Screening tenants is one of the best reasons to work with Bell Properties. We have an objective, consistent process in place that meets the requirements of all fair housing laws and Equal Opportunity Housing requirements.
As tenants move from application to approval, it’s important to know what we’re looking for, where our non-negotiable deal breakers happen to be, and how we evaluate applications in a way that ensures we’re placing only the most qualified tenants in the California rental properties we manage.
Let’s talk about tenant screening, the results of a tenant background check, and how property management services provided by our talented team can prevent the risk of renting to the wrong resident as well as the risk of violating state and federal laws.
California Property Management and Rental Applications
Who needs to fill out an application?
Anyone who is going to reside in the property and is 18 years of age and older.
Landlords who are not sure where to get a rental application should never just grab a template off the internet. Contact us at Bell Properties instead. We use applications that are compliant with all California rental laws. A well-structured rental application helps us to evaluate tenant suitability. We gather the necessary information to assess a tenant’s ability to meet lease obligations. The right application will also protect against discrimination claims. A standardized process treats all applicants equally.
Here's a breakdown of the essential components every California rental application should include:
1. Personal Information
Our applications collect basic details such as the full names of all occupants, date of birth, and contact information. This information is fundamental for identifying potential tenants and comparing the information that’s provided on the application to what’s provided during credit and background reports. We want to see consistency and verify information.
2. Employment and Income Verification
Understanding a potential tenant’s financial stability is crucial to knowing that the rent will be paid on time every month. We’ll ask for employment information and monthly income. That income is verified by collecting pay stubs, offer letters, bank statements, or tax forms.
3. Rental History
Rental history provides insight into the applicant’s behavior as a tenant. We collect previous addresses over the last five years and we ask for the names and contact information of past landlords. We want to know how long a tenant stayed in place and what their reason for leaving previous rentals happened to be.
Every application requires a signature that gives us permission to run a credit check and a background check.
Application fees should be collected for each tenant over the age of 18 who will be screened. California law caps the amount you can charge for a fee. In 2024, that amount is $62.02.
Privacy laws protect applicant information and we’re very careful with the data that we gather. Before a tenant even turns in an application, we make sure to share our qualifying rental criteria so the potential applicant knows what we’re looking for and what’s required before they’re approved for a home.
Credit Scores and Credit Reports in Tenant Screening
Establishing a minimum credit score can be a useful part of the qualifying rental criteria. It allows us to automatically qualify or disqualify an applicant for further screening.
It’s more than the credit score, however.
By evaluating the full credit report, we can focus more on the overall patterns that can demonstrate how an applicant handles money, debt, and bills. This is more important than the one number, especially when it comes to red flags that might pop up in a credit report.
It’s not always easy to find a tenant with perfect credit. We don’t require that. Instead, it’s important to find a tenant with acceptable credit, which means there aren’t any debts owed to former landlords, apartment communities, or management companies. We like to look for overdue or unpaid utility bills. These are the things that might caution us against approving a tenant for a rental home we manage.
Our technology gives us access to all of the credit information we need for prospective tenants. Not all independent landlords can access this data, however. Contact us at Bell Properties for any help pulling credit reports and understanding what can be found there.
Background Check for Renters in California
Some cities in California do not allow a criminal background check before a tenant is approved to move into a property.
Background checks are necessary, however, in order to understand the history of a tenant’s behavior in their rental homes and in the larger community. We check everything that we’re legally permitted to review, including terrorist watch lists and sexual predator databases.
Housing Vouchers and Income Sources
California’s fair housing laws are stricter than the national fair housing laws. One of the protected classes listed in California’s laws is source of income. Rental property owners, landlords, property managers, and other agents cannot discriminate against an applicant based on where they get their income. That means if someone wants to identify housing vouchers as a source of income, they can.
Years ago, California rental property owners would be able to advertise their properties as prohibiting Section 8 tenants. That’s no longer permissible. Prospective tenants who have housing voucher benefits can apply for any rental property, and they have to be considered. If they’re otherwise qualified for the property with their housing voucher, they also have to be approved.
This is an easy mistake for a lot of self-managing landlords to make. Anyone who is unclear on the law or unsure of how to proceed with an application from a Section 8 tenant should contact us at Bell Properties before proceeding with the screening process.
Deal Breakers in Tenant Screening Reports
We’re looking for residents who can pay rent on time, take care of their California rental property, follow the terms of the lease agreement, communicate openly and transparently, and renew their lease agreements year after year to prevent vacancy and turnover.
That’s what we’re looking for. Here are a few things that we aren’t looking for:
Past Evictions
A history of evictions is a major red flag. It suggests issues with previous landlords and a potential for similar problems in the future. We always conduct a nationwide eviction check as part of our background check because not all evictions show up in credit reports.
Bankruptcy
A history of bankruptcy can be a significant red flag during the tenant screening process. While bankruptcy can happen for various reasons, it often signifies past financial struggles that may still influence a potential tenant's ability to manage rent payments effectively.
Low or Undocumented Income
We have to ensure that potential tenants can comfortably afford rent, and we do that by verifying their income. A common guideline is that rent should not exceed 30% of a tenant's gross monthly income. We request pay stubs or bank statements as proof of income and if a tenant cannot provide that during the application process, we are unlikely to approve them for a rental home.
Criminal Background
While it's essential to comply with Fair Housing Laws, a criminal background check is still a valuable tool. Whether we’re able to conduct a criminal check during the application process or after a tenant is approved, we are unlikely to allow a tenant with a history of violent crimes or felonies to move into a property.
Inconsistent Rental History
A spotty rental history with frequent moves or lease breaks can be a warning sign. It may indicate instability or an inability to maintain a long-term rental agreement. We can verify references from previous landlords to learn more about the applicant's rental behavior.
Misleading Information on Applications
If an applicant is unwilling or unable to provide complete and accurate information on their application, it may be a sign of dishonesty. We verify all provided details to ensure transparency and trustworthiness.
Not sure what all of the data means when a background check comes back? Contact Bell Properties to help with evaluating rental applications. We know what to look for and what to avoid.
Equal Opportunity Housing
We incorporate Equal Opportunity Housing language into our marketing materials as well as our tenant screening process. This is an important way to promote fairness and diversity within California’s diverse rental markets. It helps even experienced property managers ensure compliance with the Fair Housing Act and state laws, which prevent discrimination based on a list of protected classes.
By explicitly stating a commitment to equal housing opportunities, we are demonstrating our dedication to ethical practices. We’re creating an inclusive environment for all potential tenants. This not only broadens the pool of qualified applicants but also establishes respect and trust within the community.
Including such language reinforces our own reputation as a fair and responsible California property management company that values equality and non-discrimination in housing.
Let’s talk more about moving from application to approval and choosing the best tenants for your California rental property. Contact us at Bell Properties to learn more.
