What a Background Check Actually Includes
When landlords talk about "running a background check," they're usually referring to a bundle of searches that together paint a picture of who the applicant is and how they've handled their obligations in the past. A proper tenant background check isn't just one search — it's several working together.
The standard components include a criminal history search, an eviction history search, an identity verification check, and sometimes a sex offender registry check. Some screening services bundle all of these together, while others charge separately for each component. Either way, you need all of them to get a complete picture.
Relying on just one type of check leaves blind spots. An applicant might have clean credit but a history of evictions in another county. Another might have no criminal record but three previous landlords who wouldn't rent to them again. Each check reveals a different piece of the puzzle.
Criminal History Searches
A criminal background check searches court records for felony and misdemeanor convictions. Most screening services search at the county, state, and federal level, though the depth of the search varies by provider and price point.
What you find in a criminal search requires careful handling. You cannot implement a blanket policy of rejecting any applicant with any criminal history — the Department of Housing and Urban Development has issued guidance stating that such policies may violate Fair Housing law because of their disparate impact on protected classes.
Instead, you need to evaluate criminal history on a case-by-case basis, considering the nature of the offense, how long ago it occurred, and whether it's directly relevant to the tenancy. A decades-old misdemeanor is very different from a recent felony conviction for property destruction. Your criteria should be written, consistent, and focused on legitimate safety and property concerns.
Some jurisdictions have gone further with "ban the box" laws that restrict when and how landlords can consider criminal history. A growing number of cities prohibit asking about criminal history on the initial application and only allow the check after a conditional offer has been made. Check your local laws before building your screening process.
Legal Note: Arrest records without convictions generally cannot be used as a basis for denial. An arrest is not evidence of criminal activity — only a conviction is. Using arrest records alone can expose you to Fair Housing liability.
Eviction History Searches
This is arguably the most important single check in your screening process. Past eviction filings are one of the strongest predictors of future problems. An applicant who has been evicted before is significantly more likely to require eviction again than someone with no eviction history.
Eviction searches pull from court records to find any unlawful detainer filings, judgments, or writs of possession associated with the applicant. The depth of the search depends on the provider — some only search the state where you're located, while better services search nationally.
One important nuance: an eviction filing is not the same as an eviction judgment. Sometimes landlords file for eviction and the case is dismissed, settled, or the tenant vacates voluntarily. While a filing is still a data point worth considering, a judgment is a much stronger indicator of a problem tenant. Your criteria should distinguish between the two.
Also be aware that some states and cities have passed laws restricting the use of eviction records in screening decisions, particularly filings that didn't result in judgments. This is an evolving area of law, so staying current on your jurisdiction's rules is essential.
Identity Verification
Identity verification confirms that the person applying is who they claim to be. This step catches applicants who provide fake Social Security numbers, use stolen identities, or misrepresent their personal information.
Most screening services verify identity by cross-referencing the applicant's name, date of birth, and Social Security number against public records and credit bureau data. If the information doesn't match, you'll get a flag — which doesn't necessarily mean fraud, but it does mean you need to investigate before proceeding.
Identity verification also catches applicants who have used multiple names or aliases, which could indicate they're trying to hide a problematic history. It's a relatively cheap check that occasionally catches something serious, so there's no reason to skip it.
Choosing a Screening Service
You have two main options for running background checks: using a dedicated tenant screening service or doing it yourself through individual record searches. For most landlords, especially those managing more than a couple of units, a screening service is the better choice.
Dedicated screening services like TransUnion SmartMove, RentPrep, and MyRental pull all the necessary checks in one report. They handle FCRA compliance, provide consistent formatting, and often allow you to pass the cost to the applicant. Prices typically range from $25 to $45 per applicant for a full screening package.
When choosing a service, look for one that includes criminal history at multiple levels (county, state, and federal), a nationwide eviction search, identity verification, and credit reporting. Some services also include income verification and previous address history, which add useful context to the picture.
Comparing services? Different screening providers offer different depths of search and reporting. See how various screening tools stack up to find one that fits your property management approach and budget.
FCRA Compliance
The Fair Credit Reporting Act governs how consumer reports — including tenant background checks — can be obtained and used. As a landlord using background checks in your screening process, you have specific legal obligations under the FCRA.
First, you must have a permissible purpose for pulling the report. Evaluating a rental application qualifies. Second, you must provide the applicant with a written disclosure that you'll be running a background check, and you must get their written authorization before doing so. This is typically handled through the rental application itself.
Third, and this is where many landlords slip up, if you deny an applicant based on information in their background check, you must provide them with an "adverse action" notice. This notice must include the name of the screening company, a statement that the company didn't make the decision, and the applicant's right to dispute the information and get a free copy of their report.
Skipping the adverse action notice is one of the most common FCRA violations by landlords, and it carries real penalties. Most screening services provide templates or automated adverse action letters, so there's no excuse for missing this step.
What You Can and Cannot Consider
Even with a thorough background check in hand, you need to know what you're legally allowed to use in your decision. The rules vary by location, but some general principles apply everywhere.
You can consider criminal convictions (with the case-by-case analysis discussed above), eviction judgments, identity verification failures, and patterns that suggest the applicant misrepresented themselves on the application. These are all legitimate business criteria directly related to whether someone will be a reliable tenant.
You cannot consider arrests without convictions, sealed or expunged records, juvenile records, or any information that would constitute discrimination based on a protected class. You also cannot apply different standards to different applicants — your criteria must be the same for everyone.
The safest approach is to write down your screening criteria before you start accepting applications, apply those criteria consistently to every applicant, and document your reasoning for every decision. This protects you legally and makes the entire process more efficient.
Background checks are just one piece of the puzzle. Combine them with thorough credit report analysis and a solid application process for the most complete picture of every applicant. And always keep an eye out for the red flags that numbers alone won't reveal.