How to Screen Tenants the Right Way in Des Moines - Without Breaking Fair Housing Law
The single most important decision you make as a rental property owner isn't which property to buy. It's who you put in it.
A well-qualified tenant turns your investment into a predictable income stream. A poorly qualified one turns it into a year-long problem — missed rent, property damage, legal fees, and eventually the eviction process, which in Iowa runs four to eight weeks minimum even when everything goes smoothly.
The good news is that a disciplined screening process, applied consistently, dramatically improves your outcomes. The catch is that it has to be built on objective, documented criteria — not gut feelings — to stay on the right side of Iowa and federal fair housing law.
Here's how to do it right.
Start with Written Screening Criteria
Before you accept a single application, you need written screening criteria that you apply identically to every applicant. This is not just good practice — it's your legal protection.
Fair housing law prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability at the federal level. Iowa adds additional protected classes. The way landlords get into trouble is not usually overt discrimination — it's inconsistent application of standards. If you require three months of pay stubs from one applicant but accept one month from another, you've created a legal exposure regardless of your intent.
Document your criteria. Apply them uniformly. Keep records.
The Core Screening Framework
1. Income Verification — The 3x Rule
The industry standard is that a tenant's gross monthly income should be at least three times the monthly rent. This isn't arbitrary — it reflects what a tenant can realistically sustain over a 12-month lease without income stress creating payment problems.
At Des Moines's average rent of $1,100/month, that means verifying at least $3,300/month in gross income. For a $1,400/month property in Ankeny, you're looking for $4,200/month gross.
What to Accept as Income Verification
Last two months of pay stubs (preferred)
Most recent two years of tax returns for self-employed applicants
Offer letters for applicants starting a new job (with caution)
Bank statements showing consistent deposits (acceptable but secondary)
Do not accept verbal income claims. Do not make exceptions without documenting your reasoning.
2. Credit Check
Pull a full credit report through a reputable screening service. You're looking for:
Credit score: A 620+ score is a reasonable minimum for most properties. Lower scores aren't automatic disqualifications if everything else is strong, but they warrant closer examination.
Payment history: Late payments on rent or utilities are more predictive of rental behavior than credit card debt.
Collections and judgments: Prior eviction judgments are a serious red flag. Unpaid utility bills suggest the same behavior that creates problems for landlords.
Debt load: High debt-to-income ratios can make even an income-qualified applicant financially fragile.
Always get written authorization from the applicant before pulling credit.
3. Background Check
A criminal background check is standard and legally permissible in Iowa. The key is how you use the results.
Blanket "no felony" policies have been challenged under fair housing law in some jurisdictions because they can have disparate impact on protected classes. The safer and legally defensible approach: evaluate criminal history on a case-by-case basis, considering the nature of the offense, how long ago it occurred, and its relevance to tenancy.
Drug manufacturing or crimes involving property damage are directly relevant. An offense from 15 years ago with no subsequent record is a different conversation.
Document your reasoning in writing for any applicant you decline based on criminal history.
4. Rental History
Contact previous landlords directly — not just the most recent one. Call the number from a public records search, not just the number the applicant provides.
Questions Worth Asking
Did they pay rent on time?
Did they give proper notice before moving out?
How did they leave the property?
Would you rent to them again?
The last question is the most telling. A landlord who hesitates or deflects is telling you something even if they don't say it directly.
5. Employment Verification
Call the employer directly (again, from an independent source) and confirm that the applicant works there, their role, and whether they're full-time or part-time. You don't need salary confirmation — the pay stubs handle that — but you do want to confirm the employment is real.
Red Flags to Take Seriously
Some things that consistently predict problems:
Prior eviction on record. This is the clearest predictor of future eviction risk. Not impossible to overlook, but requires exceptional compensating factors.
Frequent moves. Multiple addresses in 2–3 years, especially without clear explanations, suggests either payment issues or difficult-to-live-with behavior.
Inability to provide landlord references. "I lived with family" or "I owned my home" can be legitimate. Multiple back-to-back claims are worth scrutinizing.
Pressure to decide immediately. Qualified tenants don't pressure landlords. A push to skip screening or approve immediately is a sign.
Income that can't be documented. Cash income, vague freelance work, informal arrangements — these create problems when rent gets tight.
Offering to Pay Multiple Months Upfront: It might seem that a tenant may be more qualified if they offer to pay multiple months upfront but its actually farther from the truth. They are typically paying you with rent that’s due to their current landlord. And accepting multiple months’ rent can limit your options to removing them if they become a problem.
Consistent Application Is Your Legal Shield
Every applicant should go through the same process and be evaluated against the same written criteria. If you make an exception — and sometimes exceptions are warranted — document why in writing at the time you make the decision.
Keep all applications, screening results, and decision documentation for at least three years. If a fair housing complaint ever comes, your paper trail is your defense.
First-Come, First-Qualified
One practical framework that protects you legally and fills units efficiently: approve the first applicant who meets all your criteria. Not the first to apply — the first to fully qualify. This removes any subjectivity about who "seems better" and keeps your process objective and defensible.
The Bottom Line
Tenant screening is where your returns get made or lost. The wrong tenant in a Des Moines single-family rental can cost you $5,000–$15,000 by the time the dust settles — eviction costs, property damage, lost rent, and make-ready. A disciplined, documented process applied consistently is the best investment you can make in your property before a tenant ever moves in.
At Grassroots Property Management, screening is built into everything we do — from the leasing workflow to the documentation we maintain on every placement.
Book a free consultation to learn how Grassroots handles tenant placement:
Schedule a Consultation
