Approving the right resident is one of the most important decisions you make as an owner. It impacts rent performance, maintenance costs, community culture, and legal risk. At TGN Property Management, we use a transparent, criteria-based process designed to be fair, consistent, and compliant with federal, California, and Los Angeles rules.
Throughout this guide, our Los Angeles Property Management Company recommends practical steps you can adopt today. Note: This is general information, not legal advice.
Guiding Principles We Follow
- Fair Housing first: No discrimination based on protected classes; apply the same written criteria to every applicant.
- Consistency and documentation: Publish criteria, follow them uniformly, and document decisions.
- Local compliance: Align with California law and City of Los Angeles requirements, which can be stricter than state rules.
- Privacy and security: Handle applicant data under FCRA and California privacy rules.
Our Los Angeles Property Management Company recommends building your screening policy once, training your team on it, and auditing it quarterly.
The Core Criteria We Use
- Identity and application completeness
- Government-issued ID and verification of identity.
- Complete, truthful application with all required disclosures and signatures.
- Mismatches or material misstatements can be grounds for denial.
Our Los Angeles Property Management Company recommends using e-sign plus timestamped acknowledgments for an auditable trail.
- Income and ability to pay
- Income multiple: Typically 2.5x–3x the monthly rent.
- Voucher holders and subsidies: Evaluate based on the tenant’s share, not the full contract rent (source-of-income is a protected class in CA).
- Verification: Recent paystubs, W-2/1099, offer letters, or bank statements for self-employed.
- Stability: Employment tenure or reliable recurring income.
If an applicant is just shy of the target, our Los Angeles Property Management Company recommends documented compensating factors (e.g., larger savings, verified subsidy) applied consistently.
- Credit profile and obligations
- Credit score range and history are evaluated alongside:
- Payment behavior (on-time vs. chronic late)
- Debt-to-income and high revolving utilization
- Housing-related tradelines (prior rent, utilities)
- We consider thin-file applicants using alternative data (banking activity, verifiable savings).
When credit risk is elevated, our Los Angeles Property Management Company recommends lawful alternatives such as a qualified guarantor—keeping in mind California’s security deposit caps.
- Rental history and landlord references
- Positive landlord reference: On-time rent, lease compliance, property care, and proper notice to vacate.
- Documented issues: Unresolved damages, repeated lease violations, unauthorized occupants/pets.
- Verification: Contact prior landlords and cross-check ownership on public records to avoid fake references.
- Eviction and court history
- We review eviction judgments where allowed and consider context and dates.
- Be cautious with pandemic-era rent debt or filings; some periods in Los Angeles were protected, and using that data may raise compliance concerns.
Our Los Angeles Property Management Company recommends focusing on verified outcomes (judgments, payment plans completed) rather than mere filings.
- Criminal background screening (with local compliance)
- Follow all federal guidance and any local “fair chance” rules. Some jurisdictions, including the City of Los Angeles, have adopted “fair chance” protections that restrict if, when, and how criminal history can be considered.
- Avoid blanket bans. If allowed, use an individualized assessment tied to legitimate safety or property interests, and provide required notices and a dispute process.
When in doubt, our Los Angeles Property Management Company recommends checking current LAHD guidance before running or using criminal reports.
- Occupancy standards and household composition
- Reasonable standard such as two persons per bedroom plus one (subject to local codes and unit size).
- Consider bedroom count, square footage, and safety egress. Apply the same rule uniformly.
- Pets, assistance animals, and deposits
- Pets: Follow published pet policy (allowed breeds/weights, pet rent, pet deposit within legal caps).
- Assistance animals: Not pets. Process requests as reasonable accommodations; follow HUD rules on documentation and never charge pet rent/deposits.
Our Los Angeles Property Management Company recommends separate workflows for pets vs. assistance animals to avoid Fair Housing mistakes.
- Co-signers/guarantors
- Allow a qualified guarantor when criteria are close but not met.
- Set clear standards: stronger income multiple (e.g., 5x monthly rent), solid credit, and residency in the same state for enforceability.
- Guarantor agreement should be joint and several, reviewed and e-signed.
- Reusable screening reports and fees
- California allows Reusable Tenant Screening Reports (RTSRs); acceptance is optional. If you accept them, outline the rules in your criteria and ensure they’re current.
- Keep application fees reasonable and tied to actual screening costs. Provide itemized receipts upon request.
Our Los Angeles Property Management Company recommends posting your fee policy and RTSR stance on every listing for transparency.
How We Make the Final Decision
- Scorecard approach: Each category (income, credit, rental history, etc.) is scored against published thresholds.
- Compensating factors: Strong savings, long employment, or excellent references can offset marginal credit, applied consistently to avoid bias.
- Adverse action compliance: If we deny, require a guarantor, or adjust terms due to screening data, we send a compliant FCRA adverse action notice with reasons and bureau contact details.
- Documentation: We store application materials, communications, and decision notes securely for the required retention period.
Our Los Angeles Property Management Company recommends a two-person review on edge cases to improve consistency and reduce disputes.
California and Los Angeles Nuances To Remember
- Security deposit caps (AB 12): For most landlords in California, deposits are generally limited to one month’s rent. Plan guarantor options accordingly.
- AB 1482 context: Not a screening rule but relevant for rent caps and just cause—know your property’s status before making promises about future rent.
- Source of income: Must accept lawful income, including housing vouchers; evaluate affordability using the tenant’s portion only.
- Local notices and fair chance rules: Los Angeles may require specific disclosures and limits related to background checks and adverse actions.
- Privacy (CCPA/CPRA): Inform applicants how their data is used, stored, and deleted.
When laws change, our Los Angeles Property Management Company recommends updating your criteria, lease package, and staff training immediately.
Mistakes That Lead To Disputes (And How To Avoid Them)
- Vague or shifting criteria: Leads to fair housing risk. Publish your standards and stick to them.
- Blanket criminal bans: High legal risk in many jurisdictions. Use individualized assessments if permitted.
- Ignoring vouchers: Treating subsidies differently is unlawful in California.
- Excessive deposits: Violates AB 12. Consider guarantors or smaller unit offers instead.
- Inconsistent reference checks: Call every prior landlord or none—be consistent.
- Poor documentation: If it’s not in writing, it didn’t happen. Use e-sign and time-stamps.
Our Los Angeles Property Management Company recommends a monthly QA audit of five random application files to ensure your process matches your policy.
What We Tell Applicants Up Front
- Exact income multiple, acceptable documents, pet policy, and occupancy standard.
- Prohibited behaviors (misrepresentation, forged docs) result in denial.
- How long screening takes and how we communicate decisions.
- Their rights: to dispute report accuracy, to submit accommodation requests, and to know how their data is used.
Clear expectations reduce complaints and speed up leasing. Our Los Angeles Property Management Company recommends posting a one-page “How We Screen” explainer linked in every listing.
Partner With TGN Property Management
A great tenant screening program is objective, humane, and legally current. TGN Property Management applies this criteria-driven approach across our Los Angeles portfolio to protect NOI and community standards while respecting applicants’ rights. If you’d like a policy refresh, template library, or training for your leasing team, our Los Angeles Property Management Company recommends starting with a quick audit of your current criteria and adverse-action workflow.Ready to approve better residents with less risk? TGN Property Management can help you implement a compliant, consistent screening system tailored to Los Angeles rentals.