The Landlord’s Funnel (Part 4): Applications

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Okay folks, let’s recap where we’re at:

• You bought a property.

• Got it ready to rent.

• Listed it.

• Pre-screened some interest.

• Held a few showings.

Now a handful of people say they want to move forward.

That next step is the application — the moment your prospect turns interest into commitment.

The Easiest Path: Zillow Applications

As I mentioned before, Zillow has a great built-in feature for this. (No affiliation here.)

Your prospective tenant pays a $35 fee, and Zillow walks them through the entire process — credit, background, income documentation. Zillow keeps that fee, and for good reason: renters can reuse the same application for 30 days across multiple listings.

That means it’s convenient for both sides — they don’t feel like they’re wasting money, and you don’t have to handle sensitive info directly.

Once an application comes through, you’ll receive:
✅ Income documentation
✅ Credit report
✅ Background check

Let’s go through each.

1. Income Verification

Zillow doesn’t verify income automatically, but applicants can upload pay stubs or other documentation. Always require it.

Here’s my process:

• Look at the pay period and calculate monthly gross income yourself.

• I use a 3x rent rule — the household’s combined gross income should be at least 3× the monthly rent.

Not everyone has a steady paycheck. Sometimes income varies by week or month — that’s okay. If one pay stub shows $1,500/week, another $1,000/week, and another $800/week, take the average for a reasonable estimate (e.g. $1,100/week).

A more conservative approach is to use the lowest pay period — because if it happened once, it can happen again.

If you have to do mental gymnastics to make their income meet your criteria, you’re setting yourself up for hardship.

Be realistic.

If they fall short, you can ask for a co-signer, a higher security deposit (depending on local laws), or simply reject the application.

In addition, I also like to compare gross monthly income to minimum debt payments. Which brings us to the next section…

2. Credit Report

Zillow provides:

• The overall credit score

• % of on-time payments

• Estimated monthly debt payments

• Total debt balance

If your tenant pool has strong credit, this part’s easy — 700+ usually means low risk.

But if your market has weaker credit applicants, look for applicants with an on-time payment % greater than >95%.

A history of on-time payments is next best predictor that the prospect will pay you on time every month.

There is one exception: if an otherwise solid applicant has a low on-time rate, check the recency of their accounts.

I once had someone with 50% on-time payments. Sounds awful — but when I looked closer, all late payments that were tanking their score were pre-2020. Over the last 5 years, they’d paid 99% on time. That’s someone who hit a rough patch and rebuilt.

You’re not looking for perfection — you’re looking for patterns of responsibility.

3. Background Check

This one’s simple, but never skip it.

Zillow’s background check covers evictions and criminal history.

Personally, I avoid applicants with prior evictions. It’s not always a deal-breaker, but statistically, past evictions predict future problems.

You’re not judging their life story — you’re managing risk.

The Final Judgement

If your prospect meets your criteria — congratulations, you just rented out your property.

If not, tell them simply, professionally, and accurately.

Providing a clear reason for rejection isn’t just courteous — it’s also your legal protection.

In Summary

A good tenant checks three boxes:

• They earn enough to pay rent comfortably.

• They have a history of paying bills on time.

• They have no serious legal or eviction history.

If all three are true, you’ve mitigated your biggest risk: nonpayment.

No guarantees, but you’ve done your job well.

Takeaway

Applications aren’t just paperwork — they’re your final filter.

Treat them like a system, not a favor.

Because when you screen tenants with structure and consistency, you don’t just fill a vacancy — you build peace of mind and predictable cash flow.

That’s a Wrap

This is the end of The Landlord’s Funnel series. I hope you’ve enjoyed it as much as I’ve enjoyed writing it.

If you found this helpful, share it with a friend who’s thinking about becoming a landlord — it helps more than you think.

And if you missed any parts of the series, you can find them all here.

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