Imagine you’re applying for that apartment you were eyeing for months. Your deposit is ready. Your references are superb; and you think it’s the perfect time to close the deal. Then, your landlord or property manager looks at your check and pauses. So, what does a background check show them? Your rental history, your job gaps, or maybe even something else you never considered? Let’s find out together. Read below for more information.
Main Takeaways
- What is on a background check: credit history, criminal background, eviction history, employment history, rental history, income verification
What Does a Background Check Show?
What does a background check show? It’s how a professional landlord or property manager in Northern Virginia reviews a potential tenant’s credit, income, eviction record, and criminal, rental, and employment history. With the information we gather, we determine if the tenant is reliable, able to pay rent, and more. Now, let’s discuss these components in detail.
Credit History
The term ‘credit score’ is a number that shows a person’s history of repaying their debts. Credit scores vary between 300 and 850; the higher the score, the more consistently someone has followed through with their financial obligations. Essentially, landlords take credit reports into consideration to ascertain whether their tenants are financially responsible or, to the contrary, risky.
In general, landlords prefer tenants with high credit scores. Such scores indicate that tenants likely can handle the rent each month.
Criminal History
A criminal history check shows a tenant’s past and pending accusations and convictions. It’s critical to note that a landlord must consider someone’s criminal history in accordance with federal and local regulations. For example, according to the Fair Criminal Screening for Housing Act, landlords can only consider pending accusations and convictions if they happened within the past 7 years.
Eviction History
In terms of what shows up on a background check, eviction history is a key feature of one. As the name implies, this section shows whether the applicant has previously been evicted from a rental. It gives landlords a peek into what they could be like as a tenant.
Of course, landlords know that an eviction on a tenant’s record doesn’t automatically preclude them from being a good tenant. After all, sometimes sudden life events like illnesses or job losses befall a tenant, and they’re left unable to pay the rent. However, in general, it’s something they keep in mind as they make a decision.
Employment History
Next, a typical background check shows the tenant’s employment history. It details their current and former employers and how much they have earned with those employers. In turn, landlords can assess the tenant’s financial stability and income through paystubs.
Rental History
A background check’s rental history report showcases what a tenant’s past behavior has been like as a renter. It displays past addresses, time spent at each place, and whether or not the rent was paid on time. Here, landlords are looking to see if a tenant took care of the property, followed the lease, and had disagreements with previous landlords.
All in all, this can tell landlords a good deal about what kind of tenant they will be.
Income Verification
Considering what is on a background check, income verification is one of the top components landlords factor in. It reveals whether a person can pay the rent or not. As a rule of thumb, most landlords want tenants’ income to be three times the rent. They employ the “rule of three” to ensure tenants can comfortably pay the rent without sacrificing the funds they need for the essentials.
To find a person’s income, landlords look for income verifications like pay stubs, bank statements, and telephone numbers of the employer. If the tenant is self-employed, the landlord may ask for copies of tax returns and other documentation of income. By doing this, landlords can make sure the tenant is prepared for the responsibility of paying the rent.
Legal Considerations in Rental Background Checks
By now, we know what a background check shows. However, that’s not the end of this discussion. There are some important legalities to keep in mind, too. Let’s take a closer look at these general rules and why they matter.
Tenant Consent
Landlords must acquire a tenant’s written consent before they view their credit score, rental history, and the like. As a rule, landlords should not access such personal information without asking first. It’s the right thing to do, both legally and ethically.
Data Security of Tenant Information
By law, a landlord must protect a tenant’s privacy. They are obliged to keep tenant data secure and confidential, whether it’s through a physical lock or digital encryption and/or password-protection. In addition, they generally cannot share it, unless it’s legally required and/or they have the tenant’s written permission. When the time comes for landlords to dispose of this data, they must ensure every whiff of information is deleted. This helps keeps tenants safe and landlords be legally compliant.
No Discrimination Allowed
According to the Fair Housing Act, it’s illegal to discriminate against people in the background check processes (and all other rental processes) based on their protected classes. In other words, landlords cannot treat tenants differently on the basis of race, color, national origin, religion, sex, familial status, and disability. For example, landlords cannot ask whether tenants are married or not on their rental application.
Instead, the landlord must use the same objective background check criteria, policies, and practices on all prospective tenants. As another note, many states have their own additional protected classes. As such, landlords must do their due diligence to protect these groups’ rights.
Furthermore, landlords cannot perform arbitrary discrimination against tenants based on a tenant’s non-qualification related qualities, like their political affiliation or style of dress.
Streamline Your Background Check Process with Bay Property Management
To answer, “what does a background check show,” it gives a landlord a complete picture of a tenant’s credit, eviction, employment, and criminal history, as well as their income information. It helps the landlord understand how responsible a tenant is, whether they can pay rent, and whether they’ve treated the property and neighbors respectfully.
Without airtight tenant screening, landlords’ properties and profits are vulnerable to wildcard tenants. Even worse, a slight slip in judgement could expose each party to legal trouble. That’s why it’s absolutely critical to get the screening process done just right.
If undergoing tenant screening sounds daunting, landlords don’t have to go at it alone. As professional property managers, Bay Management Property Group handles tenant screening on landlords’ behalf, so no stone is left unturned. And that’s not all we do. We also bridge the gap between landlord and tenant satisfaction, taking care of maintenance, inspections, rent collections, and other tasks so everyone’s rental experience is more simplified. Call us today or look at our listings to get started!