TCM Property

Mistakes Made, Lessons Learned: A Guide for Small Business Landlords

Requesting Credit, Criminal Background, and Eviction Reports from Rental Applicants


In the realm of property management and leasing, one of the most critical steps in finding suitable tenants is conducting thorough background checks. While meeting potential renters face-to-face can give you a sense of their personality and reliability, it’s equally important to delve deeper into their background to ensure they are a good fit for your rental property. Requesting credit, criminal background, and eviction reports from applicants is a fundamental practice that empowers landlords to make informed decisions and safeguard their investments. In this comprehensive guide, we’ll explore why these reports are essential, how to obtain them, and the best practices for leveraging this information in your tenant screening process.

Why Request These Reports?

  1. Assess Financial Responsibility: A credit report provides valuable insights into an applicant’s financial history, including their payment behavior, outstanding debts, and credit score. This information helps landlords gauge an individual’s ability to meet rent payments and manage their finances responsibly.
  2. Ensure Safety and Security: Conducting a criminal background check enables landlords to identify any prior criminal convictions or charges that may pose a risk to the property or other tenants. Safety is paramount in rental properties, and knowing who you’re renting to can help prevent potential security issues.
  3. Mitigate Risk of Non-Payment: Eviction reports highlight any past evictions or landlord-tenant disputes, giving landlords a glimpse into an applicant’s rental history and potential red flags. By screening for eviction history, landlords can minimize the risk of leasing to tenants who have a track record of non-payment or lease violations.

How to Obtain These Reports

  1. Credit Reports: You can request credit reports from the major credit bureaus, including Equifax, Experian, and TransUnion. Landlords can either request reports directly from the bureaus or use third-party screening services that provide comprehensive tenant screening packages.
  2. Criminal Background Checks: Criminal background checks can be obtained through various channels, including online background check services, local law enforcement agencies, or specialized screening companies. Make sure to comply with federal and state laws governing the use of criminal records in tenant screening.
  3. Eviction Reports: Eviction reports are typically obtained from tenant screening companies that specialize in compiling rental history data. These reports contain information about past evictions, landlord-tenant disputes, and court filings related to rental properties.

Best Practices for Tenant Screening

  1. Obtain Consent: Before conducting background checks, ensure that you have obtained the applicant’s consent in writing. Failure to obtain consent could lead to legal repercussions and violations of tenant privacy rights.
  2. Use a Standardized Process: Establish a consistent screening process that includes requesting the same types of reports from all applicants. This helps maintain fairness and consistency in your tenant selection process.
  3. Review Reports Thoroughly: Take the time to review each report carefully and look for any potential red flags or discrepancies. Pay attention to factors such as credit scores, criminal convictions, and eviction history.
  4. Consider Context: While negative information in a background report may raise concerns, it’s essential to consider the context and assess each applicant on a case-by-case basis. Look for patterns of behavior and consider factors such as mitigating circumstances or evidence of rehabilitation.
  5. Adhere to Fair Housing Laws: Ensure that your tenant screening practices comply with fair housing laws and regulations to avoid discrimination based on protected characteristics such as race, religion, gender, or familial status.

Conclusion

Requesting credit, criminal background, and eviction reports from rental applicants is a critical step in the tenant screening process. By gathering comprehensive information about prospective tenants, landlords can make informed decisions and mitigate risks associated with leasing properties. Implementing a standardized screening process, obtaining consent, and reviewing reports thoroughly are essential practices for landlords seeking to find reliable and trustworthy tenants. By prioritizing tenant screening and due diligence, landlords can protect their investments and foster positive rental experiences for both tenants and property owners alike.