The Rental Application Process: A Landlord's Guide

Bad tenants are often a sign of a weak rental application process. That’s why building a strong one is your first and most crucial step as a landlord.

According to the US Census, the national homeownership rate is 66%, which means roughly one in three households rents their home. As this rate continues to rise, demand for rentals remains high.

Many landlords now receive multiple applications per vacancy, making it even more important to have a system in place to identify qualified renters quickly and protect your property.

A strong apartment rental application process includes verifying income, rental history, and references, all of which help landlords identify reputable renters and avoid future issues, such as missed payments or evictions.

Fortunately, property management software like TurboTenant simplifies the apartment rental application process with free online forms, tenant background checks, digital lease agreements, and more.

In this guide, we’ll break down the rental application process, highlight legal tips and mistakes to avoid, and offer tools to help you move faster and smarter.

What Is the Rental Application Process?

The rental application process is the set of steps a landlord takes to screen and approve a new tenant, whether for an apartment or house. It begins when a tenant submits an application form and ends with a decision (either approval or denial).

A complete application form includes personal information, residence history, employment and income details, and consent for background checks, which can help landlords quickly assess the applicant’s identity and determine whether they’re a good fit.

Next, credit, criminal, and eviction checks are conducted to reveal any past issues, which typically take 1-3 days and cost around $30-$50 per applicant, usually covered by the application fee. Landlords must obtain written consent for these reports.

One of the most critical parts of the rental application process is confirming the applicant’s ability to pay rent. Landlords typically require pay stubs, employer letters, or bank statements as proof of income. Ideally, the tenant’s monthly income should be about three times the rent. The landlord may also contact the employer to verify the job and salary.

Most applications will also ask for personal references and contact information for previous landlords to gain insight into the applicant’s past behavior. For example, did they pay rent on time and take care of the property? A brief conversation with a former landlord can confirm whether the tenant was responsible or reveal problems that may not be apparent on paper.

Finally, the landlord reviews all the information and selects a qualified applicant who will reliably pay rent and adhere to the lease terms.

Step-by-Step Breakdown for Landlords

1. Create or Choose an Application Form

Start with a rental application form that collects information such as:

• Personal: Full name, contact info, date of birth, Social Security Number
• Residence History: Current and past landlords with reasons for moving
• Employment/Income: Job title, duration, income, and supporting documents like pay stubs
• References: Previous landlords and emergency contacts
• Other: Number of occupants, pets, and written consent for background/credit checks

From here, you can choose between paper or online forms. Just keep in mind that paper forms are often outdated and may not meet current legal requirements.

We recommend you use online forms. They’re faster, cleaner, and automatically organized. TurboTenant’s free applications include standard questions, e-signatures, optional custom fields, and more, all compliant with FCRA and fair housing rules.

2. Collect the Application Fee

Rental application fees typically cover the costs of screening, including background, credit, and eviction checks. The national average is around $50 per application, although some states cap fees or ban them entirely (e.g., $20 in New York, no fees in Massachusetts). Always check your local laws.

With TurboTenant, applications are free for landlords, as tenants pay the screening fee directly, allowing you to skip the hassle and awkwardness of collecting fees yourself.

Best practices:

• Collect the fee online, if possible, to avoid handling cash or checks and to maintain a timestamped record.
• Process the application and run screening reports after the tenant pays the fee.

3. Verify Employment and Income

Once you have an application (and fee), the first screening step is to verify the tenant’s income and employment. The application form will provide the basics (stated employer, job, income), but now you need to substantiate them.

Ask for pay stubs (last 2-3 pay periods), a letter of employment, tax returns (for self-employed applicants), or bank statements.

You can contact the employer’s HR department or the listed supervisor to confirm that the tenant is indeed employed there and that the stated salary is accurate. Most employment verifications are quick, often completed in 1-2 days.

Calculate Income vs. Rent

A standard guideline is that income should be about three times the rent. In other words, monthly gross income should equal three times the monthly rent. This isn’t a strict rule, but rather a benchmark. If an applicant’s income falls well below that level, you might need additional assurances, such as a guarantor or a larger security deposit if allowed.

Red Flags to Watch For

Be on the lookout for inconsistent or fake documents, like pay stub numbers that don’t add up, or an employer that sounds made-up. If something looks off, you can use third-party verification services or request additional proof (like bank deposits matching the payments).

4. Run Background and Credit Checks

With written consent, use a screening service to pull a full tenant background check, including credit, criminal, and eviction history.

Watch for red flags, such as multiple late payments, recent evictions, or violent convictions.

Set clear criteria (e.g., 650+ credit score, no evictions in the past 7 years, etc.) and apply them consistently.

To be FCRA compliant, if you reject these reports based on them, issue them an Adverse Action Notice.

5. Contact References and Previous Landlords

While the credit/background check is processing, you can reach out to the references provided by the applicant. There are two main types of references to check:

Previous landlords/property managers

Call the prior landlord (especially the most recent one) and ask a few simple questions: Did the tenant pay rent on time? Are there any issues or damages? Would you rent to them again? Past landlords can confirm whether the person was a good tenant or not.

However, beware of fake references. A bad tenant might list a friend’s contact instead of the real landlord. To catch this, check county property records or confirm that the person you’re calling actually owned or managed the property in question.

When you call, rather than asking “Is John your former tenant?” say “I’m calling about the apartment at 123 Main St. Can you tell me about the tenant who lived there?” This way, a legitimate landlord will immediately recall John at that address, whereas a fake reference might get confused.

Personal or professional references

These might be employers, colleagues, or personal acquaintances that the applicant listed. They can speak to the person’s character and reliability.

6. Make a Decision and Notify the Applicant

Compare each applicant to your screening criteria and choose the most qualified.

• If approved, notify them within 24 to 48 hours and send a lease for e-signature with the required disclosures.
• If you deny an applicant and used a credit or background report in your decision, issue an Adverse Action Notice. Always keep these notices professional and consistent.

How Long Does the Rental Application Process Take?

When done efficiently, the average rental application process takes 24-72 hours. Some landlords can approve a new tenant the same day, mainly when documents and references are submitted quickly.

These are the things that can slow down the approval time:

• Missing or slow documentation
• Hard-to-reach references
• Multiple co-applicants
• High application volume
• Manual processes over digital tools

Nearly 45% of renters expect to be approved or denied within 48 hours, so to speed things along:

• Pre-screen tenants with basic questions upfront
• Use an online application and background check system
• Communicate clearly if documents are missing
• Have template messages and a step-by-step checklist
• Stay organized with tools like TurboTenant

Apartment Rental Application Process vs. House Rentals

Is there a difference between applying to rent an apartment versus a house? The fundamental steps (application, screening, approval) are similar, but there can be some differences in expectations and criteria.

Common Mistakes Small Landlords Make

Not Screening at All

Skipping credit, background, or income checks to save time or money is risky, and frankly, not worth it. A tenant may seem friendly but have a history of past evictions or serious debt.

Skipping Reference Checks

Reference calls can reveal what applications and credit reports don’t, like whether a tenant paid rent on time or left damage to the property. Don’t skip this step. A five-minute call to a former landlord is all you need to do to save you from a year (or years) of headaches.

Violating Fair Housing Laws

Even casual comments, such as “I prefer single professionals,” can lead to legal trouble. Always treat applicants equally and avoid questions about protected classes (age, family status, disability, etc.). Stick to written criteria and follow both federal and local laws.

Not Collecting Fees Upfront

If you run screening reports without collecting an application fee first, you risk covering the cost yourself. Plus, application fees can help filter out uncommitted renters. Utilize tools like TurboTenant to enable applicants to pay securely and directly.

3 Tips to Speed Up the Process and Get the Best Tenants

1. Use a Property Management Tool

Property management tools will arguably be the best time savers. You can collect applications, run background checks, and message applicants all in one place. TurboTenant even lets you add pre-screening questions to filter out unqualified tenants before they apply.

2. Pre-Screen Tenants Before Accepting Applications

Save time by asking basic questions upfront, like income, credit score, move-in date, pet status, etc., and add criteria to your listing (like “3x income required”) to encourage self-filtering. That way, you’ll get fewer unqualified applicants and avoid wasting time on bad fits.

3. Automate Steps Like Credit Checks

Don’t wait to handle one step at a time. Start employment verification, background checks, and reference outreach all at once. Many reports are ready within minutes when processed online, so there’s no reason to delay. Automation helps reduce both delays and errors.

Legal Considerations

Fair Housing Act Basics

The Fair Housing Act prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. You can’t ask about these traits or apply different standards to different applicants. Avoid blanket bans on criminal history, and always follow consistent, written screening criteria. Many states also protect additional categories like source of income or sexual orientation.

State-Specific Rules

Some states regulate application fees, requiring itemized receipts, caps on charges, or refunds if no screening occurs. Others require providing copies of credit reports or tenant rights disclosures during the application. Always check your state and local laws to stay compliant.

Holding Application Info Securely

Applications contain sensitive information, such as Social Security Numbers and income. You must keep this data secure and only for as long as necessary.

• If you use paper applications, shred all printed copies once you’re done with them.
• If you’re using online applications, have password-protected systems.
• Additionally, avoid sharing information beyond its original purpose.

Final Thoughts: The Power of a Clear, Consistent Application Process

Treat your rental like a business, and every applicant like a potential business partner. A straightforward and consistent rental application process attracts better tenants, reduces evictions, and leads to smoother rental experiences. Responsible renters expect to be screened since it shows you’re serious and signals reliability, and over time, you’ll see fewer issues and more long-term success.

Tools like TurboTenant can simplify screening, applications, and lease signing, helping you operate efficiently without hiring a manager.

Our last piece of advice: stay selective and stay consistent. By doing so, you’ll protect your investment and your peace of mind for years to come.

Rental Application Process FAQs