The Right Tenant Makes Everything Else Easier

Tenant placement is one of the most consequential decisions in property management. The right tenant pays on time, maintains the space, renews their lease, and treats your property like a business asset. The wrong one costs you months of lost rent, legal fees, property damage, and the time and expense of starting over.

At Highlands, screening is not a formality. It is a structured, documented process applied consistently to every applicant — with no shortcuts and no exceptions. For commercial properties, we go well beyond a credit check. For residential, we apply the same rigor that protects your asset and your income.

We do not charge a management fee during vacancy. Our fee is a percentage of rent collected — if your property isn't generating income, you don't pay us.

Business Financial Review

We review business financial statements, tax returns where available, and bank records to evaluate revenue stability, cash flow, and debt load. A business that can't demonstrate consistent revenue is a lease risk regardless of what the owner's personal finances look like.

Entity Structure Verification

We verify the legal structure of the business — LLC, corporation, partnership — and confirm it is properly registered and in good standing with the state. We identify who the principals are, what their ownership stake is, and whether personal guarantees are appropriate given the entity structure.

Operating History

How long has the business been operating? A startup and a 10-year-old established business represent very different risk profiles, even if their financials look similar on the surface. We factor operating history into our evaluation and adjust lease terms and security deposit requirements accordingly.

Principal Background Screening

For commercial tenants, we screen the principals behind the business — not just the entity. This includes credit history, background check, and any prior landlord disputes or civil judgments. A business is only as reliable as the people running it.

Prior Landlord and Reference Verification

We contact prior commercial landlords directly when possible. Did they pay on time? Did they maintain the space? Did they honor their lease terms? A prior landlord's experience is one of the most predictive indicators of future performance.

Industry and Use Evaluation

We evaluate whether the proposed business use is appropriate for the space, consistent with the lease, and compatible with other tenants in a multi-tenant building. A tenant whose business model creates noise, foot traffic conflicts, or compliance concerns can affect the performance of your entire property.

Residential Tenant Screening

For residential tenants, our screening process is thorough, consistent, and applied fairly in compliance with applicable fair housing law.

Every applicant goes through the same process. We do not make exceptions based on urgency, pressure to fill a vacancy, or an applicant's story. Consistent screening protects you legally, financially, and operationally — and it's the foundation of a tenancy that performs.

1. 1
   Income Verification — minimum income threshold relative to monthly rent
2. 2
   Employment Verification — current employer, position, and tenure confirmed
3. 3
   Credit History — full credit report reviewed, not just a score
4. 4
   Rental History — prior landlord contacts attempted for all recent tenancies
5. 5
   Eviction Check — national eviction database search
6. 6
   Criminal Background Check — reviewed in accordance with applicable law
7. 7
   Public Records Check — judgments, liens, and civil matters
8. 8
   Bankruptcy History — recent or pending bankruptcy filings
9. 9
   Collections History — patterns of financial non-performance
10. 10
    Identity Verification — government-issued ID confirmed against application

Residential tenants who don't pay can typically be removed through a defined legal process, as frustrating and expensive as that is. Commercial tenants who don't perform represent a larger and longer-term problem — longer lease terms, higher carrying costs during vacancy, more complex legal proceedings, and potential damage to the property that residential security deposits don't cover.

Investing in thorough screening on the front end is almost always less expensive than managing a problem tenant on the back end. Our process is designed to give you the best available information before anyone signs a lease.

Do you charge applicants for screening?

Application and screening fees are handled in accordance with Tennessee law and disclosed to applicants at the time of application.

What happens if an applicant is declined?

We follow proper adverse action procedures and maintain documentation in compliance with the Fair Credit Reporting Act and applicable Tennessee law.

Do you screen tenants for properties you don't manage?

Tenant screening is part of our full management service. Contact us to discuss your situation.

How long does the screening process take?

Most screenings are completed within 2–3 business days depending on the responsiveness of prior landlord references and the complexity of commercial applicant verification.