How to Analyze the Tenant Applicant’s File — Complete Checklist

You have received applications for your property. Now comes the most important — and most neglected — part of the rental process: analyzing the applicant’s dossier. A well-analyzed dossier is the difference between a tenant who pays the rent every month and one who leaves you without income for a year.

This guide provides a structured analysis process, document by document, with the red flags you should be aware of.

What Documents to Request

The list of documents to request varies depending on the applicant’s profile. Here is the complete list by category:

For employees (employment contract):

• Last 3 payslips (salary receipts)
• Employment contract (full copy — check if it is permanent, fixed-term, or open-ended)
• Last IRS tax return (or settlement note)
• Last 3 months of bank statements
• Valid identity document (Citizen Card or passport)
• Proof of NIF (Tax Identification Number)

For self-employed workers (green receipts):

• Last 2 IRS tax returns (Model 3 with Annex B)
• Green receipts from the last 6 months
• Last 6 months of bank statements
• Proof of registration as a self-employed worker with the Tax Authority (AT)

For retirees / pensioners:

• Updated pension statement (Social Security or National Pension Center)
• Last 3 months of bank statements

For non-resident / foreign applicants:

• Valid passport + residence visa or residence permit
• Proof of Portuguese NIF
• Proof of income in the country of origin (translated and apostilled, if necessary)
• Employer reference in Portugal or Portuguese employment contract

How to Verify Identity Documents

Identity verification is the first — and most basic — step. Do not skip this step.

1. Ask to see the original document in person. Do not just accept photocopies — anyone can forge a photocopy.
2. Check the name, photograph, and expiration date. If the document is expired, it is not valid.
3. For Portuguese citizens: check the Citizen Card (it has a chip) or the Identity Card (outdated, but still valid for some purposes).
4. For foreign citizens: check the passport and the Residence Permit (if applicable). The Residence Permit has an expiration date — verify if it covers the contract period.
5. Check the NIF on the Finance Portal (portaldasfinancas.gov.pt > Consultar NIF) to confirm that it matches the name provided.

Income Verification: Payslips, Tax Return (IRS), Bank Statements

Payslips — what to check:

• Name of employer and employee — they must match the identity document
• Monthly net amount — use this value to calculate the rent-to-income ratio
• Type of employment contract — permanent, fixed-term, unfixed-term, service provision
• Consistency across the 3 months — highly variable amounts may indicate shift work, commissions, or instability

Tax Return (IRS) — what to check:

• Total declared income — compare with the payslips
• Income source — Category A (employment), B (self-employment), F (rental), etc.
• Settlement note: whether there is tax to pay or a refund — IRS debts are a red flag

Bank statements — what to check:

• Average monthly balance — must be positive and stable
• Regular deposits that correspond to the declared payslips
• Absence of payments for tax executions or wage garnishments
• Spending patterns — credit cards with high balances, frequent withdrawals of large amounts

How to Calculate the Rent-to-Income Ratio

The rent-to-income ratio is the most important indicator of short-term solvency. It is simple to calculate:

Rent-to-income ratio = (Monthly rent / Monthly net income) × 100

Benchmark limits:

• Below 30%: low risk — comfortable candidate
• 30% to 33%: moderate risk — acceptable for most landlords
• 33% to 40%: high risk — consider asking for a guarantor or GLI insurance
• Above 40%: very high risk — we recommend rejecting or demanding additional guarantees

Red Flags in an Application File

Beyond the numbers, there are qualitative signs that should raise suspicion:

• Documents with erasures, corrections, or inconsistencies (e.g., name spelled differently)
• Payslips that do not match bank statements (different amounts)
• History of multiple moves in the last 2 to 3 years without a clear justification
• Extreme urgency to close the contract and move into the property immediately
• Refusal to provide certain documents — ‘I don’t have that document’ is almost always a red flag
• Bank statements showing bounced checks or debt executions
• Negative references from previous landlords or impossible to contact

Complete Screening Checklist — Phases and Steps

Phase 1 — Pre-screening (before the face-to-face meeting)

• Rent-to-income ratio calculated based on preliminary data provided by the applicant
• Employment status clarified: permanent / self-employed / retired
• Confirm readiness to provide all documents

Phase 2 — Document collection and verification

• Original identity document verified
• NIF verified on the Tax Authority Portal
• Payslips / Tax Returns (IRS) / bank statements reviewed
• Rent-to-income ratio calculated using actual data

Phase 3 — Credit and reference checks

• Bank of Portugal Credit Report requested or consulted
• Search for debt executions on the Citius portal
• Contact with previous landlords (at least 1)

Phase 4 — Decision and documentation

• Decision: Accept / Accept with additional guarantees / Reject
• Justification for the decision recorded (for compliance purposes)
• If accepted: contract drafted, signed, and registered with the Tax Authority (AT)