Can Landlords Do Background Checks?

Background checks have been part of the housing application process for landlords for many years. Most tenants would find that prospective landlords require it, from apartment complexes to rental houses. This post explains the types of information that tenant background checks could reveal. 

Types of Tenant Background Checks 

The first thing to understand is that landlords typically don’t run only one type of screening when they do background checks. Instead, they compile their tenant background checks from a variety of different sources, which may include the following: 

• Criminal history checks. Most housing background checks would start with a criminal history search. Landlords are interested in learning whether a prospective tenant has a criminal background because some of that information can indicate a risk to other tenants, property, or the landlord. In particular, landlords would be wary of violent crimes, sexual offenses, convictions that indicate a history of destruction of property such as arson or vandalism, and some drug crimes, for example, manufacturing meth or distribution of illegal substances. These crimes can indicate behaviors most landlords want to prevent on their properties.
• Rental history. Through civil history checks and reference checks with former landlords, a property owner can learn whether a prospective tenant has a record of evictions, late or missed payments, property damage, or other property rental red flags.
• Employment or financial status. Landlords customarily perform employment verification or credit history checks to determine whether a tenant can maintain monthly rental payments. Employment checks ensure the candidate has gainful employment and an income supporting the rent rate. Credit history checks show a person’s financial past and sense of responsibility. Landlords may also require pay stubs or other proof of employment instead of an employment verification check.

A Note on Housing Background Check Restrictions 

While landlords prefer doing background checks in most cases, it doesn’t mean these checks have no restrictions. Critics of tenant background checks say that they create a near-impassable barrier for ex-offenders trying to rebuild their lives, increasing the likelihood of criminal recidivism and other consequences.

Legislative advances have banned housing background checks in some parts of the country. For instance, in Oakland, California, an ordinance prohibits criminal history checks in most housing application processes.

Many cities and states have their version of fair housing regulations, but the debate and controversy continue. Therefore, landlords must know their area’s laws to ensure they don’t commit noncompliance crimes by conducting due diligence checks or discriminating by refusing housing. 

At backgroundchecks.com, we no longer provide tenant and credit screening services. Because this is not a core market for us, and due to the ongoing confusion on the issue, we cannot support its rapidly growing regulatory burdens. We continue offering core services for real estate employment and individual verifications.