A tenant background check authorization form is a document landlords use to gather information before screening applicants for rental property leases. This form can provide valuable details to make your applicant search more efficient and successful.
When you provide the tenant background check form, tell the renter what checks you’ll run and how you’ll use the results. Please seek their explicit authorization to pull specific information, including credit reports, criminal records, rental history, and more. Furthermore, inform them they’ll be responsible for paying the fees associated with the background check.
Key Part of a Rental Application
A background check is an essential part of a rental application in which a prospective tenant provides information about themselves, such as their residence history, employment details, financial accounts, and personal references.
Having a tenant complete a rental application and background check authorization form can make your applicant search more efficient and successful.
How to Conduct a Tenant Background Check
Step 1 – Get Authorization
Distribute a background check authorization form to the prospective tenant. Ask them to fill it out, ensuring they grant explicit legal permission for you to conduct the background check. Request their payment for the background check when they return the form to you.
In addition to granting permission, the potential tenant should also provide their personal information. They can furnish details like their full name, date of birth, current address, and Social Security number as part of the larger rental application form. With this information, you can more easily conduct your research and perform a background check.
Step 2 – Run the Background Check
Once you acquire the necessary information, you can run the background check. For simplicity, consider using a third-party service geared toward landlords. Please ensure whichever company you choose complies with local and federal laws.
Look into the following service providers to find the one that’s right for your situation:
- MySmartMove: MySmartMove, which is an affiliate of TransUnion, offers pay-as-you-go tenant screening. You can choose from one of three screening packages, ranging from basic to comprehensive screening.
- RentPrep: RentPrep offers a $21 basic tenant background check with add-ons like Income Verification, Credit Decision Report, and Nationwide Criminal & Sex Offender Search.
- National Tenant Network: National Tenant Network offers greater freedom with choosing which reports to generate, as the reporting options are available a la carte style.
- RentRedi: RentRedi offers TransUnion-certified background checks for $39.99.
- RentSpree: RentSpree offers Standard ($39.99) and Premium ($49.99) tenant screening options.
Step 3 – Abide by Legal Requirements
Please abide by state and federal requirements when conducting background checks and using the results in your decision-making.
For example, the Fair Credit Reporting Act applies to tenant background checks. It specifically states that if you decide not to rent to the applicant based on the background check results, or you take a step like requiring a higher security deposit or increased rent because of what you find out on the background check, you must give the applicant notice (15 US Code § 1681m).
When evaluating applicants, focus on offenses that could impact the safety of other tenants or neighbors, such as violent or sexual crimes. Note that some states, like Ohio, have laws protecting landlords from liability when renting to registered sex offenders (Ohio Revised Code § 5321.051).
Step 4 – Make Your Decision
If you decide to rent to the tenant, draft a lease agreement containing the agreed-upon terms. If the credit report or background check results are unsatisfactory, provide the tenant with a rejection letter explaining the reasons for the denial. Ensure that the reasons you give aren’t discriminatory and comply with state requirements.
What Does a Rental Background Check Form Consist Of?
A rental background check form typically includes three key sections:
1. Applicant Information
This section requests the applicant’s personal details. You can use this information to conduct the background check. Request applicant details such as the following:
- Full name
- Contact information
- Address
- Social Security number
- Driver’s license number
- Other names/aliases
Refrain from asking about an applicant’s disability, race, color, religion, national origin, age, gender, marital status, sexual orientation, or familial status. These questions violate the Fair Housing Act and many state and local laws.
2. Disclosures
Inform the applicant about the types of records you will check and how you will use their personal information. This disclosure helps ensure transparency and can prevent complaints or legal issues. The areas you may disclose include:
- Financial information (e.g., bank and credit accounts)
- Consumer credit report
- Rental history
- Employment history and income
- Criminal background
- Legal history
3. Authorization
Obtain the applicant’s consent to conduct the background check. While some rental applications include a section for credit check authorization, it’s best practice to use a separate authorization form for clarity and legal reasons.
How to Write a Background Check Authorization Form
Step 1 – Obtain Information about the Person Giving Authorization
This section is for the person authorizing the background check to provide basic identifying information about themselves.
The person will enter their full name, address, contact information, date of birth, Social Security number, driver’s license information, and any other names or aliases used.
Step 2 – Note the Party Receiving Authorization
Write in the name of the person or entity receiving the authorization to conduct the background check.
Step 3 – State Purpose of Background Check
Write in the purpose of the background check, such as a tenant or employment screening.
Step 4 – Gather Signatures
The person giving the authorization must sign the background and credit check authorization form and provide the date of their signature.
Sample Background Check Authorization Form
Download a free tenant background check authorization form below in PDF or Word format:
Frequently Asked Questions
Can landlords ask about criminal records in California?
Landlords can ask about criminal records in California, but there are many restrictions governing the use of criminal background checks (California Civil Rights Department). The use of criminal background checks is limited to help minimize disparate effects on certain minority groups.
To comply with these restrictions, you should do the following:
- Do not use criminal background checks only for certain applicants. If landlords conduct criminal background checks, they should do so for all applicants. Using them only for members of certain racial or ethnic groups is illegal.
- Only consider criminal offenses related to whether the applicant would be a good tenant.
- Evaluate the context of a criminal offense, including mitigating circumstances and how long ago the crime occurred.
- Consider performing the criminal history check after performing financial background checks.
What background checks do most landlords use?
Most landlords use third-party services to perform background checks. Landlords commonly review credit reports and conduct public record searches to check for civil lawsuits and criminal history.
Some landlords perform interviews as part of their background checks. If you interview a prospective tenant, note that special rules may apply depending on your jurisdiction.
What other checks should I do on tenants?
A good tenant background check authorization permits you to do more than pull credit reports and run a criminal history check.
You can check several other things that may impact whether an applicant will be a good tenant, such as verifying employment. You can also ask for pay stubs, bank statements, and references, among other things.
