How To Run A Background Check on Tenants in 2023

If you are a landlord who is looking to qualify a potential tenant, getting a detailed tenant background report on your applicants is a necessary.

In this post, we’ll explore the best background check services that are permitted for FCRA screening purposes, and outline legal requirements you need to be aware of before running a tenant background check.

Step 1: Get written consent from tenants

The Fair Credit Reporting Act requires landlords to obtain written consent from the tenant before running a background check on them. So if you’re in the process of qualifying a potential tenant, make sure you get written consent from them.

Additionally, be aware that some states may have additional requirements for tenant background checks. If you are uncertain about the process, it is advisable to seek guidance from an attorney or relevant legal authority.

Step 2: Get necessary information

To get a full picture of a prospective tenant, you’ll need to collect the necessary information on them.

The first step is to have a comprehensive rental application that includes the tenant’s full name, date of birth, social security number, contact information, occupants, previous addresses with landlord references, employer references, banking and credit references, vehicle information and driver’s license or government-issued picture ID.

In addition, request proof of income such as pay stubs, bank statements, or a Wage and Tax Statement, along with a copy of their ID.

Step 3: Choose a tenant screening service

Tenant screening services are designed to help landlords in making the best decision for their property. It provides valuable insights into prospective tenants, including their history of late rental payments, eviction within seven years, and sometimes, the tenant’s personal loans – so you can identify a good tenant and get rid of a bad one.

After reviewing various tenant screening services, we have identified the top options:

SmartMove

SmartMove is a reliable tenant screening service backed by TransUnion – one of the three main credit bureaus. It searches 44 state criminal records from both state and national databases. Additionally, it offers credit, background, and eviction reports.

You can set up a SmartMove account for free and only pay for the reports you order. SmartMove has three payment tiers:

• SmartCheck Basic — $24.99 per screening including Credit-Based ResidentScore® and National Criminal Background Report
• SmartCheck Plus — $39.99 per screening including everything in the Basic plan plus the Full Credit Report and the National Eviction Report.
• SmartCheck Premium — $42.99 per screening including everything in the Plus plan, and the Income Insights Report

Read More: SmartMove Trustpilot reviews

TurboTenant

TurboTenant is a decent screening service that aims to make rental easy. It allows you to screen tenants, market your rental, receive applications, sign leases and collect rent online.

A tenant background check report with TurboTenant provides information such as credit history, criminal  credit history, criminal history, and eviction reports.

The screening fee is $55 for the Free Turbotenant account. If you’re a Premium landlord, it costs $45 per screening. You can pay the screening fee yourself, but TurboTenant also lets you pass the cost on to the tenant.

Read More: TurboTenant customer reviews

First Advantage

First Advantage is an FCRA-compliant resident screening service that has been around since 2003. Owning to its extensive database and regularly updated public sources, it’s able to deliver comprehensive background checks that include the applicant’s criminal records, rental histories, landlords, utility debt histories and more.

When you submit the request for a tenant screening report, First Advantage searches through millions of criminal records. If it requires additional information about the tenant, it reaches out to the tenant manually, sparing you the hassle of communicating back and forth.

Apart from being the largest screening service, First Advantage is also fast. Most results come back in less than 24 hours.

Read More: First Advantage Trustpilot reviews

RentPrep

RentPrep is a comprehensive tenant screening solution that helps you find qualified tenants. It searches someone’s full credit history, nationwide eviction history, judgments and liens, bankruptcies, and national criminal and sex offender records.

RentPrep’s works with applicants directly to verify information, requiring minimal effort on your part. Most reports are available within one hour of ordering, depending on the tenant’s response time.

Step 4: Run a credit check

If the tenant screening service you opt for doesn’t include a credit check, you can request a credit report on the tenant from the three major credit reporting bureaus – Equifax, TransUnion and Experian.

A credit report allows you to identify tenants who are financially stable and reliable. This can also help you find the tenant’s other possible addresses, out of state evictions and major credit issues.

Step 5: Verify references

Another precaution you want to take to gain further confidence in your tenant selection is calling the applicant’s references, especially their previous landlords if the applicant has a rental history.

Reach out to their former landlords and other references to inquire about the applicant’s behavior, rent history, rent payment history, any property damage, complaints, or lease violations.

Asking questions like “Did they pay the rent on time?” or “Were there any issues during their tenancy?” will provide valuable insights.

Step 6: Check social media

It’s possible that someone may have a glowing recommendation but only to be found later that the reality doesn’t match the reference.

If you wish to dig a little bit deeper, consider checking their social media profiles and public posts to learn more information about the applicants. This can turn up a bunch of information that may not be evident from other sources and provides more insights on who you’re going to rent your property to.

FAQs

The methods in this article provide you with easy access to public record information, but without a guarantee for accuracy and may include links to websites not listed as a Consumer Reporting Agency (CRA). Information acquired from these bodies is illegal to be used for employment, housing, credit, and other purposes alike, according to laws such as the Fair Credit Reporting Act (FCRA). If you’re not sure whether your use of our methods is appropriate, click here for details.

By Ellie Zhuang

Ellie has been writing about technology since 2019. Her early passion for adventure novels, games, and videos fueled a deep curiosity for solving real-world puzzles.

Writing gives her a chance to nourish this curiosity, allowing her to delve deep into the vast depths of the internet, emerging with treasure troves of information and then sharing her findings with people who need the information to solve their everyday challenges.

Her innate problem-solving nature keeps her on a perpetual quest for tech solutions, online shopping tips, and life hacks that sprinkle a bit of magic into our daily routines. At Super Easy, she has been crafting how-tos, guides, and product roundups, making both our professional and personal lives a whole lot simpler.

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When she's not weaving words, you'll find her enjoying sitcom marathons, exploring virtual reality adventures on her Quest 2, and unleashing her culinary creativity in the kitchen. It's all part of her quest to make life more enjoyable, both on and offline.

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