Nonpayment of rent is a top concern for landlords, especially when the bulk of Americans can’t afford to pay rent. And factors like job loss, high costs due to inflation, and more are some valid reasons for rent arrears.
However, another vital issue is the tenant’s criminal background, which helps landlords assess a tenant’s risks. Because some states or counties want to limit criminal background checks by property managers, implementing them properly is key.
Here are some practical ways to do it right to protect your property and the surrounding community without violating privacy or legal standards.
Use a Reliable Screening Platform
The first step is choosing the right tool. Many property managers rely on third-party screening platforms that automate the background check process. Choose a platform that provides accurate data and complies with local and federal laws.
Platforms like Autohost offer automation that screens potential tenants while keeping everything above board, saving time and minimizing human error.
Instead of just plugging in a tenant’s name and social security number into a database, Autohost aggregates information from various sources and presents it in a clear, actionable way. This means you can quickly determine if an applicant has a criminal record that could pose a risk to your property.
So opt for platforms that handle compliance with the Fair Housing Act (FHA) and Fair Credit Reporting Act (FCRA) as well to protect yourself from legal liabilities.
Customize Your Screening Criteria
One-size-fits-all screening doesn’t work when it comes to tenant background checks. What might be considered a dealbreaker for one property manager may be acceptable for another. This depends on the nature of the property, local laws, and the potential for rehabilitation in an applicant’s history.
For example, a felony related to violence or property damage might be a valid reason for rejecting an applicant. But what about older misdemeanors or charges unrelated to property safety? If you’re not tailoring your screening process, you may leave yourself open to both legal trouble and poor tenant experiences.
When customizing your criteria, ask these questions:
- Does this offense directly affect the safety of other tenants or property?
- How long ago did the offense occur?
- Has the applicant shown signs of rehabilitation?
- How does this offense align with state and local laws regarding tenant screening?
Be sure to balance tenant safety with fairness, ensuring you’re not unnecessarily turning away potential renters who don’t pose a real threat.
Understand Local and State Laws
Federal regulations like the FCRA lay out broad rules, but local laws often impose additional restrictions. For example, some cities have “ban-the-box” laws that prohibit asking about criminal history on rental applications. In other areas, property managers may only be allowed to consider convictions, not arrests. Ignorance of these laws can lead to lawsuits, fines, and reputational damage.
Keep in mind that legal guidance is often necessary to navigate these varied regulations. Whether it’s understanding when you can legally perform a background check or knowing how to handle sensitive information, legal expertise should inform your approach. Make it a habit to review your process regularly, as laws and regulations are prone to change.
Maintain Consistency
Consistency in how you apply background checks is critical. Without it, you open yourself up to accusations of discrimination. Make sure that every potential tenant undergoes the same process and that the criteria for denying a tenant based on criminal history are applied uniformly across all applicants.
A common issue for property managers is being too lenient with some tenants while being overly strict with others. You don’t want to make decisions based on gut feelings or first impressions; this is where having clear criteria on background checks comes into play again. Once your criteria are set, apply them consistently, regardless of any personal connection to the applicant or other influencing factors.
This doesn’t mean you shouldn’t give applicants a chance to explain themselves. In fact, many property managers have found success in offering an opportunity for applicants to provide context for their criminal history.
However, the decision-making process should be the same for everyone. Keep written records of each applicant’s background check results and the reasons for approval or denial, ensuring transparency and accountability.
Timing Is Everything
It’s tempting to run a background check as soon as possible, but this can be counterproductive in some cases. If you conduct the background check too early, you risk rejecting a tenant before even considering their other qualifications. This can lead to discriminatory practices.
Also, if you wait too long, you could waste time on an applicant who would never pass your background screening.
The ideal time to run a background check is after initial screening steps—such as income verification and credit check—but before the lease is signed. This ensures you only run checks on applicants who can qualify, minimizing unnecessary expense and effort.
Evaluate Criminal Records Fairly
All criminal records aren’t created equal. As a property manager, you need to be discerning about what types of criminal activity are disqualifying. For example, a non-violent drug offense from 10 years ago might not be a reason to deny an applicant today, especially if the individual has since reformed and has no recent offenses.
That said, there are certain offenses that you may consider disqualifying no matter how much time has passed, such as:
- Violent crimes (assault, battery, domestic violence)
- Sexual offenses
- Crimes related to property damage or theft
- Fraud or financial crimes that could indicate a risk to other tenants
Again, your local laws may dictate how you handle various types of offenses, so ensure that your criteria align with legal requirements. Assess the severity and recency of an offense and consider whether the applicant has taken steps to rehabilitate.
Giving weight to these factors allows you to make fairer, more informed decisions.
Communicate Clearly With Applicants
When denying an applicant based on criminal background, you need to be transparent. Under the FCRA, applicants are entitled to a copy of their background check and the chance to dispute any inaccuracies. Provide clear reasons for the denial, outlining how their criminal history doesn’t meet your rental criteria.
This process doesn’t just protect you legally—it also demonstrates fairness and professionalism. Applicants who understand why they were denied are less likely to accuse you of discrimination or unfair practices. Also, clear communication reinforces trust with applicants even when the outcome isn’t what they hoped for.
Handle Background Check Data Securely
Security is often overlooked in the background check process. Criminal background checks involve sensitive information that needs to be handled carefully. Once you have an applicant’s data, it’s your responsibility to store it securely and ensure it’s only accessed by authorized personnel. Failure to do so could result in legal consequences and a loss of trust among applicants and tenants.
Be sure that you’re using encryption, secure storage systems, and proper protocols for disposing of this data once it’s no longer needed. Remember that this sensitive information is not just about avoiding identity theft—it’s about respecting the privacy of every applicant.
Final Thoughts
Handling criminal background checks for apartment rentals requires more than just running a report and making snap judgments. It’s about implementing a thoughtful, legally compliant process that ensures safety without unfairly penalizing applicants for their past.
By using the right tools, staying consistent, and customizing your screening criteria, property managers can protect their properties while maintaining fair and professional relationships with tenants.