Are you looking into ways to screen for Rental Tenants in Arizona? Passive income, generational wealth, equity. These are just a few reasons that many choose to become landlords. While the life of a landlord may seem easy, maintenance, tenant screening, and tenant relationships can be difficult for the most seasoned landlords. 

There are thousands of landlord horror stories. Evictions and property damage can cost you hundreds and thousands of dollars in your property and can be avoided through screening your tenants before renting. 

In order to be a successful landlord, you need to know how to properly legally screen tenants for your rentals in Arizona. 

Why Screen Tenants

Empty rentals cost landlords money. Occupied rentals with non-paying tenants and property damage or eviction processes can cost landlords hundreds and thousands of dollars. In order to avoid problematic tenants or disastrous rental situations, screening tenants can make it easy to find tenants that are a good fit for your property. 

Screening your tenants can help you sort through multiple applications and throw out bad fits, saving you time and money in the long run. However, it is important no matter where you rent, that you follow the legal requirements for your country and state. 

Protections are in place for tenants and landlords for a fair screening process. For example, landlords are allowed to run background checks on tenants but must notify tenants if they are rejected for this in fairness. Whereas tenants cannot be rejected for religious beliefs and are protected from discriminatory practices. 

Federal And State Laws For Landlords

Before you begin your tenant screening process, you must know the legal requirements as a landlord. No matter what state your rental resides in, making sure you are compliant is necessary, or you may find yourself in hot water. 

Federal Fair Housing laws state that it is illegal for landlords to reject tenants based on race, national origin, religion, gender, family status, or disability. If a potential applicant is rejected for any of these reasons, they can file a fair housing complaint.

The Fair Credit Reporting Act (FCRA) is a federal law that deals primarily with “consumer reports,” which include things like credit checks, rental history reports, and background checks, stating an applicant must be notified of what reports will be run and notified if they are rejected for these reasons. 

Arizona law mostly follows the federal requirements with the addition of any fees being put in writing, and if they will be considered refundable. From application to cleaning fees, if a fee or deposit isn’t explicitly designated as nonrefundable, then it is considered refundable. 

These requirements can affect how you screen for tenants and make it more transparent in the application process. You cannot reject a tenant for race, national origin, religion, gender, family status, or disability. You must list any fees or deposits in your application as either refundable or non-refundable, but Arizona does not have a set limit for fees. Additionally, if you reject a tenant based on a credit score you must share that information with the applicant. 

Being knowledgeable of these requirements is important for any landlords to properly and legally screen for tenants in Arizona. 

Legally Screening Tenants

There are many ways that landlords screen for tenants. This can range from in-person interviews, credit checks, and even reference calls. No matter your method for screening tenants, ensure that you can spot potential problems and uphold legal requirements for your state. 

Legal Tenant Checks: 

Credit Scores: You must have written consent to process, and alert the applicant if they are rejected for this reason. 

Employment: You are allowed to ask for employment verification and ask to call employment references. 

Background Checks: You must have signed consent from the applicant for this. 

Security Deposits: Must be in writing and clearly state the amount and if it is refundable. 

Interview Questions For Rentals

If you choose to interview your tenant beforehand it is important that you follow Federal Fair Housing laws, meaning you cannot deny an applicant for the race, national origin, religion, gender, family status, or disability, and when interviewing a tenant should avoid any questions or conversion that involves these topics. 

Interview questions you can ask are: 

• Are you currently renting? If so when does your lease expire?
• Moving date?
• What are you looking for in a new rental, what do you like about your current living place?
• Why are you moving? 
• Have you had any prior evictions?
• What amenities are most important to you?
• What are your expectations for a landlord?

While you screen tenants it’s important to record answers (for future reference) and have a fair comparison of multiple applications. When interviewing tenants it is best to learn more about why they are interested in your rental, and their previous rental history. By having a fair tenant application and interview process it will be easy to identify the best pick for your rental.

Screen For Rental Tenants In Arizona Summary

There are many reasons to become a landlord. Passive income, generational wealth, flexibility, and endless real estate options make renting a smart solution for investors looking to build an income. However, in order to succeed as a landlord, you need to fill your rentals with good tenants. That is why it is important to know how to legally screen for rental tenants in Arizona.

Federal Requirements: Federal Fair Housing laws, and The Fair Credit Reporting Act, protect applicants when they apply for your rental. Under these laws, it is illegal for landlords to reject tenants based on race, national origin, religion, gender, family status, or disability, and if rejected for one of these reasons, they could pursue a fair housing complaint. Additionally, if a tenant is rejected for things like credit checks, rental history reports, and background checks, meaning that if they are rejected for this purpose they must be notified of the reason for rejection. 

Rental Tenants In Arizona Laws

State Laws:  While Arizona does not have many regulations on rentals, it mostly follows the federal rules for housing. The only addition to these requirements is that Arizona law does require landlords to state the purpose of all nonrefundable fees or deposits in writing, or the fee is assumed as refundable. 

Credit and Background Checks: It is in a landlord’s legal protection to perform background checks, employment checks, and even credit checks for potential tenants. These are important to see if tenants have prior evictions, and can afford your rental, so make sure you incorporate these into your credit checks. 

Interview: Most landlords will receive multiple applications for their rentals, and it’s important to make sure potential tenants are a good fit for your rental and your neighbourhood. Make sure everyone will get along well. You can discuss expectations for the rental, explain your rental agreement, and learn more about the potential tenant before they move in. Make sure that your screening interview complies with Fair Housing laws to help you select the best tenant for your rental. 

We hope you found this guide on rental tenants in Arizona helpful. Always follow the law!

About the Author: Catherine Way is the Marketing Manager at Prime Plus Mortgages

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