Key Takeaways

Without tenant screening, property owners face the risk of devastating financial losses due to unpaid rent and expensive evictions. It can lead to costly repairs from property destruction.
Tenants that you’ve failed to screen risk paying their rent late or not at all. This kind of behavior derails your cash flow and jeopardizes the stability of your rental income.
Eviction rates and legal headaches increase exponentially if landlords skip this essential step. This single mistake results in thousands of dollars in unnecessary legal fees and unneeded stress.
Bad tenants not only affect the safety of the neighborhood, but they also negatively impact surrounding property values. They can further ruin your rental property’s reputation within the local San Francisco community.
Neglecting to follow state and federal tenant screening laws exposes you to lawsuits and discrimination claims. This puts your entire business at risk!
Proper tenant screening—background checks, rental reference checks, and an established set of qualification criteria—ensures quality renters apply and prevents costly mistakes to your investment.

Here’s what happens if you skip rental property tenant screening. It puts every landlord at risk. In turn, they can be subjected to missed rent payments, property damage, and extended eviction processes.

Comprehensive tenant screening, including credit, rental history, and background checks, allows you to identify any potential red flags before a lease is signed. In San Francisco, the balance of rental laws weighs heavily in favor of tenants. Tenant eviction costs can be in the thousands, translating into months of lost rent and additional legal expenses.

Without screening, landlords are at risk of incurring code violations, excessive noise complaints, and issues with neighbors. If you do careless leasing, you are going to lower your property value and damage your long-term returns.

For private landlords looking for reliable tenants and less landlord hassle, tenant screening is a vital step in successful renting. Read on for more about why this step is significant, particularly in SF.

What Happens When You Skip Tenant Screening in San Francisco?

Skipping tenant screening may feel like a time-saving measure during the rental process. It’s a decision that entails significant legal and financial liability for property owners. Tenant background checks aren’t just a best practice; skipping them poses several risks to property owners.

These issues are hard to contain and can easily escalate. The impacts go far beyond the inconvenience of repairing a dripping sink or pursuing delinquent bills. It usually involves working with individuals with a history of non-payment, property damage, and/or criminal activity. We’re going to lay out the hazards at stake for landlords. It’s important to know what is at stake when they choose not to screen tenants.

1. Facing Serious Financial Setbacks

Landlords who forego tenant screening are much more likely to end up with unpaid rent. A tenant who seems perfect on paper but has a prior history of not paying the rent can lead to months of lost revenue. For an average mom-and-pop landlord in San Francisco, one late rent payment might set off a domino effect.

Mortgage payments are put off, their maintenance budgets are cut, and they’re under extraordinary duress. The financial losses continue beyond the lack of rental payments. Should an eviction prove unavoidable, costs in California can skyrocket into the four-figure range and beyond within weeks.

Courts impose filing fees, process servers must be compensated, and due to the complexity of tenant eviction laws in California landlords must retain counsel. These costs erode the profit margin and may even jeopardize a small-scale rental business from going under.

2. Dealing With Property Damage Nightmares

Tenants who should have been screened won’t respect your property. Property damage isn’t just a few scrapes on the walls or a broken blind. There are property landlords’ tales of terrifying things found after unscreened tenants vacated apartments.

They uncovered demolished appliances, splintered doors, and even impacts to the foundation! As you can see, repairs can get expensive fast! They vary from hundreds to thousands of dollars, based on the level of deterioration.

In some cases, restoring a property to a rentable state can be more expensive than several times the deposit amount. This pressure leaves landlords to foot the bill themselves. In hotter urban markets such as SF, longer delays mean a unit is off the market longer. This reality means lost rental income during peak demand seasons.

3. Inviting Unreliable Rent Payments

Avoiding tenant screening is directly linked to issues with rent payment. Dependable tenants usually have a proven history of paying rent on time, and without proper screening, landlords have no way to verify this crucial information.

Missed or late payments create a cash flow burden, which can complicate maintaining other monthly expenses. If a landlord relies on that rent as their sole source of income, this can lead to volatility. Repeated delays can deeply impact the landlord’s capacity to pay mortgage payments, property taxes, insurance, or invest in essential repairs.

This decline deepens the property’s loss of value.

4. Increasing Your Eviction Headaches

Landlords increase evictions when they avoid screening tenants. Eviction is never as fast or easy as it seems. In California, the average process takes about seven months.

It frequently comes at the cost of several court appearances, months of lost rent, and attorney fees. Each eviction process is a new emotional toll, not to mention the time required to handle an eviction versus other aspects of running a rental business.

If you’re a landlord, a high frequency of evictions in your area will become a headache. Not only do properties with high turnover become harder to keep filled with quality tenants in the future.

5. Compromising Neighborhood Safety and Reputation

Problem tenants rarely only affect the inside of a building—they can threaten the safety and social fabric of the entire neighborhood. Residents’ complaints about excessive noise, disruptive behavior, or criminal activity can lead to scrutiny from both neighboring residents and cities.

This harms not just the property’s reputation but its value by extension. In communities where connections run deep, harmful decisions that affect tenants can jeopardize relationships. These problems may even result in a city code violation or attract the attention of a neighborhood watch.

Homes with consistent complaints over time become increasingly difficult to rent out while driving away quality tenants.

6. Navigating Potential Legal Minefields

Not screening tenants can result in the violation of key non-discrimination laws such as the Fair Housing Act. Passed in 1964, this federal law prohibits discrimination based on race, color, national origin, disability, and other protected classes.

Failing to screen is a fast track to discrimination claims, particularly if rental decisions come across as capricious or prejudiced. In fact, in many instances, landlords have been successfully sued based on discriminatory practices or for not adhering to appropriate protocols.

Fines and legal settlements can easily exceed savings accrued from avoiding screening. Ensuring compliance with ever-changing local and federal laws is an ongoing challenge for all landlords. It’s more than a best practice—it’s the key to getting—and keeping—funding for the long haul!

In San Francisco, landlords must also comply with local just cause eviction laws and screening fee caps, which are more restrictive than state regulations. Failing to follow these guidelines can increase legal exposure even further.

7. Suffering Higher Vacancy and Turnover Costs

Poor tenant selection is a leading cause of skyrocketing vacancy and turnover costs. When tenants break their lease early or face eviction, properties sit empty, racking up lost income month after month. On top of that, landlords are left with the expenses of advertising, cleaning, and repairs, turning what should be a steady income stream into a costly headache.

High turnover leads to lost time in finding new tenants, as well as the time involved with frequent make readies to get the property ready for rent, move-in and move-out logistics. In tight rental markets, a higher turnover not only costs money but may cause a property to lose out on dependable, long-term tenants.

This damaging cycle of vacancy and re-renting can severely erode profits and create a constant nuisance for landlords.

What Smart Tenant Screening Uncovers

Smart tenant screening operates on a foolproof, step-by-step plan that uncovers the crucial details every landlord needs to know before handing over the keys. This is far, far beyond the gut feeling or a five-minute interview.

Done right, screening is the main process to spot red flags, check if someone can pay the rent, and see if they’ll treat a rental home with care and respect.

Verifying Financial Stability and History

Smart tenant screening first aims to determine whether the applicant has the ability to pay rent. That includes verifying their income, employment history, and reviewing their credit.

Understanding their debt-to-income ratio provides a clearer picture of how pinched their finances are. In the U.S., debt is normal, but too much of it, paired with the risk of a job loss or illness, makes rent payments risky.

A complete screening can help determine if a prospective tenant has a history of late payments or is simply attempting to living beyond their means. For younger renters, such as many Millennials or Gen Z, a lack of credit history can lead to difficulties.

Having evidence of consistent income or savings goes a long way in bridging the void.

Reviewing Past Rental Behavior

After all, past behavior is usually the best predictor of future behavior. By calling previous landlords or checking references, landlords can learn if the applicant paid on time, followed rules, or caused issues like noise or damage.

A recurring history of nonpayment or eviction disputes with other tenants indicates potential liability. Providing references that demonstrate a consistent history of treating any space as a home shows maturity and ensures a mutually beneficial fit between the tenant and property.

Checking Relevant Criminal Records

A comprehensive, smart screening process should always entail a complete criminal background check but only if it is allowed based on local laws. This helps to reveal any prior convictions or current charges that might be indicative of future behavior.

It demonstrates concern for the safety of the property and the surrounding community. Reports trawl through millions of records, and they help identify dangers to neighbors, their kids in case of sexual predators and potential harms to property values.

Confirming Applicant Honesty

It’s critical to ensure that all information provided by an applicant aligns with what third-party sources report. Verifying applicant information preventing misrepresentation or fraud by cross-referencing data, allows you to identify discrepancies in employment, income, and rental history claims.

Confirming applicant honesty ultimately creates a sense of trust and filters out any possible dishonest applicants.

Legal Guardrails: Screening Within the Law

Rental property owners in the U.S. are required to adhere to specific legal guardrails when screening tenants. These consistent rules go a long way toward making sure that every applicant receives a fair chance. They protect landlords from massive penalties or litigation. Knowing the fundamentals of federal, state, and local screening laws is critical for anyone who owns or operates rental properties.

Whether you manage a single-family home in the suburbs or an apartment complex downtown, understanding this laws is key.

Understanding Fair Housing Rules

At the heart of tenant screening law sits the Fair Housing Act. This law bans discrimination based on race, color, age, religion, national origin, sex, familial status, disability, sexual orientation, gender identity, marital status or any local laws protecting specific classes. For example, landlords can’t turn someone away just because of their family status or where they come from.

While the Act doesn’t treat criminal history as a protected class, landlords need to be careful. Blanket bans on applicants with a criminal record could result in a disparate impact claim if they end up affecting one group more than others. Equal treatment is not just best practice—it’s required.

Taking time to review the Act helps landlords keep their process unbiased and avoid accidental violations.

Avoiding Discriminatory Screening Practices

Screening policies should not introduce discrimination. This includes no disparate treatment based on any of the protected classes. Conducting Fair Housing Training is essential and required by law.

All staff involved in leasing must receive fair housing training. This prevents errors and decreases the likelihood of discriminatory screening-related litigation. As an example, electing to use eviction reports comes with caution.

These reports may have mistakes or omissions. Denying applicants just for having an eviction would be discriminatory if it had a disparate impact on one protected class compared to another.

State and Local Screening Regulations

States and cities frequently enact local and state regulations that go beyond the minimum federal requirements, making the rules stricter. California, for instance, has fair housing laws. It has unique rules regarding what can be screened for in a tenant background check.

Screening requirements can vary widely from municipality to municipality. Landlords need to closely examine local laws and take steps to ensure their practices are in line with the new normal.

One error—even one as simple as not reporting the day a payment’s due—can lead to huge penalties or criminal prosecution.

Debunking Common Screening Myths

These tenant screening myths linger, creating a hard environment for landlords to make informed decisions. Inaccurate information can cause harm, financial loss, or even criminal prosecution. Understanding these myths versus realities puts landlords on much better ground and allows them to better comply with fair housing laws.

Here are some of the biggest myths surrounding tenant screening and what happens during the process.

Myth: Gut Feelings Are Reliable

Some landlords think their intuition is enough to spot a solid tenant. Gut feeling” can overlook red flags and lead to bias. For example, it’s easy to miss a history of late payments or past evictions if you only trust first impressions.

In San Francisco, where rental markets are diverse, sticking to facts and data keeps things fair and helps avoid costly mistakes. Data-driven checks—like looking at rental history, credit, and references—work better and follow the Fair Housing Act, which bans screening based on any protected class.

Myth: A High Credit Score Is Everything

Credit scores are important, but they are only part of the equation. Many prospective young renters, such as Millennials or Gen Z, are too young and/or lack credit histories. To dismiss them based solely on their score can shut out otherwise great tenants.

A better screening policy considers employment history, landlord references, and criminal records. This holistic process minimizes screening bias and discrimination while consistently delivering dependable tenants.

Myth: Screening Takes Too Much Time

Others believe that screening is a bottleneck. While it is true that a thorough screening with reference checks and employment verification can take several days, utilizing online tools and AI services, background and credit checks can be done relatively quickly. Not going through these steps to save time could lead to more significant issues down the road, such as evictions or damage to property.

Overall, the upfront effort will be well worth it in time and money saved not to mention alleviating the associated stress that is tied to an eviction.

Myth: Applicants Pay All Screening Costs

In California, the maximum screening cost for applicants is defined by law and doesn’t cover more than simple credit and or rental history checks.

The legislators burdens the landlords with labor cost to qualify good renters. In most SF neighborhoods with high demand, this increases the pool of applications SF receives from qualified prospective tenants.

If screening fees are beyond the required amount by law, landlords may get sued for the excessive cost. Fair and transparent fee structures that are shared with the applicants are required in the same way as sharing a copy of the credit report in a timely manner.

The Real Costs of Cutting Corners

Tenant screening undercuts more than just a few headaches. Not performing tenant screening could lead to serious repercussions. The price tag is very real. It adds up quickly for even the small-time landlord, and in expensive rental markets like San Francisco, where a routine kitchen remodel can be $60,000, it potentially can eat up the entire rental income that was received by the tenants during their tenancy.

When landlords skip background checks and rush to fill vacancies, the fallout can hurt their wallets and peace of mind.

Eviction Expenses: More Than You Think

Eviction isn't just an inconvenience—it comes with a hefty price tag. In 2025, the average cost of evicting a tenant in the United States can range from $2,500 to $12,988, depending on various factors such as location, legal fees, and lost rent.

Here's a breakdown of typical eviction-related expenses:

Lost Rent: If the eviction process takes 6 to 9 months, landlords may lose between $24,000 and $36,000 in unpaid rent.
Legal Fees: Attorney fees can range from $500 to $2,000, depending on the complexity of the case.
Court and Filing Fees: These can vary from $50 to $500, depending on the jurisdiction.
Law Enforcement Costs: Serving eviction notices can cost between $500 and $2,000.
Cleaning and Repair Costs: After eviction, landlords often spend $600 to $5,000 on cleaning and repairs.
Marketing Fees: Advertising the vacant property can cost around $500.
Lock Replacement: Changing locks typically costs about $250.

In total, these expenses can accumulate well beyond $50,000, including unpaid rent. Moreover, landlords often recover only a small percentage of the back rent owed, making eviction a costly and stressful process.

Repair Bills from Negligent Tenants

Unscreened and neglectful tenants can inflict damage far beyond the typical wear and tear. The costs of repairs and restoration can start at around $2,500, but they can quickly escalate into the tens of thousands of dollars. This is especially true when dealing with major repairs or replacements, such as extensive water damage, mold remediation, or replacing damaged flooring and appliances. Landlords may find themselves faced with a costly nightmare that could have been avoided with proper screening.

Many landlords out there have experienced thousands of dollars in damage done before a tenant moves on. Seen through this lens, a comprehensive background check seems like quite the deal!

Lost Rent During Vacancies

The result is turnover from poor tenant choice. Every vacancy equals lost rent, often for several months. Preparing the property for a new occupant and searching for new tenants can both take time.

Landlords have to eat several months of lost rent as they wait for move-ins on top of the unpaid rent during the eviction potentially leading to long periods of lost income.

Potential Insurance Premium Hikes

This matters to insurance companies because they’re focused on where claims happen and the risk to property. Renting out units that are subject to tenant-caused damage or a high frequency of claims will result in increased premiums, eating into rental profits over time.

Increasingly, the insurance industry would likely scrutinize more claims, and that could lead to much greater costs.

Best Practices for Effective Screening

Having a reliable tenant screening process in place minimizes risks and contributes to protecting your property and rental income. Effective screening protects landlords from tenants who will not pay their rent on time. It grounds those who steward the space and remain for the future.

This article takes a step back to discuss effective screening best practices that are fair to all applicants.

Establish Clear Rental Criteria First

Establish Clear Rental Criteria First. Write down what you want in a tenant. This should involve a minimum credit score, consistent income, no recent evictions and no derogatory rental history.

Work with your screening criteria. Establish clear rental criteria upfront. Use common-sense words in your advertisement and conversations with potential renters to set proper expectations. This saves time and maintains transparency in the process.

If you are looking for renters to have three times the monthly rent in income, state that clearly up front.

Use Comprehensive Background Checks

Don’t rely on credit history alone. Consider income, employment history, rental history and personal references. A comprehensive background check should identify any criminal records that would be relevant.

In San Francisco, most landlords cite using online tools that allow them to quickly pull reports from trusted vendors. These averaged reports typically group credit, eviction, and criminal background checks.

Use comprehensive background checks. Always adhere to the Fair Credit Reporting Act. If you deny an applicant, issue an Adverse Action Notice and provide the credit reporting service’s contact information.

Always Verify References Thoroughly

Speaking with previous landlords or employers can help verify what the applicant tells you on their application. Inquire about timely rent payments, maintenance of the property, and whether or not they would rent to the applicant again.

Always fact-check, such as confirming move-in dates or why someone moved away. This allows for any gaps or red flags that reports fail to catch to be identified.

Maintain Consistent Screening for All

Don’t focus on the amount of funding; focus on the application. Set your criteria in stone and save a record of each step taken. This increases public trust and protects you from claims of discrimination.

If an applicant asks why they were denied, having a clearly documented process helps you avoid running afoul of fair and legal practices.

Conclusion

Inexperienced landlords who skip rental property tenant screening in San Francisco create a recipe for disaster right from the start. Problematic tenants can damage your property, fail to pay rent, or introduce chaos you want to avoid at all costs. Smart screening helps you identify red flags early on. With that comes fewer headaches and consistent income. Just basic ones as checking a credit report or contacting previous landlords— it cuts time and money in the future. Landlords who stay within the law by doing fair and legal tenant screening stay out of trouble and avoid hefty legal penalties. Though landlord-tenant laws in San Francisco are fast evolving, the city remains rent-burdened with sky-high rent levels. Rigorous tenant screening protects your property and your profits! Looking to avoid the late nights and lost rent? Continue to do great screening every time. Tired of trading landlord horror stories for peace of mind? Protect your rental business by conducting an objective, thorough tenant screening.

Frequently Asked Questions

What risks do I face if I skip tenant screening in San Francisco?

Not to mention the expense of evictions, property damage, and the lack of unpaid rent due to problem tenants, all because you skipped screening. San Francisco has some of the strictest tenant protections in the nation, so it’s more difficult to get rid of bad tenants.

Is tenant screening required by law in California?

Is tenant screening required by law in California? Apply the same standards to all applicants uniformly, and avoid making decisions that can be construed as discrimination against protected classes.

What information does a proper tenant screening reveal?

What information does a proper tenant screening reveal? This is invaluable in helping you to disqualify non trustworthy tenants and keeping your investment safe and secure.

Can tenant screening help avoid legal issues?

Can tenant screening help avoid legal issues? By following this process, you minimize your legal risks and liability as a landlord.

Does tenant screening save money?

Tenant screening protects property owners against expensive costs for evictions, unpaid rent, and property deterioration. It’s a minor cost upfront, but it saves you thousands down the road.

What are common myths about tenant screening?

Others believe it’s too costly or takes too much time, or believe that a gut feeling will suffice. In truth, proper screening saves overall time with less evictions, lower level of distress, and higher level of passive income which is far more rewarding than living in constant fear and under constant distress which is related to screening via gut feeling.

What are the best practices for tenant screening in SF?

Make sure to implement a standardized, written procedure, run credit and criminal background checks, confirm income sources, and comply with fair housing regulations. Take advantage of local resources to ensure compliance with San Francisco laws.

Fill Vacancies With Confidence: PMI San Francisco’s Tenant Screening Advantage

Finding reliable renters in San Francisco’s competitive market can be challenging—one missed detail in screening can lead to late payments, property damage, or costly vacancies. PMI San Francisco removes that risk with a comprehensive tenant‑screening process designed to protect your investment and keep your rentals profitable.

Our experienced team verifies every applicant’s credit, income, employment, rental history, personal references and background, using industry‑leading technology and local insights to spot red flags before they become problems. We follow strict Fair Housing guidelines while delivering accurate results, so well‑qualified tenants are placed in our properties without the guesswork.

Once the ideal tenant is in place, PMI San Francisco continues to safeguard your property with clear lease terms, prompt rent collection, and responsive support—minimizing turnover and maximizing ROI.

Ready to fill your vacancies with tenants you can trust? Contact PMI San Francisco today and let our tenant‑screening experts bring you peace of mind and steady cash flow.

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Footnote Summary

[1] California Civil Rights Department. Fair Housing Overview. Retrieved May 2025 from https://calcivilrights.ca.gov/housing/
[2] San Francisco Rent Board. Tenant and Landlord Rights. Retrieved May 2025 from https://sfrb.org
[3] California Courts. Landlord/Tenant Self-Help Guide. Retrieved May 2025 from https://www.courts.ca.gov/selfhelp-housing.htm
[4] LegalZoom. Cost of Evicting a Tenant. Retrieved May 2025 from https://www.legalzoom.com/articles/how-much-does-it-cost-to-evict-a-tenant
[5] TurboTenant. Tenant Screening Guide for Landlords. Retrieved May 2025 from https://www.turbotenant.com/blog/tenant-screening-guide-for-landlords/
[6] RentPrep. Cost of Tenant Damage and Turnover. Retrieved May 2025 from https://rentprep.com/blog/landlord-tips/tenant-damage-vs-wear-and-tear/
[7] Nolo. Tenant Screening Laws and Best Practices. Retrieved May 2025 from https://www.nolo.com/legal-encyclopedia/tenant-screening-checklist.html
[8] Avail. Fair Housing Guide for Landlords. Retrieved May 2025 from https://www.avail.co/education/guides/fair-housing-guide
[9] California Department of Consumer Affairs. Screening Fee Limits. Retrieved May 2025 from https://www.dca.ca.gov/publications/landlordbook/screening.shtml