The primary goal of the screening process is to find a desirable tenant, typically a stable occupant who is a good credit risk and will not damage the premises or disturb other tenants.

1. How to Properly Screen
Your Tenant
Catherine E. Ybarra, Esq
Simone & Associates
3702 4th Avenue
San Diego, CA 92103
Telephone: (619) 235-6180
landlordslegalcenter.com

2. What is the purpose of screening
applicants?
The primary goal of the screening
process is to find a desirable tenant,
typically a stable occupant who is a
good credit risk and will not damage
the premises or disturb other tenants.

3. What factors can I use when screening a
new applicant?
Credit Standing
Employment History
Amount of Income
Rental History
Information Provided by the
Applicant’s References

4. What is the purpose of a rental
application?
 The purpose is to obtain information about an Applicant to
determine if that person will be a stable, responsible
individual who will have the ability to pay the rent.
 The application should contain the applicant's express
written authorization for the landlord:
1. to contact all persons or firms named as references,
former landlords, or employers;
2. to verify the contents of the application, including
obtaining a credit report on the applicant;
3. A written application must be signed by the applicant
before a landlord can obtain a credit check.

5. What steps can I take to properly screen
my tenants?
1. Have all adult applicants fill out a
rental application.
2. Verify all information on the rental
application.
3. Obtain a credit report for all adult
applicants.

6. Are there questions I am not able to ask
on the rental application?
 It is illegal for the Landlord to ask a tenant
questions about race, color, religion, sex,
sexual orientation, marital status, national
origin, ancestry, familial status, source of
income, disability, age, medical condition,
victim of domestic violence or whether you
have persons under the age of 18 living in
your household.
 Government Code Section 12955(b).

7. Are there questions I am not able to ask
on the rental application?
 It is illegal for the Landlord to ask Tenant any questions
and/or require statements regarding or based on the
immigration or citizenship status of a tenant, prospective
tenant, occupant, or prospective occupant of residential
rental property.
 Civil Code 1940.3(b)

8. Are there any questions that I can ask
but must be careful about?
 A landlord can’t discriminate because of an applicant’s source of
income HOWEVER you are allowed to ask what the applicant’s source
of income is.
 You can ask an applicant how many individuals will be living in the
rental unit and you can establish a reasonable standard for the
number of people per square feet of your rental unit HOWEVER you
cannot use the excuse of overcrowding as a reason to refuse to rent to
households with children if you would rent to the same number of
adults.
 Example: Your reasonable standard is 150 square feet for the each
occupant. You are renting a 600 square foot apartment. You cannot deny
an applicant that is a single mother with three children if you would have
accepted an applicant that is requesting to have three adult roommates.

9. What are some red flags to look out for
on a rental application?
 Applicant does not complete the full application.
 Applicant is pressuring you to let them move in quickly.
 Applicant is unable to verify name with a government ID.
 Social Security numbers on government ID and application do
not match.
 If after verifying employment you have a bad feeling, use the
internet or the phone book to make sure the phone number of
the business is correct.
 Applicant reports that they have filed bankruptcy or been
evicted.

10. Do you know of anywhere I can obtain a
rental application?
 The AOA provides an application
to Rent or Lease (FORM 100A).
 California Association of Realtors
has a form available to its
members
 Certain online screening agencies
will provide an online app

11. How do I know if the applicant is being
truthful?
 You need to verify the information on the
application.
Income – Request paystubs, 1099s, award
letters and call employer
Personal – Request ID or drivers license,
passport
Rental History – Send a letter/call previous
landlord
Financial History – Run credit check

12. How much can I charge an applicant for
a credit report?
 You can charge $47.72 as an application fee
to apply to out of pocket costs to cover
credit reporting and checking personal
references. This amount changes every year
based on the Consumer Price Index.
 Civil Code Section 1950.6

13. How do credit scores work?
850 – Highest Possible Score
850 to 750 – Excellent Credit
719 to 600 – Good Credit
599 to 300 – High Risk

14. What sections of the applicants credit report
are most important when making a decision?
Revolving accounts
 This section details the accounts — both open and closed — and
payment history of the applicant. This will show you how consistently
they meet their monthly financial obligations.
Inquiries
 This outlines the number of inquiries and which institution or business
made the inquiries.
Public records
 This section includes the types of public records filed against your
applicant. If there are eviction cases, bankruptcies, liens or other
filings, you will want to get more details from the applicant.
Collections
 This section shows the accounts that are in collection, how much has
been paid and if they are still active. This is where an unpaid medical
bill or student loan will show up.

17. What is the Fair Credit Reporting Act (FCRA)?
When you use a consumer report (rental
history report, credit report, criminal
record report, etc) to make a decision
about renting to a tenant you must
comply with the FCRA.
The Federal Trade Commission
enforces the FRCA.
https://www.ftc.gov/tips-advice/business-center/guidance/using-consumer-
reports-what-landlords-need-know

18. What is an Adverse Action?
 An adverse action is any action by a landlord that is
unfavorable to the interests of a rental applicant or
tenant
Denying an application;
Requiring a co-signer on the lease;
Requiring a deposit that would not be required for
another applicant;
Requiring a larger deposit than might be required
for another applicant;.
Raising the rent to a higher amount than for
another tenant.

19. FRCA requires you to send the applicant
notice when you take an adverse action
You can give the notice orally, in writing
or electronically.
The Federal Trade Commission advises
that it is best that the notice is given in
writing.
You must send an adverse action notice
even if the consumer report was only a
small part in the overall decision.

20. What does the adverse action notice
need to include?
 The name, address and phone number of the consumer
reporting company that supplied the report;
 A statement that the company that supplied the report
did not make the decision to take the unfavorable action
and can’t give specific reason for it; and
 A notice of the person’s right to dispute the accuracy or
completeness of any information the consumer reporting
company furnished, and their right to get a free report
from the company if the person asks for it within 60 days.

21. What happens if I do not follow the
FCRA and send an adverse action notice?
 Applicant can sue you in Federal court for
damages, attorney’s fees and court costs. If your
actions are intentional and you do not follow the
FCRA you may also be responsible for punitive
damages.
 Federal Trade Commission or the state may sue
you for noncompliance and be awarded civil
penalties.

22. What is the new HUD Guideline on
Criminal Background Checks?
 “Criminal history-based restrictions on housing
opportunities violate the Act if, without
justification, their burden falls more often on
renters or other housing market participants of
one race or national origin over another (i.e.,
discriminatory effects liability).”

23. What are the types of discrimination on
criminal records?
Indirectly – restrictions that indirectly create negative
impact on minority groups
 Ex: Landlord has a policy of not renting to persons with
certain drug convictions that indirectly affects Hispanics
more than other protected classes.
Directly – directly targeting a specific protective class
 Ex: Landlord rejects an Hispanic applicant based on his
criminal record, but admitted a non-Hispanic White
applicant with a comparable criminal record.

24. — Services Offered —
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Telephone: (858)-663-7034
email: info@singleoakrealty.com
www.singleoakrealty.com

25. Questions?
Simone & Associates
3702 4th Avenue
San Diego, CA 92103
Telephone: (619) 235-6180
landlordslegalcenter.com
info@simonelawfirm.com