California County Bans Tenant Background Checks

There are hundreds of thousands of homeless individuals across the nation, and in many areas, the problem has reached a crisis point. Sprawling homeless encampments spring up wherever someone can pitch a tent, and these spaces can be dangerous to the public and their occupants. Inflation, rising rents, and a lack of available housing have all contributed to these problems—but according to many advocates for reform, a fundamental problem has been discrimination against those with criminal records.

Many formerly incarcerated find it very challenging to acquire housing when landlords check criminal records as part of the application process. In some places, individuals with convictions cannot move in with family members due to restrictive background check laws or prohibitions against renting to those with records. The result is immense housing pressure that often leads to only one possible outcome: homelessness. Some cities and states are considering phasing out tenant background checks to combat this problem despite property owners’ objections.

In Alameda County, city supervisors voted to adopt such a ban for unincorporated areas of the county. The major cities of Berkeley and Oakland, located in Alameda County, have already enacted such a ban. The new rules would also make it illegal to prohibit individuals with records from moving in with family.

Considering criminal records as a determining factor in rental applications is entirely off the table in Alameda County. Some locales, such as Cook County in Illinois, have instead mandated an individualized review of every applicant, while criminal records remain a factor to consider. However, California county’s law makes it clear that any real estate for rent must comply with these rules.

Landlords in these communities must evaluate rental applications strictly on their merits, which increases the importance of careful due diligence. Even without criminal records, property managers and landlords must still select tenants who will most likely care for the home properly and pay rent on time.

That enhances the need for fast, reliable credit checks and a method for verifying references and rental history. Over time, landlords may begin to welcome such changes. Expanding the pool of eligible tenants ultimately means more opportunities to fill vacancies quickly and maintain a substantial, steady rental income.

Will more counties or whole states remove the criminal background check from the equation? That remains to be seen. However, landlords nationwide should take note of the changes happening in places such as Alameda. They serve as an essential reminder that legislation and regulation can change suddenly, and those changes can significantly impact how you do business. Stay current and ahead of the curve to continue an efficient and fully compliant property business.

Due to the constant flux, growing regulatory burdens and uncertainty regarding tenant screening, backgroundchecks.com discontinued our Tenant Background and related Credit Check services effective September 2024.