During the apartment application process, landlords ask potential renters to provide a lot of information about themselves. Some are simple like your name and phone number, while others are more personal like your income. But before accepting you as a tenant, landlords need to ensure that all the things you said about yourself are accurate and truthful. That’s where background checks come in.
With your permission, landlords can run background checks on you to verify all the information you provided. After all, landlords want trustworthy and reliable tenants, so they need to do their due diligence. A housing provider’s substantial examination of your past with an apartment background check looks for any red flags or anything they need to worry about. But what are they looking for exactly?
What shows up on a background check?
In a nutshell, a background check shows some or all of the details of your personal, financial and professional background. Taken all together, they help paint a more detailed, complete picture of you for the landlord.
The top reasons why landlords run a background check for apartment applicants
Having a stranger look into your personal history can feel invasive. But if you know what information they’re looking at, it helps ease worries. Here’s everything that a future landlord looks at while running a background check.
1. Confirming personal information and identity
Landlords want to protect their rental properties, and that calls for accepting honest tenants. They need to know that you are who you say you are, so the background check validates your name, address, age and other identifying facts.
2. Confirming past and present addresses
On your application form, you’ll usually need to list your previous address history. During the background check process, landlords verify that you indeed lived at those previous addresses.
3. Criminal history and criminal record
No one wants someone who is potentially dangerous or involved in illegal activity living in their apartment rental. Not only does it put other tenants living in the same place at risk, but it could open the landlord up to litigation if something happens.
That’s why many landlords and property managers conduct a criminal background check to screen for a felony record or prior arrests. These types of checks look through police records across the country, uncovering pending criminal cases, prior arrests and criminal convictions.
Having a conviction on your record is more serious than having an arrest because you weren’t or haven’t been charged with any crimes. Arrests are usually scrubbed from your record after seven years, but convictions stay on your record permanently. That being said, having a ton of arrests credited to you wouldn’t look great either.
4. Sex offense registry
As part of the criminal background screening, landlords in some states may check if you pop up on any sex offender lists. If you are a convicted sex offender, you could be denied on these grounds in some states according to state laws. But others don’t allow landlords to discriminate against potential applicants based on this type of offense.
5. Employment history
Along with your personal information and criminal background, your employment history is one of the most important parts of your background check. On your rental application, you’ll be asked to list your current and at least one previous employer, as well as your position and how long you’ve been with the company.
Landlords verify and confirm all this information while running background checks, often by calling or contacting your employer directly.
6. Income
When submitting your application, you’ll need to include pay stubs or other proof of steady income so the landlord knows you can comfortably afford the monthly rent. As part of the employment history check, landlords confirm that you make as much money as you stated on the application by checking with your employer.
It’s also not enough to make roughly the same amount of money each month as the cost of the rent. Landlords know that you have other expenses like utilities and food, so they need to ensure you make enough to comfortably afford all essentials. Having a monthly income three times the cost of rent is the norm.
7. Renter history
Landlords want a stable renter with good rental history. When they check your rental background, the key areas they’ll look into are your payment history and if you’ve had any issues with previous landlords. They can see if you pay rent on time and if you have any previous evictions.
Late rental payments or being evicted by a previous landlord are big red flags that could result in your application being thrown out.
8. Contact information for previous landlords
As part of the rental history report, contact information for past landlords or property managers may come up. Former landlords serve as great references for you as a tenant. As an extra precaution, you could get asked to list the name, phone number or email of your former landlords so the property manager can get in touch.
If you have no renter history and this is your first time trying to rent an apartment, you can still be considered based on other criteria.
9. Credit report
A standard background check will not include your credit score and credit report, as that is information the landlord needs to specifically request from one of the main credit-reporting agencies. But some details of your financial history can show up on a general background check.
If a landlord wants to know more specifics about your financial history such as what your credit score is or if you have any outstanding debts, they’ll need to request a separate credit check for that information.
How far back does the background check go?
An apartment background check typically looks back at the last seven years of your life, but some landlords may go back as far as 10 years.
The reason for this is that under the Fair Credit Reporting Act, you can access a criminal record for up to seven years. However, you can search for convictions indefinitely and they are a part of your permanent criminal history.
What information do I need to provide for the background check?
Landlords use your Social Security number to access your background information as it’s the one piece of personal data that remains constant your entire life. Addresses can come and go, and you get new phone numbers. Even names get changed. But your Social Security number stays with you for life. That’s why it’s the most critical piece of personal information a potential landlord needs to run accurate and comprehensive apartment background checks.
Do I need to pay for my rental background check?
Nearly all landlords and property managers include an application fee as part of their apartment application process. The application fee covers the background check cost, as well as the cost of running a credit report.
These fees typically run between $25 to $50, but they can go higher and be upwards of $100.
Can I refuse to authorize a background check?
All rental applications should include a section where you can authorize having a background check performed on you during the tenant screening process. You are within your right to not sign and refuse to authorize a background check.
But that also means landlords are within their right to reject your application. Renters with a criminal history aren’t protected under the Fair Housing Act. This leaves the door open for landlords to discriminate or reject your application since they can’t legally look into your background. However, a growing number of cities like Seattle and San Francisco are banning landlords from running a criminal background check. Staying well-versed in the local laws for tenants and landlords in your area helps you know your rights.
Is there anything I can do to improve my rental background check?
All potential tenants want to look as good as possible on their background and rental application to stand out from the crowd. But at the same time, no one is perfect. Everyone makes mistakes and there are hiccups on your background check reflecting that. You may have bad credit. Maybe you’re temporarily out of work due to an unexpected event or sudden job loss.
But having one or two less-than-stellar components of your background check doesn’t necessarily disqualify you from being considered. If you have bad credit or a felony record, be upfront about it with the landlord or answer truthfully if the landlord asks. This reflects well on you, showing that you’re honest and direct about past mistakes. Even if you do have a bad credit history, criminal convictions or are looking for a new job, landlords can still consider you for the rental property if they understand the extenuating circumstances.
Other than that, improving your background check is all about playing the long game. You want to show a property manager good patterns over time, like holding down jobs or raising your credit score through thoughtful spending. Being a good tenant, paying rent on time and maintaining a good relationship with your landlord or property manager will elevate a subpar rental history. Being a responsible person in all areas of life can help you land a great apartment.
Landlords cannot reject your application based on these factors
During this process, it can feel like landlords get pretty personal based on all the sensitive information they collect from you. But there are limits to what information they can gather. They need to have a nondiscriminatory interest in all potential applicants, meaning they can’t reject someone simply because of prejudice. Under both federal and state laws like the Fair Housing Act, landlords can’t deny or exclude persons based on any of the following:
- Race or ethnicity
- Gender
- Skin color
- Religion
- National origin/Ethnic background
- Disability
Background checks help landlords find the best tenants for their properties
Background checks are sometimes a frustrating part of the rental process, especially if yours isn’t perfect. But landlords need to protect their property and create a safe living environment for all their tenants.
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional legal or financial advice as they may deem it necessary.
Source: rent.com