Rental Application

A rental application is a formal document that potential tenants complete to apply for a residential rental property. It serves as a crucial tool for landlords and property managers to collect essential information about applicants, helping them make informed decisions regarding whom to rent to.

A rental application forms one key part of the process for landlords when screening potential tenants allowing them to gather essential information on the tenant and ensure they fit with the landlord's established set of tenant criteria.

By evaluating the details provided in a rental application paired with the details form a tenant screening report and comparing them with these their criteria, landlords can gain insights into an rental applicant’s suitability, financial stability, and potential risks.

Purpose of a Rental Application

The primary purpose of a rental application is to gather key information about prospective tenants. This data allows landlords to assess the likelihood of timely rent payments and responsible behavior throughout the tenancy. An effective rental application will enable landlords to evaluate not just the applicant's ability to afford the rent but also their history as a tenant.

Related: Free Residential Rental Application Form Template

Key Components of a Rental Application

A comprehensive rental application typically includes several sections, each designed to capture specific details about the applicant and their background.

1. Property Details

The application should start with clear property details, including the address, rent amount, and security deposit requirements. This section sets expectations upfront and helps prevent unsuitable candidates from applying for properties they cannot afford.

2. Personal Information

This section collects essential personal details, including:

• Name: Essential for authenticity and fraud prevention.
• Social Security Number (SSN): While common, collecting an SSN is not mandatory. If you decide to request it, ensure that it is stored securely.
• Occupants: Information on additional occupants is crucial for tenant screening.
• Contact Information: Accurate phone numbers and emails are necessary for follow-up questions.
• Date of Birth: Used to cross-check identities but must comply with Fair Housing Laws.
• Government-Issued Identification: Details about the applicant's ID help verify their identity.

3. Tenant Rental History

Understanding an applicant's previous living situations is vital. This section typically includes:

• Current Residence: Information about the applicant's current living situation, including the type of residence and move-in/move-out dates.
• Previous Residences: Listing prior addresses and landlords provides insights into past tenant behavior.

4. Employment and Income Information

This section evaluates whether the applicant's income is stable and sufficient to cover rent. Key elements include:

• Employer Information: Collect details about the employer for verification purposes.
• Income Details: Gather information about all sources of income to assess financial eligibility. A common benchmark is that tenants should earn at least three times the rent amount.

5. Pets and Vehicles

Collecting information about pets and vehicles helps ensure compatibility with the property’s policies. It’s also crucial for anticipating any potential issues, such as parking constraints or unauthorized pets.

6. Miscellaneous Information

The miscellaneous section often contains additional questions that provide further insight into the applicant's background. Common inquiries include:

• Have you filed for bankruptcy?
• Have you faced eviction or been requested to vacate?
• Do you smoke?

These questions can reveal red flags that warrant further investigation.

Related: 15 Prescreening Questions to Ask Prospective Tenants

Rental Application Laws

Navigating rental application laws is essential for landlords to ensure compliance with federal, state, and local regulations. Understanding these laws can protect landlords from potential legal pitfalls and discrimination claims.

Application Fees

Many landlords charge an application fee to cover the costs of screening tenants. However, these fees must be reasonable and cannot be used as a deterrent to specific applicants. Normally, the fees landlords charge cover the actual cost of running a credit or screening report. Some states have caps on the maximum amount that can be charged, and landlords must disclose what the fee covers, such as credit checks or processing costs.

Related: Rental Application Fee Laws By State

What Can and Cannot Be Asked On A Rental Application

Landlords are permitted to ask certain questions to assess a tenant’s suitability. However, they must avoid inquiries that could lead to discrimination claims based on protected classes under the Fair Housing Act (FHA). This includes:

• Prohibited Questions: Landlords cannot ask about race, color, national origin, religion, sex, familial status, or disability. Additionally, inquiries about an applicant’s sexual orientation or source of income may also be deemed discriminatory in some jurisdictions.
• Permissible Questions: Landlords can ask about rental history, employment, income, and personal references, provided these questions are applied uniformly to all applicants.

Fair Credit Reporting Act (FCRA)

The FCRA plays a crucial role in how rental applications are processed, particularly concerning background checks. Landlords must comply with the following guidelines:

• Disclosure: If a landlord intends to run a credit check or background report, they must inform the applicant and obtain their written consent.
• Adverse Action Notices: If an application is denied based on information from a credit report or background check, the landlord must provide an adverse action notice. This notice should include the reason for the denial, the name of the reporting agency, and the applicant’s right to dispute the information.
• Data Accuracy: Landlords are responsible for ensuring that the information they obtain is accurate and used fairly in the decision-making process.

Want to know more about rental application and screening laws in your state? Read our state specific landlord tenant legal guides here.

Collecting Rental Applications with Landlord Studio

Landlord Studio is a powerful property management software that streamlines the rental application and tenant screening process. Here’s how it can enhance your application process:

1. Create Free Listings: You can create free rental listings on Landlord Studio and syndicate them across popular rental sites like Zillow and Trulia. This maximizes your property's exposure to potential tenants.
2. Automatic Pre-Screening Reports: As leads come in, you can run automatic pre-screening reports. This process quickly filters candidates based on predefined criteria, ensuring you only engage with qualified applicants.
3. Easy Application Management: Once you identify qualifying applicants, you can ask them to fill out the rental application directly through the app. All tenant details and data are accessible in one place, making it easy to review, compare, accept, or decline applications. All you need is an email address, no need to collect SSN's.
4. Comprehensive Tenant Screening Reports: With Landlord Studio, you can run a full tenant screening report through TransUnion SmartMove. This report includes crucial information such as credit scores, criminal background checks, eviction histories, and income insights.
5. Centralized Information Storage: Store all signed rental agreements and related documents securely within Landlord Studio for easy access later.

Fill vacancies faster. Create your free Landlord Studio account today to collect rental applications, screen tenants and have complete confidence in your final tenant decision.

About Rental Applications: Conclusion

A rental application is a vital component of the tenant screening process. It provides landlords with the necessary information to assess potential tenants effectively. By collecting detailed information on property preferences, personal details, rental history, employment status, and more, landlords can make informed decisions that reduce risks associated with renting.

Understanding rental application laws ensures compliance and protects against discrimination claims. Utilizing tools like Landlord Studio not only streamlines the collection and review of rental applications but also enhances the overall tenant screening process, helping landlords find suitable tenants efficiently.