’s recommended to take the process very seriously as you screen tenants, including staying knowledgeable of fair housing laws. Screening tenants and creating tenant screening reports helps you avoid stress down the line by protecting your investment property from excess property damage and making property ownership easier.
If you’re a busy Maryland property owner, you might not have enough time to provide your own tenant screening services and tenant screening reports. Consider engaging the services of a trusted management company to take care of this process for you with tenant screening services. Contact the reliable property managers at McKenna & Vane Property Management for a beneficial and meticulous tenant screening services.
