It can be hard to find trusted roommates. Find out about the most popular ways to screen tenants here.
What you will find out:
Is a background check or a credit check required by the law?
When can I start checking a tenant’s credit and background?
When I look at a credit score, what am I looking for?
What can I do if a renter does not want to pay or gives me a bad report?
Is it against the law to refuse to rent to someone with a criminal record?
Is it okay to ask for a certain income or credit score?
Before you rent to someone, you should make sure that they can pay the rent every month. Landlords usually check the credit and history of anyone who wants to rent from them and sign a lease. These checks can tell a landlord a lot about a tenant’s ability to pay rent on time, which can be very important if the owner does not have a lot of cash on hand. The answers to the questions below about roommate screening can help you avoid people who could be trouble.
Table of Contents
Is a background check or a credit check required by the law?
Before running a tenant’s credit or background check, an owner must get permission first. This permission can be included in a Rental Application, which makes the process go faster. Most of the time, agencies need the following information from each person:
Full name.
Current address.
Number from the Social Security Administration or a voter identification number.
Also, renters may have the right to see the information you get from a background check or credit reporting service. The Federal Fair Credit Reporting Act says that you have to tell an applicant why you turned them down based on their credit report, as well as the name and address of the credit reporting service you used.
When can I start checking a tenant’s credit and background?
It is important to check out renters. If your Rental Application gives you permission to check a potential tenant’s credit and past, you can do so once the application is signed. You might want to wait, though, until you have looked at the rest of the application and made sure that the potential tenant meets all of your other requirements. For example, if you want a roommate to make twice as much as the monthly rent and they don’t, a credit check is not likely to change the decision.
When I look at a credit score, what am I looking for?
In a credit report, you can find out about a potential tenant’s past financial behavior. When you get your credit score, look for these problems:
Bankruptcy files.
Felonies or misdemeanors.
Especially evictions, which are civil cases.
Credit card, loan, and other bill payments that are late or not made at all.
You might also want to know how long the possible roommate has had a credit background. Better is two years or more. If you look back more than two years, you may also learn more about the tenant’s past and credit records. Keep in mind that you may not have to tell the renter all of this. If you turn down the renter because of their credit report, remember that the Federal Fair Credit Reporting Act says you have to tell them why and give them the name and address of the credit reporting service that did the check.
What can I do if a renter does not want to pay or gives me a bad report?
If a renter will not sign a Rental Application that lets you check their credit or background, or if they only will not let you check their credit or background, you might not want to rent to them. Landlords do not have to accept applicants who do not follow their application process. However, they may want to make sure their process is fair and treated all candidates the same.
If a tenant’s credit check or background check shows something bad, you may want to think about it carefully before making a choice. The information might be wrong, or there might be a good reason for it. Background checks can often show that a roommate has been convicted of a crime in the past that no longer fits with who they are now. You might be able to calm your worries by talking to the roommate about the bad things in these reports.
Is it against the law to refuse to rent to someone with a criminal record?
If a renter has a violent past, it may be against state or federal housing rules to not rent to them. State and federal laws, on the other hand, do not usually protect renters whose convictions were for making or selling drugs. If a potential renter has a criminal record that worries you, you might want to talk to a lawyer before turning them down because of that record.
Is it okay to ask for a certain income or credit score?
Yes, it is acceptable to check a tenant’s credit score and make sure they make a certain amount of money. If you do, it might be best to be honest about this in your ad and when you talk to potential renters. If you tell the potential tenant this information right away and make it clear, you will both save time.
