When you’re searching for an apartment or house to rent, a background check is the last thing on your mind. Landlords want reliable tenants they can count on to pay their rent on time, get along with other neighbors in a multi-unit building, and take care of the property in a suitable fashion. And landlords often rely on background checks as another tool to help determine what kind of tenant you’ll be and how you’ll treat the property if they accept your rental application. So what can you expect from a background check for an apartment? We’ll outline what you need to know.
Do you need a background check for an apartment?
The landlord’s job is to provide a safe and functional place for all tenants to live. Background checks help landlords gain a complete picture of a prospective tenant and identify any red flags to help avoid problematic tenants. While not all states require a background check, most landlords will order tenant background checks.
What does an apartment background check look like?
During a background check, landlords can check your rental and employment history, credit report, and criminal record. In doing so, there are strict guidelines they need to follow during the application process. The federal Department of Housing and Urban Development (HUD) lays out these guidelines in the Fair Housing Act. Additionally, each state may have different laws and rules on top of the HUD guidelines.
Rental history
Your rental history is an essential factor in determining whether or not your prospective landlord will approve your application. Your rental history could indicate positive or negative experiences any previous landlords or property managers had with your tenancy. The landlord will look for a rental history report that includes completed rental terms, timely monthly rent payments, courteous tenancy, and if the rental property was left in good condition.
Landlords typically ask for contact information for your previous landlords and property managers. This way they can ask questions about the terms of your lease or rental agreement, like if you stayed your entire term, if you were a good tenant, if you paid on time, if you were courteous to your neighbors and if you respected the property. If the landlord’s answers and your information line up, you’re well on your way to securing your next apartment and your landlord's respect.
If you don’t have a rental history, don’t worry. A lack of rental history doesn’t immediately disqualify you from having your application approved. Your landlord may ask you for character references from employers, friends, and family members.
Employment history
An employment history screening can help your landlord determine whether you are a high- or low-risk tenant. They’ll ask for information about your current and past employment. Suppose you have a less-than-stellar work history or have experienced an unexpected job loss. In those cases, your landlord will likely ask additional questions to determine the probability you will stay employed during your tenancy so you can keep up with rental payments.
If you have a history of changing jobs but have legitimate reasons and have maintained your rental payments throughout, be upfront with your potential landlord. By being open and honest about the employment red flags they may find during the background check, they will be more likely to consider you a trustworthy tenant.
Consider keeping your rental budget at or below 30% of your monthly income. Landlords often anticipate that you’ll follow this guideline. They will contact your employer to verify your income and employment history to determine you’re earning enough to meet that guideline, that you indeed work there, and you have worked there as long as you said you have.
Landlords prefer that you’ve worked for the same employer for at least six months. However, if you just found a new job, you can ask your employer for a letter of recommendation. If your potential landlords still have concerns, you could consider offering them a higher security deposit or offer to disclose how much money you have in a savings account to cover rent payments. You could also have a cosigner such as a parent, relative, or friend apply with you.
Credit history
Your credit history provides important insight your future landlord can use to determine how responsible and reliable you are when paying your bills. If your credit history shows timely payments and good credit usage patterns, you become a more attractive tenant because you fulfill your obligations.
However, if you’re racking up late fees and payments are often a month or two behind or even stop for extended periods, the landlord may ask you more questions about what happened during that time and for proof that the issues are resolved.
During a credit check, landlords typically look for a credit score of at least 600. The score and your payment history together will help the landlord determine whether to approve your rental application. If your credit score is really low and you’re working on improving your score – or you don’t have a credit score – the landlord may ask for a cosigner on your lease.
It is a good idea to check your credit score before you apply to rent an apartment. You can see where your score sits currently and fix any errors that may concern a landlord if they run a report.
Criminal history
Landlords are responsible for maintaining a safe environment in their apartment buildings. While they can’t police every unit, they can perform a thorough apartment background check, including any criminal charges. Criminal records can be a red flag, but doesn't necessarily disqualify a renter from finding a great apartment. Landlords are required to consider the charges, the date, and whether or not you were convicted of the alleged crime.
Sex offenders don’t have protection under the Fair Housing Act, so any landlord can decide not to rent an apartment to a registered sex offender and face no legal retribution. According to HUD, “A housing provider with a more tailored policy or practice that excludes individuals with only certain types of convictions must still prove that its policy is necessary to serve a ‘substantial, legitimate, nondiscriminatory interest.’ A housing provider must show that its policy accurately distinguishes between criminal conduct that indicates a demonstrable risk to resident safety or property and criminal conduct that does not."
In short, if a landlord makes a policy, they must stick to the policy and determine to deny tenancy on an applicant-by-applicant basis to protect the safety of other tenants. If they don’t have a specific policy, they must not use the criminal history as their basis for the approval or denial of the application. However, every potential tenant and landlord should speak with their lawyers if a tenant’s criminal history comes into question during a background check.
How long does a rental background check take?
Typically, landlords try to respond to your application within a week to 10 days. Credit score and a criminal background check can be processed within a couple of days. However, landlords may require up to a week to contact and verify information from rental and employment references during background checks.
How much does an apartment background check cost?
The cost of a rental background check can vary by state. If you think a fee is suspiciously high, check your state’s rental laws for specific limits. During the application process, it’s common to see landlords asking for $30–$200 to cover fees for background checks.
What happens if you have a bad apartment background check?
A negative background check can happen for any number of reasons. You could be in the process of improving your credit report, working to pay off debts, or have an eviction record or criminal history. All of these factors may raise red flags with your potential landlord and cause them to deny your application. However, being upfront about what may show up in your background check may be able to prove that you’re on the right track and likely to be a reliable tenant.
4 options to overcome a bad background check
There are a few options to look into if you do have a poor background check.
1) Know your rights
Check your credit report for false or incorrect information. Consumer credit reporting agencies cannot report outdated negative information during a credit check. For example, a credit report is outdated if it involves negative records more than seven years old. Note that a bankruptcy will stay on your record for ten years.
Landlords must explain why they reject an application with a written, oral, or electronic notice. If you request a copy of your credit report, you should be able to get it (at no charge) within 60 days of the landlord's rejection. If there is any false information, the report should explain how to correct inaccurate information. The Fair Credit Reporting Act stipulates that the landlord must give applicants the contact information for the credit reporting company.
Landlords might be in violation of the Fair Housing Act if they have a blanket policy of refusing to rent to anyone with a criminal record. A policy like this would likely be considered arbitrary and too broad. A landlord must prove any policy that excludes applicants with certain conviction types is necessary to serve a “substantial, legitimate, nondiscriminatory interest.”
2) Search for rental homes or smaller apartment complexes
If you’re having trouble being approved for tenancy in a larger apartment complex, it might be better to look for vacancies for single-family homes, duplexes, or smaller apartment buildings. These properties are usually managed by a landlord who might be more flexible and willing to talk to you about your situation. These landlords are also typically the building owners and do all of the management themselves. They determine the tenant background check requirements and may be willing to consider applicants rejected by a corporate property manager with stricter guidelines.
Most large apartment complexes are controlled by property managers who serve as the go-between for renters and owners. Management companies have a corporate office that determines the lease agreements, rent, security deposit, and application fees. Larger complexes may have strict guidelines they must follow and be less likely to work through if issues show up on a background check.
3) Have contact information for referrals readily available and make a good impression
If you have issues from your past that result in a negative background check, perhaps you have friends and family members willing to help you by writing a letter of recommendation or possibly cosigning on your application to help you acquire tenancy. If you were incarcerated and are working through a reentry program, your parole officer might be able to help you with a letter of recommendation.
4) Consider a cosigner
A landlord might be more willing to take a chance on you if you can find someone with a stronger background to cosign your lease. A cosigner should be someone with a track record of behaving responsibly and, ideally, someone with good credit. Your cosigner will be on the hook to pay the rent on your behalf if you can’t make your rent payments.
Consider asking close friends, family, or another trusted advisor who might have the resources to help you out if you end up in an unexpected bind. If money is not the problem, you could offer to pay a larger security deposit, higher rent, or pay an additional amount to be held in escrow for future rent payments.
Final takeaways
Apartment background checks are a necessary part of the rental process. They help landlords determine the character of their tenants to ensure everyone’s safety and protect the building’s income stream by renting to tenants who have a reliable rent payment history. While each landlord can decide what to cover on the background checks, they must comply with HUD and Fair Credit Reporting Act requirements, along with any local laws that regulate what information they can use to approve or deny tenancy. Ultimately, it’s likely best to be honest and upfront about any shortcomings a landlord may find.
Redfin does not provide legal, tax, or financial advice. This article is for informational purposes only and is not a substitute for professional advice from a licensed attorney, tax professional, or financial advisor.
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