Navigating the Conundrum Surrounding Tenant Background Checks

Tenant background checks have always been a fixture of the rental process, but the landscape has become murky and complex. At a time when some municipalities have acted to ban such vetting outright, many landlords nationwide still don’t know what to expect. Property owners may wonder if the potential hassle is worthwhile even in areas where such vetting remains legal.

Understanding the short- and long-term value of these checks begins unraveling the enigma. Remaining actively engaged in changes around the process can also help. Here’s what landlords should know now. 

The Immediate Value of Background Checks Remains 

The importance and utility of background checks have not changed. They remain an excellent tool to use as part of your overall strategy for risk management. As a landlord, the goal is deceptively simple: select tenants who can pay their bills, safeguard the property and live agreeably with neighbors. A background and credit check for tenants provide landlords with critical information about all these elements. 

Although property owners cannot predict the future, these reports may provide vital warnings. In Tacoma, a man living in subsidized housing injured an infant by shooting into his neighbor’s apartment. Investigations revealed the man had prior convictions for firearm possession and robbery but was granted housing vouchers nonetheless. Stories such as these highlight the importance of thorough vetting and carefully considering tenant suitability. 

Long-Term Benefits to Consider 

The Tacoma story highlights an important reality: showing a thorough background check history can protect landlords from negligence claims. A background check isn’t just for the landlord or their community; it’s also an essential way of illustrating that fully informed choices were made. Vetting diligence demonstrates that landlords satisfy their duty to the public to protect existing tenants from potentially dangerous individuals. 

The Shifting Sands of Criminal Background Check Legislation 

Despite the importance of these steps, many reform advocates say that real estate background check requirements create an unfair and unequal barrier to housing. They further claim that this increases recidivism and exacerbates the housing shortage. The data support these claims to some extent—but some communities have decided to move towards banning or restricting tenant screening as a response. 

From California to Colorado to New York and Maine, background checks used by landlords are in the spotlight. Some places in California have entirely banned these checks. Others continue to consider ways to restrict screening, potentially increasing the level of risk landlords face—and possibly driving them from the market altogether. 

For landlords, advocacy is always an option. In Colorado and Maine, local legislation to curtail tenant background checks faced stiff opposition from local groups. As a result, a compromise was reached—preserving the right to use background checks while creating some reasonable guardrails to protect tenant rights.  

Looking Forward 

While expanding access to housing is a necessary and noble goal, it will be crucial to continue considering how to do so while maintaining safe neighborhoods. The debate over the efficacy and suitability of tenant background checks is just beginning. Landlords should strive to remain aware of any potential changes in their local laws and consider the opportunity to add their voices to the conversation. 

As seen above, tenant background screening laws are a rapidly growing burden. Hence, effective September 2024, we discontinued tenant and related credit screening services. We will continue to focus on improving and delivering resources in our other core business areas.