There was a time when you did not have to know a lot of things to stay out of trouble in the rental business.  You could just pick any tenant you wanted to without fear of being assailed by the government.  Those were days when a handshake was your work of honor, when people did what they said they would do, when bad tenants were not protected by your government.  But times have changed. The real estate industry is one of the most regulated in the country today.  Housing has become the big issue for all manner of politicians and bureaucrats.  They are constantly trying to take away the rights of property owners to make a fair profit and to use their property as they see fit. One bad tenant will cost you at least three months rent and untold grief.  The most important thing a landlord can do is to select good tenants.

Good tenants make your mortgage payments.  Good tenants turn you a profit. Good tenants maintain the property where they live and increase the value of your investment. Many time landlords are in too much of a hurry and they rent their property to the first warm body who comes along with cash in hand.  They live to regret that decision.  A careful tenant screening process will pay far more dividends than will losing a couple of weeks rent.

NOTE FROM CROSSETT REAL ESTATE SERVICES

You must be consistent in your screening policies:
EXAMPLE:
An application process should determine the prospects affordability, past rental history, source of all monthly income, copy of ID for all applicants 18 years and older: names and relationships of all persons living in the unit, who is responsible for payment and care of the unit, etc.