When a unit has been sitting empty for a few weeks, it is natural to feel pressure to approve the next applicant who comes along. With vacancy in Central Wisconsin at the highest level we have seen in recent memory, we understand that pressure better than anyone.
But here is what decades of managing rentals have taught us: a vacant month is expensive, and the wrong tenant is far more expensive. Missed rent, property damage, an eviction filing and a long turnover can easily cost an owner several months of income. Careful screening is the single most effective way to protect your property and your return, and it matters even more when the market is soft.
Here is a look at how we evaluate every applicant, and why we hold to our standards even when the phone is not ringing as often.
Every Applicant, the Same Process
Consistency is the foundation of good screening. Every adult applicant goes through the same steps, is measured against the same written criteria, and is reviewed by our team in the order applications are completed. That consistency protects you in two ways: it leads to better tenant decisions, and it keeps your property in compliance with fair housing law.
Our written criteria are shared with applicants up front, so everyone knows what we look for before they apply. That transparency saves time on both sides and helps us attract applicants who are a good fit from the start.
What We Look At
Identity verification
We confirm that every applicant is who they say they are. This sounds basic, but rental application fraud has grown in recent years, including fake pay stubs, borrowed identities and altered documents. Verifying identity at the start keeps the rest of the process honest.
Income and ability to pay
We verify that household income is stable and sufficient to comfortably cover the rent, typically around three times the monthly rent. We do not just take a pay stub at face value. Depending on the situation, we may contact employers directly, review bank statements, or verify benefits and other lawful sources of income.
Credit history
We review credit reports for the overall pattern rather than a single number. A medical collection or a rough patch years ago does not tell us much. A recent history of unpaid utilities, past-due rent owed to a prior landlord or a long trend of missed obligations does.
Criminal background
We review criminal history in a way that is consistent with fair housing guidance. Rather than applying blanket bans, we consider the nature, severity and recency of any conviction and whether it bears on the safety of residents and the property.
Why We Don't Lower the Bar When the Market Slows
When vacancy rises, some landlords respond by loosening their standards to fill units faster. In our experience, that trade almost always costs more than it saves.
- Problem tenancies take months to resolve. If a tenant stops paying, the eviction process in Wisconsin can take weeks or longer, and lost rent, court costs and turnover expenses add up quickly.
- Damage outlasts the lease. Repairing a unit after a difficult tenancy can cost more than several months of vacancy.
- Good neighbors keep good tenants. In multi-unit buildings, one problem resident can drive out the reliable long-term tenants you worked hard to keep.
- Strong tenants stay longer. A well-qualified tenant who renews year after year is worth far more than the few weeks it took to find them.
Instead of lowering standards, we focus on widening the pool of qualified applicants. That means pricing the unit to the market, presenting it well with professional photos, floor plans and 3D walkthroughs, responding to inquiries quickly, and making the application process simple. When more qualified people apply, there is no need to compromise.
Fair Housing: Protecting You and Your Property
Screening is also where owners face the most legal risk. Federal fair housing law and Wisconsin's Open Housing Law prohibit discrimination based on a long list of protected classes. Wisconsin's list goes beyond federal law and includes characteristics such as marital status, age, sexual orientation, lawful source of income and status as a victim of domestic abuse, sexual assault or stalking.
That is why every decision we make is based on objective, written criteria that are applied the same way to every applicant. It is also why we handle requests for reasonable accommodations, such as assistance animals, through a consistent, documented process. A single fair housing complaint can be costly and time-consuming for an owner, and a consistent process is the best defense.
What This Means for You
As your property manager, our job is to fill your units with tenants who pay on time, take care of the home and stay for the long term. Our screening process is built to do exactly that, in a strong market or a slow one.
If you have questions about our screening criteria, want to talk through an application on your property, or are wondering how to attract more qualified applicants to a unit that has been sitting, please reach out. We are always glad to walk through it with you.
