Finding reliable tenants is critical for protecting your rental property and ensuring steady income. This 12-step checklist helps landlords in Nova Scotia screen tenants effectively while complying with local laws. Here's a quick overview:
- Set Rental Requirements: Define income, credit, and rental history criteria.
- Advertise Your Property: Write clear listings and post on popular platforms like Kijiji or Rentals.ca.
- Pre-Screen Applicants: Use a questionnaire to filter unqualified tenants early.
- Complete Applications: Collect detailed info on income, employment, and references.
- Check Financial Status: Review credit reports and verify income.
- Contact Previous Landlords: Confirm rental history and ask key questions.
- Run Background Checks: Use tenant screening services for criminal and credit checks.
- Meet Applicants: Conduct interviews to assess suitability.
- Follow Rental Laws: Ensure compliance with Fair Housing and Nova Scotia regulations.
- Choose the Best Tenant: Use a scoring system to compare applicants.
- Finalize Lease Agreement: Use Nova Scotia’s Standard Form of Lease (Form P).
- Start the Tenancy: Conduct a property inspection and set communication rules.
This checklist reduces risks like late payments, evictions, and property damage while ensuring a fair and legal tenant selection process.
How to Screen Tenants as a First Time Landlord
1. Set Your Rental Requirements
Establishing clear rental criteria is essential for evaluating tenants fairly and protecting your property. Below, you'll find key qualifications and legal considerations to guide the process.
Required Tenant Qualifications
Focus on financial reliability and a solid rental track record:
Income Requirements
- Rent should account for no more than 35% of the tenant's gross income.
- Request proof of income, such as pay stubs or bank statements.
Credit and Financial History
- Set a minimum acceptable credit score.
- Review payment history, debt-to-income ratio, and any outstanding debts.
Rental Background
- Ensure a clean eviction history.
- Look for positive references from previous landlords.
- Confirm on-time rent payments and no history of lease violations.
These criteria should always align with fair housing regulations to ensure an ethical and legal tenant selection process.
Following Fair Housing Rules
Fair screening practices are especially important, given the 8.7% increase in housing discrimination reports in 2021 [3].
"Process applications in the order you receive them, and apply the same screening criteria to all people in the same situation." - Caretaker.com [2]
Legal Compliance Guidelines
- Develop a written tenant selection plan.
- Share your criteria with all applicants upfront.
- Clearly document your rental requirements to help qualified applicants self-select and to protect against discrimination claims.
- Apply the same standards consistently to every applicant.
Protected Classes
Federal law prohibits discrimination based on:
- Race or color
- Religion
- National origin
- Sex
- Disability
- Familial status
Criminal History Considerations
- Avoid blanket bans on applicants with criminal records.
- Differentiate between arrests and convictions.
- Consider the nature and timing of any offenses.
- Focus on safety-related concerns rather than excluding applicants outright.
If you're in Nova Scotia, note that landlords cannot charge applicants for credit checks or screening costs. Keep detailed records of your screening process to show that all applicants were treated fairly.
2. List Your Property
Writing Your Listing
A well-written rental listing helps attract the right tenants while keeping others away. Focus on providing clear and accurate details that showcase your property's best features and rental terms.
Key elements to include:
- Property details: Square footage, number of bedrooms and bathrooms
- Monthly costs: Rent and security deposit amounts
- Utilities: Who is responsible for them
- Move-in date: When the property is available
- Pet policies: Rules and any extra fees
- Tenant requirements: Minimum qualifications like income or references
- Screening process: A brief overview of how tenants will be evaluated
Tips for Writing a Great Description
Highlight standout features of your property. For instance, instead of saying "nice kitchen", describe it as "Modern kitchen with stainless steel appliances, granite countertops, and custom maple cabinets."
Photography Tips
Good photos make a big difference. Take pictures during the day and cover:
- Each room from multiple angles
- Special features and amenities
- The building's exterior
- Shared spaces like lobbies or lounges
- Parking and storage areas
Once your listing is polished, post it on platforms that will give it the most visibility.
Where to Post Listings
Nova Scotia has several platforms for advertising rentals that cater to different needs and audiences. Here's a quick comparison:
| Platform | Key Features | Best For |
|---|---|---|
| liv.rent | Trust Score screening, AI-generated details | Thorough tenant verification |
| Rentals.ca | Interactive map, advanced search tools | Reaching a broad audience |
| Kijiji | Built-in chat, easy-to-use inbox | Connecting with local renters |
| Zumper | Screening tools, payment processing | Managing everything in one place |
Consider Professional Help
Companies like Kirin Property Management can handle listings for you. They use tools like AI-driven market analysis, professional photography, and tenant screening, and they even manage showings.
Boosting Visibility
Post your listing on multiple platforms to reach more tenants. Be sure to update your vacancy status as soon as the property is rented to avoid unnecessary inquiries.
Stay Compliant with Fair Housing Rules
Follow fair housing laws by using inclusive language and focusing on the property itself, not the type of tenant you’re looking for. Add an "Equal Housing Opportunity" statement and avoid mentioning any characteristics that are legally protected.
3. Pre-Screen Applicants
Pre-screening applicants can save you time and money while helping you stay compliant with housing regulations. By filtering out unqualified candidates early, you can focus on serious prospects before scheduling showings or running full background checks.
Pre-Screening Questions
A standardized questionnaire is a great way to assess potential tenants. According to RentSpree's 2023 data, pre-screening can reduce unqualified applicants by up to 40% [7].
Here are some essential topics to cover:
-
Financial Qualifications
- Monthly household income
- Current employment status
- Consent for credit and background checks
- Ability to pay the first month's rent and security deposit
-
Rental History
- Details of past rentals, including reasons for moving and length of stay
- History of evictions or broken leases
- Contact information for the current landlord
-
Logistics
- Desired move-in date
- Number of occupants
- Pet ownership details
- Parking needs
These questions provide a solid foundation for evaluating tenants. Digital tools, like Google Forms, can make it easier to organize and filter responses automatically [8].
Common Warning Signs
Stay alert for these potential red flags during the pre-screening process:
| Warning Sign | Why It Matters | What to Do |
|---|---|---|
| Refusal to undergo background checks | Could signal past issues | Decline the application |
| Offering their own credit report | May be outdated or altered | Require an official screening |
| Frequent job changes | Could indicate unstable income | Ask for detailed employment history |
| Urgency to move in | Might point to eviction or financial trouble | Contact their current landlord |
| Incomplete information | Suggests lack of transparency | Request missing details |
Compliance Reminder
Keep detailed records of all pre-screening activities. This documentation can help protect you from discrimination claims and ensures you treat all applicants consistently [9].
4. Use a Complete Application Form
A standardized rental application ensures you gather all the necessary details to properly screen tenants [1].
Key Information to Collect
Here's what you should include in your rental application:
| Category | Details to Collect | Why It Matters |
|---|---|---|
| Personal Info | Full legal name, date of birth, Social Security number, phone number, email address | Confirms identity and provides contact information |
| Current Address | Street address, city, state, ZIP code, length of stay | Helps establish rental history |
| Employment Info | Employer name, job title, employment duration, monthly income | Verifies income stability |
| Financial Info | Bank accounts, other income sources, monthly expenses | Evaluates financial responsibility |
| References | Contact details for current and past landlords (last 2 years), personal references | Confirms rental history and character |
| Vehicles | Make, model, license plate number, number of vehicles | Ensures compliance with parking rules |
| Occupants | Names, ages, and relationships of all individuals living in the unit | Confirms compliance with occupancy limits |
When creating your application, be sure to follow Nova Scotia's Residential Tenancies Act. Avoid questions that could violate human rights, and remember, application fees are not allowed in Nova Scotia [11][12]. Collecting this information helps you verify applicants efficiently and make informed decisions.
Permission for Background Checks
Under the Fair Credit Reporting Act, you must get explicit consent before accessing an applicant's credit, criminal, employment, or rental history [10]. Include a clause like this in your application:
By signing this application, I authorize [Landlord Name] to obtain consumer reports related to my credit, criminal background, employment verification, and rental history.
Use secure digital tools to manage applications and keep all data safely stored. This not only protects sensitive information but also keeps the process organized.
5. Check Financial Status
This step focuses on verifying an applicant's financial reliability by reviewing their credit and income details, building on the information provided in their application.
Credit Report Review
A credit check offers insights into an applicant's financial habits. When reviewing credit reports, pay attention to these factors:
| Credit Factor | Criteria | Risk |
|---|---|---|
| Credit Score | Meets or exceeds your set minimum | Low |
| Payment History | Recent late payments or defaults | Medium |
| Existing Debts | High debt levels | Medium |
| Collections | Accounts in collections or derogatory marks | High |
| Public Records | Bankruptcies, tax liens, or evictions | High |
Tools like TransUnion's Resident Score, which focuses on payment history, can be helpful for assessing reliability. Recent financial trends should also be considered to get a complete picture of the applicant’s financial situation [14]. Along with credit details, verifying income provides a clearer understanding of their financial capacity.
Income Verification
To confirm income, review documents such as pay stubs, W-2 forms, recent tax returns, bank statements, or statements for applicable benefits [13].
Debt vs Income Check
Evaluate the rent-to-income ratio to ensure the applicant can afford the rent. TransUnion research suggests that enforcing a strict 3:1 income-to-rent ratio could exclude up to 18% of otherwise suitable applicants [15].
| Income Allocation | Recommended Range | Notes |
|---|---|---|
| Rent Payment | Up to 30% of gross income | Keeps rent within affordable limits |
| Total Housing Costs | Up to 50% in metro areas | Includes utilities and fees |
| Remaining Income | At least 50% | Covers other essential expenses |
To mitigate risks, consider options like requesting a larger security deposit, requiring a co-signer for the lease, or spreading pet fees into monthly payments rather than a single upfront charge [15].
6. Contact Previous Landlords
Once you've narrowed down your list of potential tenants through pre-screening and application reviews, the next step is to confirm their rental history by reaching out to their previous landlords.
Speaking with past landlords can give you a clearer picture of a tenant's reliability and highlight any potential concerns.
Questions for Past Landlords
When contacting previous landlords, it's helpful to use a clear set of questions to guide the conversation.
| Topic | Key Questions | What to Look For |
|---|---|---|
| Payment History | • Did the tenant pay rent on time? • What was the monthly rent amount? |
Consistent payments and valid reasons for any delays |
| Property Care | • How well did the tenant maintain the property? • Were there any damages? |
Signs of responsibility and care for the property |
| Lease Compliance | • Did the tenant follow the lease terms? • Were there any complaints about noise or other issues? |
Evidence of rule compliance and being a good neighbor |
| Communication | • How responsive was the tenant? • Did they provide proper notice before moving out? |
Professionalism and reliability in interactions |
Verify Rental History
To confirm the accuracy of references, take these extra steps:
- Check ownership records: Use county property records and S-B-L numbers to verify that the landlord owns the property [17].
- Confirm landlord details: Cross-check contact information through property records, directories, or landlord associations.
Red Flags to Watch For
Be cautious if you encounter any of the following:
- Vague or unclear answers about the tenant
- Inability to provide property details
- Overly glowing recommendations that seem exaggerated
- Contact information that doesn’t match property records
- Hesitation or refusal to share feedback
Keep a record of all your communication attempts and responses [16]. This step helps ensure your tenant screening process stays thorough and consistent.
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7. Run Background Checks
Once you've verified rental history, it's time to run background checks to protect your property. This step adds an extra layer of security to your tenant screening process.
Screening Services
Tenant screening services provide detailed reports to help you make informed decisions. For example, SingleKey in Nova Scotia offers tenant screening reports starting at $29.99 [19]. These reports typically include:
| Report Component | What It Reveals | Why It Matters |
|---|---|---|
| Credit Check | Payment history from Equifax/TransUnion | Shows financial responsibility |
| Criminal Records | Past convictions and pending cases | Flags potential safety risks |
| Employment Verification | Income and job stability | Confirms ability to pay rent |
| Identity Verification | Government ID validation | Helps prevent fraud |
Kirin Property Management includes screening services in its Premium plan for properties with fewer than three units. Their package features AI-driven analysis and credit checks, offered at an 11% fee. Once you have the screening report, you can move on to reviewing legal records for further details.
Legal Record Search
Checking legal records can reveal additional concerns. Here's how to approach it:
- Search provincial and federal databases for serious offenses.
- Look through court records for any civil cases.
- Verify sex offender registry status, if legally allowed.
Legal Compliance Tips:
- Always get written consent before running background checks [18].
- If an applicant is rejected, provide them with a copy of their screening report [4].
- Keep records of all screening decisions to ensure compliance with fair housing practices [20].
Cost Breakdown for Background Checks
Here’s what you can expect to pay for various checks:
- Criminal background check: $15–$40
- Comprehensive credit report: $25–$50
- Eviction history search: $5–$20
- Full screening package: $35–$75 [4]
8. Meet Applicants In Person
Once financial and background checks are complete, meeting applicants face-to-face is an essential step to evaluate their suitability as tenants. These meetings help you gauge reliability and compatibility. As Baselane suggests, "Ask tenant screening questions to assess income, employment, rental history, and lifestyle" [21].
Interview Questions
When interviewing potential tenants, focus on rental-related questions while staying compliant with fair housing laws. Here are some key topics to cover:
| Topic | Key Questions | What to Listen For |
|---|---|---|
| Move-in Plans | When can you move in? How long do you plan to stay? | Whether their timeline matches your lease terms |
| Property Use | Will you work from home? Any regular visitors? | Compatibility with property rules |
| Maintenance | How do you handle repairs? When do you notify landlords? | Responsibility and communication style |
| Financial | Is the deposit and first month's rent ready? | Financial readiness |
Important Reminders:
- Keep a record of all responses for comparison and legal purposes [6].
- Stick strictly to rental-related topics. Avoid personal questions about family, marriage, or similar matters [24].
Beyond verbal answers, nonverbal cues can reveal additional insights.
Assessing Nonverbal Cues
Nonverbal communication often says more than words. During interviews, pay attention to these behaviors:
Positive Indicators:
- Steady eye contact, showing attentiveness and engagement.
- Relaxed, open posture with shoulders down.
- Leaning slightly forward during key parts of the conversation.
- Natural hand gestures while speaking.
Potential Concerns:
- Excessive fidgeting or visible nervousness.
- Avoiding eye contact, especially during financial discussions.
- Crossed arms when asked about rental history.
- Shifts in tone or inconsistencies when discussing past landlords.
"Nonverbal language can account for more than 90% of our entire message when conveying our thoughts and feelings regarding anything" [22].
Professional Tips:
- Be mindful of cultural differences that might influence communication styles [23].
- Look for patterns in nonverbal cues rather than focusing on isolated gestures [23].
- Create a welcoming atmosphere to encourage honest and open communication.
9. Follow Rental Laws
Make sure you understand and comply with federal Fair Housing laws while keeping detailed records to avoid potential disputes. For landlords in Nova Scotia, tenant screening involves adhering to specific regulations.
Fair Housing Guidelines
Federal Fair Housing laws protect against discrimination during the tenant screening process. Here's what you need to know:
| Protected Class | Prohibited Actions |
|---|---|
| Race & Color | Steering applicants toward certain neighborhoods |
| Religion | Asking about religious practices |
| National Origin | Demanding proof of citizenship |
| Sex & Gender | Favoring one gender over another |
| Disability | Denying reasonable accommodations |
| Familial Status | Refusing families with children |
To stay compliant, use consistent and objective criteria when screening tenants:
- Develop written tenant selection policies based on clear, measurable criteria.
- Focus on factors like rental history, income, and credit reports.
- Always get written consent before running credit checks.
- If you deny an applicant, provide an adverse action notice explaining the decision.
Keeping these practices in place ensures fairness and helps you avoid legal issues.
Record Keeping
Detailed documentation is your best defense against disputes and demonstrates compliance with the law. For digital records, plan to retain them for at least seven years.
Key Records to Keep:
- Application Materials: Save all applications, including those you reject, with clear notes on why they were denied.
- Screening Documentation: Keep background check authorizations, credit reports, and any interview notes securely stored.
- Communication Records: Log reference checks, email correspondence, and all decisions related to tenant screening.
Tips for Managing Records:
- Use secure, approved cloud storage systems.
- Review and organize files annually.
- Shred sensitive documents that are no longer needed.
- Keep accepted and rejected applications in separate folders.
- Document every decision with objective reasoning to back it up.
10. Choose Your Tenant
Once you've completed the screening process, it's time to pick the best applicant based on the data you've gathered.
Compare Applications
Use a clear scoring system to evaluate each candidate. Focus on these important factors:
| Criteria | Minimum Requirements | Weight |
|---|---|---|
| Income | 3x monthly rent | 30% |
| Credit Score | 650+ | 25% |
| Rental History | 2+ years, no evictions | 20% |
| Employment | 1+ year in current job | 15% |
| References | 2 positive landlord references | 10% |
For multiple qualified applicants, consider these additional aspects:
- Payment History: Check for a track record of on-time rent payments with previous landlords.
- Income Stability: Look at job consistency and reliable income sources.
- Property Care: Review references to see how well they maintained past rentals.
- Communication Style: Note their responsiveness during the application process.
If you'd like to automate this step, TenantCloud offers screening services starting at $19.95 for basic background checks through Checkr [5]. For more detailed reports, RentPrep's Platinum package at $34.95 provides deeper insights to guide your choice [5].
Once you've scored and compared all candidates, it's time to notify them.
Notify Applicants
Reach out to all applicants promptly with your decision.
For Accepted Applicants:
- Send an acceptance email or letter within 24 hours.
- Outline the next steps, such as signing the lease and scheduling the move-in date.
- Include details about deposits and payment deadlines.
For Rejected Applicants:
- Provide a short, factual rejection notice.
- Mention the specific criteria they didn't meet.
- Include any legally required adverse action notices, if applicable.
This ensures clear communication and keeps the process professional for everyone involved.
11. Complete Lease Agreement
Review Lease Terms
In Nova Scotia, landlords are required to use the Standard Form of Lease (Form P) to comply with the law. This form serves as the base for any rental agreement, whether written, verbal, or in another format [25].
| Required Lease Components | Details to Include |
|---|---|
| Tenant Information | Full names, contact details, emergency contacts |
| Property Details | Unit address, included appliances, utilities |
| Lease Terms | Start/end dates, rent amount, payment schedule |
| Security Deposit | Amount (within legal limits), payment terms |
| Tenant Responsibilities | Maintenance, repairs, property rules |
| Landlord Obligations | Service provisions, maintenance commitments |
Make sure to attach these documents to Form P:
- Rules for the property
- Rental Unit Condition Report
- Any extra terms agreed upon, as long as they align with the Residential Tenancies Act
You’re also required to give tenants a signed copy of the lease within 10 days of signing [26]. Once the lease terms are finalized, you can move on to collecting initial payments.
Process First Payments
To confirm the lease, collect the initial payments promptly.
Payment Methods
ACH transfers are often the most cost-effective option, with fees ranging from $0.26 to $0.50 per transaction [28]. This method offers several advantages:
- Direct deposits into your account
- The ability to schedule automatic payments
- Clear transaction records
- Lower fees compared to credit card payments
Handling the Security Deposit
- Collect the deposit before handing over the keys.
- Provide a receipt for the deposit.
- Keep detailed records of the payment.
- Ensure the deposit amount complies with Nova Scotia’s regulations.
"Collecting rent can be a difficult, manual process. Even online rent payment platforms have downsides like high fees. This article will guide you to the best option to fit your rent collection needs." – Nick Rudy [28]
Payment Process Tips
- Don’t require advance rent payments [27].
- Record every transaction carefully.
- Set up recurring payments whenever possible.
- Use modern payment platforms for easier tracking.
- Keep separate records for rent payments and security deposits.
Documenting these initial transactions ensures clarity for both parties and creates a smooth start to the tenancy.
12. Start the Tenancy
Property Inspection
Before the tenant moves in, it's crucial to document the property's condition thoroughly. Here's what to focus on:
| Inspection Area | Key Items to Check |
|---|---|
| Interior | Walls, floors, fixtures, appliances, windows |
| Systems | HVAC, plumbing, electrical outlets |
| Safety | Smoke detectors, locks, emergency exits |
| Exterior | Drainage, foundation, roof condition |
What to Do:
- Take high-resolution photos with timestamps for accuracy.
- Record a video walkthrough with narration to point out details.
- List any existing damage or wear in writing.
- Ensure both landlord and tenant sign and date the inspection forms.
Pre-Move-In Checklist:
- Schedule the inspection with the tenant present.
- Inspect each room while it's still empty.
- Fix any maintenance issues before the tenant moves in.
- Provide the tenant with a signed copy of the inspection report.
- Keep detailed records for your files.
Once you've documented the property, turn your attention to setting up effective communication.
Set Communication Rules
Clear communication from the start can prevent misunderstandings later. Charles Thompson, CEO of Specialized Property Management, puts it best:
"Setting clear expectations and demonstrating mutual respect from the outset are the essential keys to a long-lasting, professional relationship where everyone comes out ahead." [29]
Suggested Communication Framework:
| Priority Level | Method | Expected Response Time |
|---|---|---|
| Emergency | Phone call | Immediate |
| Urgent | Text message | Within 4 hours |
| Routine | Email/portal | Within 24 hours |
Best Practices:
- Provide a tenant manual that answers common questions.
- Use an online portal for payments and maintenance requests.
- Clarify preferred contact methods for different issues.
- Clearly define what counts as an emergency versus a routine matter.
- Plan regular property check-ins to maintain open communication.
Summary
This checklist is designed to help you run a secure and profitable rental operation by protecting your investment and ensuring steady income. A solid tenant screening process is key to reducing risks and avoiding delays.
Here’s how this checklist can help:
| Benefit | How It Helps |
|---|---|
| Financial Protection | Lowers the risk of lost rental income and damages |
| Legal Compliance | Reduces discrimination claims with standardized processes |
| Time Savings | Avoids costly evictions and high tenant turnover |
| Property Value | Keeps your property in good condition with responsible renters |
"Choosing tenants who will take care of your property and pay rent on time can be easier said than done. Tenant screening is a complex process filled with the burden of what can happen if you choose incorrectly." [1]
For a streamlined approach, consider partnering with a property management company. For example, Kirin Property Management provides thorough screening services, including:
- AI-powered Comparative Market Analysis for ideal rental pricing
- Advanced software for security checks
- Credit bureau reporting
- Listings on 20+ platforms
- Income and reference verification
Their Core Management package starts at 9% and includes tenant placement, while the Premium package, at 11%, offers added features for managed properties [30]. Both packages include detailed tenant screening to help maintain stable rental income and safeguard your property.
Keeping detailed records during the screening process is critical for legal protection. By using this checklist and professional services when needed, you can lower risks and create a secure, profitable rental business.
