Real Estate

Proposed Tenant Background Check Bans Draw Criticism

Written by Michael Klazema | Oct 1, 2024 4:00:00 AM

For the formerly incarcerated, re-entering society is fraught with challenges. Reform advocates have made consistent efforts to simplify that path, including ban the box laws to expand employment access. A stable, safe place to live is also difficult for many people with criminal records to find. 

According to reform proponents, some landlords use criminal background checks as a discriminatory tool, excluding those with past charges or prison time from rental housing. Tenants face the potential of automatic disqualification when they apply. Rehabilitated individuals or those found guilty of minor crimes find it almost impossible to secure stable housing. In New York, advocates have dubbed this process the prison-to-shelter pipeline as many individuals transition from prison straight to homeless shelters. 

Lack of housing

Aiming to combat ongoing concerns about lack of housing access, the New York City Council considered bills in September 2020 to address the problem. One such bill would ban tenant background checks to examine a rental applicant’s criminal record.

The bill would also prohibit asking applicants about their criminal histories and denying housing based on their responses. Meanwhile, the city council considered adopting a bill to strengthen the city’s ban on housing denials due to an applicant’s source of income. However, without a statewide ban, it remains a contentious and evolving issue in New York.

Although we were one of the last companies to do so, after September 2024, we no longer provide tenant screening and related credit report services as we refocus on core markets.

Advocates and some members of the City Council contend that these efforts will continue to chip away at the inequality that may contribute to higher rates of recidivism. By increasing access to housing for rehabilitated individuals with a criminal record or on public assistance, they hope that those affected will prosper in a more stable living environment. 

Landlord rights

In New York, landlords aren’t restricted from checking criminal records on potential tenants – while the New Jersey ban the box movement, seeks to eliminate prejudice against those who have previously served prison time.

Some cities in New York have executed restrictions, but plans for a nationwide ban haven’t gained much traction. The Department of Housing and Urban Development (HUD) suggests evaluating individual cases on merit instead of blanket bans. Still, the issue of criminal background checks in tenant screening remains a topic of debate in New York, with no intention of prohibiting them across the state.

Landlords, brokers, and advocates for property owners all contend that such rules not only curtail an owner’s rights but also make communities less safe. Although the laws would still require landlords to ensure that they do not violate minimum distance laws regarding sex offenders, some opponents argue that neighbors would be unable to trust one another. 

While it’s unclear whether such a change would create a ripple effect on other communities, property owners should remain current and informed on the critical laws governing their industry.