I'm with OMG!, the credit check is probably the most important tool. That being said doing the full background checks such as employment & previous landlord are also good investigation tools.
There are some great questions to ask previous landlords such as confirming the address, amount of rent paid, any rent arrears, any pets, noisy vehicles and the best question - 'Would you rent to them again?'. It's amazing how many times I have called landlords and their tenants didn't even tell them that they were vacating or looking for another place. What a shock!
In terms of employment information, anyone can write down their friend's name and ask them to pretend they are a boss of the applicant. I recommend calling the applicant's company directly (finding the company number through google) and then asking to speak to the HR department or the Manager. They can usually confirm all the information you need in terms of employment and salary.
Lastly, if two applicants are both equally qualified to your standards and willing to pay the same amount for the same term, pick the best one according to your gut!
Hope that helps
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