A tenant background check form is a document landlords use to gather information before screening applicants for rental property leases.
When providing the tenant background check form, tell the potential renter what checks you will run and how to use the results. Your investigation can provide valuable details to make your applicant search more efficient and successful.
Most landlords use third-party services to perform background checks. Landlords commonly review credit reports, conduct a public record search to check for civil lawsuits and check 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 Does a Rental Background Check Form Consist Of?
A rental background check form template typically contains three essential parts:
1. Applicant Information
Requesting the applicant’s personal information helps you conduct your search. The applicant should give you details, such as name, contact information, social security number, and driver’s license number.
Do not ask about 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 that you will use their personal information on the background check form to obtain and check records concerning many areas of their background.
These may include information such as:
- Financial information, such as bank and credit accounts
- Consumer credit report
- Rental history
- Employment history and income
- Criminal background
- Legal history
Disclosing the types of records you will check and how you will use them may prevent complaints or legal action if you decide not to rent to an applicant based on information obtained during the background check.
3. Authorization
Finally, get the applicant’s permission to conduct the background check.
An application to lease a rental property sometimes contains authorization to run a credit check. However, getting the tenant’s permission in a separate authorization form is a good idea for many reasons.
How to Conduct a Tenant Background Check
Once you have a completed and signed authorization form, it is time to run the background check. Most landlords use the services of a third party to conduct the examination.
IMPORTANT
Note that the federal Fair Credit Reporting Act applies to tenant background checks.
Landlords who use a third-party company should ensure the company complies with state and federal laws.
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, the FCRA requires you to give the applicant notice.[lt_source=”1″]
Before rejecting an applicant based on criminal history, check federal, state, and local laws limiting what types of criminal record you may consider denying housing, such as the federal Fair Housing Act and California’s Fair Employment and Housing Act.
When evaluating applicants, focus on crimes that may impact the safety of other tenants or neighbors, like violent sexual offenses. But note that many states have legislation like Ohio Revised Code 5321.051 that exempts landlords from liability for renting to registered sex offenders.
How to Write a Background Check Authorization Form
Follow the steps below to write a background 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 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.