5 Requirements Every Tenant Must Have Before Applying

Dustin Edwards • March 5, 2024

It's every landlord’s dream to find the perfect tenant who always pays on time, respects their lease agreement, and lives in the property for a long period of time. These tenants are rare, though not impossible. 


For landlords, spending the resources necessary to screen every tenant who fills a rental application properly is in your best interest. Below is a list of five requirements every tenant should have before applying for a rental property.


Security Deposit

A security deposit is an invaluable source of protection for landlords. In a perfect world, a security deposit wouldn't be necessary; however, some tenants are less than ideal. As of right now, the limit for a security deposit is two times the monthly rent for unfurnished units or three times for furnished units. However, after July 1, 2024, the law surrounding security deposit limits is changing.


According to the California Department of Justice, “After July 1, 2024, the limit is one month’s rent. For landlords who own no more than two residential rental properties that collectively include no more than four total units for rent, the limit is two times the monthly rent, but only if the landlord is a natural person or a limited liability company in which all members are natural persons.”


A security deposit is important to a landlord. While you’re meant to return it to your tenant once they’ve moved out, you’re allowed to use it for specific expenses. This includes any past-due rent, the cost of repairing damages that would be
considered wear and tear, and the costs of cleaning the property to the same level as when your tenant moved in. If the rental was furnished, you can use the security deposit to replace or restore the furniture if stated in the rental agreement.


Good Credit Score

A good credit score is desirable by landlords, and a car dealership prefers them for the same reason. Credit scores can signal a tenant's ability to manage finances. This means they’ll likely pay rent on time, reducing landlords' risk of missed payments. It also helps landlords select financially responsible tenants. This can aid in securing a stable income from their rental properties. Using a vetting tool is necessary for landlords to avoid potential financial losses, tenant disputes, and unwanted vacancies.


Rental History Evaluation

A good credit score can help landlords find tenants who can pay on time. A tenant's rental history can help landlords discover potential red flags a tenant may have. This can include evictions, convictions, late payments on rent, complaints, or other issues a credit score can't convey. In California, landlords are prohibited from considering convictions that occurred more than seven years ago. A tenant’s rental history can also show if they can reliably care for the property.


Income Verification

A tenant’s rental history and credit score can prove how well a tenant pays and approaches to renting a home. However, it's important to prove they’re still capable of earning enough to pay the asking rent. Verifying employment and income is crucial when a tenant is applying for a rental. This is usually done by requesting documents, including:

  • Check Stubs
  • Bank Statements
  • Tax Forms


Ideally, you want to see that the rent doesn't consume too much of the tenant's income. By providing proof of income, you show a landlord that a tenant has the potential to afford the monthly charge over the lease agreement's time frame.


Renters Insurance

Although California law doesn’t require renters insurance, it's a good habit for landlords to require it when applying for a rental. It's generally seen as a good idea for tenants to have some form of coverage to protect their assets since the landlord's property insurance isn’t liable for any damage to the tenant's items in the case of thefts, fires, or other events that can cause damages which are not covered by the landlord’s insurance.


Finding the perfect tenant may take time, but owning a rental property can be easier to manage once you find them. If you need help screening and vetting potential tenants, we invite you to call us today at (562) 888-0247 or fill out our
Owner Application online.

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One of the most important steps in successful rental property management is tenant screening. While marketing attracts applicants and leasing fills vacancies, the screening process determines whether a tenant will be reliable, respectful of the property, and consistent with rent payments. For Long Beach property owners, proper tenant screening can mean the difference between stable rental income and ongoing management problems.  Professional property management companies in Long Beach use structured screening procedures to evaluate applicants carefully while remaining compliant with fair housing regulations. A strong screening process protects your property, your income, and your long-term investment. Why Tenant Screening Matters Tenant screening is designed to reduce risk before a lease is signed by evaluating applicant reliability. When landlords skip or rush this process, they increase the likelihood of avoidable issues. These may include late or missed rent payments , lease violations, or property damage. Additional risks include neighbor complaints and costly eviction proceedings. Replacing a problematic tenant can be expensive and time-consuming. Between lost rent, repairs, and vacancy periods , a single bad tenant placement can cost thousands of dollars. Professional rental property management prioritizes careful screening because prevention is far easier than resolving problems later. The Tenant Application Process The screening process begins with a rental application. A thorough application collects information needed to evaluate whether an applicant meets the property's rental criteria . Applications typically request: Personal identification information Employment and income details Rental history References from previous landlords Authorization for credit and background checks Property managers review this information to ensure the applicant meets established qualification standards. Consistency is critical; property management companies in Long Beach must evaluate applicants using the same criteria to remain compliant with fair housing laws. Credit History Evaluation Credit history is one of the most common factors considered during tenant screening because it reflects financial reliability. A credit report provides insight into an applicant's behavior over time. This includes payment history, outstanding debts, and collections accounts. It also shows credit utilization, which helps assess overall risk. While a credit score alone does not determine whether someone will be a good tenant, it helps identify patterns of financial responsibility. Professional Long Beach property management services evaluate credit reports carefully while also considering income stability and rental history. Some applicants with lower credit scores may still qualify if they demonstrate strong income and a reliable rental record. Income Verification and Affordability One of the most important indicators of whether a tenant can consistently pay rent is income stability. Property managers verify income to ensure that applicants can reasonably afford the monthly rent. A common guideline is that tenants should earn at least two-and-a-half to three times the monthly rent in gross income. Income verification may include reviewing: Recent pay stubs Employment verification Bank statements Tax returns for self-employed applicants This step helps ensure the tenant's financial situation supports consistent rent payments. Professional property management uses income verification to reduce the risk of late rent or financial hardship. Rental History and Previous Landlord References Past rental behavior is often one of the best indicators of future tenant behavior. Property managers typically contact previous landlords to verify information such as: Payment history Lease compliance Property condition upon move-out Whether the landlord would rent to the tenant again A strong rental history suggests the applicant understands tenant responsibilities and has demonstrated reliability in the past. Experienced property managers in Long Beach California pay close attention to rental history because it can reveal patterns that credit reports alone may not show. Background Screening and Compliance Background screening may also be part of the tenant evaluation process. This can include criminal history checks conducted in compliance with fair housing regulations. It is important that background screening is performed consistently and in accordance with local and state laws. California and many cities have regulations governing how criminal records can be considered in rental decisions. Professional property management companies in Long Beach stay current on these regulations to ensure that screening practices remain compliant. This protects property owners from potential legal risks related to discriminatory screening practices. Establishing Clear Rental Criteria Before screening applicants, property managers establish clear rental criteria. These criteria outline the minimum standards applicants must meet to qualify for the property. Typical criteria may address: Minimum income requirements Credit history expectations Rental history standards Occupancy limits By establishing criteria in advance, property managers ensure that all applicants are evaluated fairly and consistently. Clear criteria also help set expectations for applicants and streamline the approval process. The Importance of Fair Housing Compliance Tenant screening must always comply with federal, state, and local fair housing laws . 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