What Do Landlords Look For In A Background Check?
Tenants often have many questions when it comes to renting, especially if it is their first time. The moment a word like “background check” is mentioned, they may start to wonder what exactly is going on. What do landlords look for in a background check? What kind of personal information are they getting? What kind of employment information are they getting? There are a lot of valid questions.
As one of the central Atlanta property management solutions in the area, we understand that conducting background checks is both necessary, but also a delicate situation. Tenants have a right to privacy, while landlords have a right to make reasonable queries regarding whether their renters have the means to become reliable long-term tenants. So comes in the background check. Let’s dive into what they are and what tenants can expect when renting.
Table of Contents
- What Do Landlords Look For In A Background Check?
- Red Flags Landlords Look For
- FAQs
- For Landlords: Consider Professional Property Management
What Do Landlords Look For In A Background Check?
Knowing what a background check entails is foundational to knowing what tenants can expect when they are seeking to rent. There are a lot of misconceptions. While there are some small differences depending on the services a landlord uses and the geographical region it is being done, there are a lot of commonalities as well. So what do landlords look for in a background check? Here are the most likely parts of a background check that you can expect.
Credit History
Landlords review an applicant’s credit history. The general goal is to assess their financial responsibility. A good credit score indicates that the tenant pays their bills on time and manages their debts well. This helps landlords predict whether the tenant will reliably pay rent each month. They look for any red flags (see below).
Rental History
Checking an applicant’s rental history helps landlords understand their past behavior as a tenant. They can contact previous landlords to inquire about the tenant’s reliability, cleanliness, and whether they caused any damage to the property. A positive rental history with good references can boost an applicant’s chances of being approved.
Criminal Background
Landlords conduct criminal background checks to ensure the safety and security of their property and other tenants. They look for any history of criminal activity, especially violent crimes or drug-related offenses. While minor infractions might not be a deal-breaker, serious criminal records can lead to an application being denied.
Employment Verification
Verifying an applicant’s employment status and income is crucial for landlords to ensure that the tenant can afford the rent. They typically require proof of income, such as pay stubs or bank statements, and may contact the employer to confirm job stability. A steady job and sufficient income reassure landlords that the tenants will be able to meet their financial obligations.
Eviction History
An eviction history check reveals whether the applicant has been evicted from a previous rental property. Landlords are wary of tenants with past evictions as it indicates potential issues with paying rent or adhering to lease agreements. A clean eviction record is a positive sign that the tenant is likely to be responsible and reliable.
Personal References
Personal references provide additional insights into an applicant’s character and reliability. Landlords may ask for references from friends, colleagues, or community members who can vouch for the tenant’s behavior and trustworthiness. Positive references can help strengthen an application, especially if other areas are borderline.
Red Flags Landlords Look For
So what are the red flags that landlords are looking for? Not only what do landlords look for in a background check, but what are the things that jump out at them when they are looking at those reports? It sure would help tenants to know that so that they know what might come up that they may need to worry about. Here are some of the most common speed bumps that may arise.
Poor Credit History
A low credit score or a history of late payments, high debt, or bankruptcies can be a major red flag. It suggests that the applicant may struggle to pay rent on time, which would be a big concern for landlords.
Previous Evictions
If a potential applicant has been evicted from a previous rental property, it raises concerns about their reliability and ability to adhere to lease agreements. Multiple evictions are particularly alarming and can lead to an automatic denial.
Criminal Record
A history of criminal activity is often part of a background check. There are laws and regulations regarding what is in those and what can be used in regard to rental property decisions. If you think this will be a concern, there are state-based questions and answers you may have, so investigating in your local region (such as Georgia) can help you understand the criminal record component of a background check. Landlords want to ensure the safety of their property and other tenants, so a criminal record – particularly if it is in regards to violence, theft, or drugs – could become a factor.
Unstable Employment History
Frequent job changes or periods of unemployment can indicate financial instability. Landlords and property managers prefer tenants with a steady income and stable employment to make sure they can consistently pay rent.
FAQs
Apart from what we have already gone over, it would be helpful to go over a number of frequently asked questions that tenants have when it comes to background checks. If you’re asking what do landlords look for in a background check, you are also likely asking a number of other similar questions. Here are some answers.
How long does a background check take?
While it can vary some, usually it does not take more than a few days. You can ask the landlord or property manager.
How far back do apartment background checks go?
When financial records are pulled as part of a background check, they typically go 7-10 years in the past.
How much does a background check cost?
When you apply for a rental property like an apartment, you will pay an application fee. That includes enough to conduct this background check. The amount is often around $30-$80. There are websites like Apartments.com in which you can pay a certain fee and be able to apply to a number of participating rentals, essentially avoiding application fees for each individual property.
Do all apartments do background checks?
Most rental properties conduct some kind of background check. It can vary which of the above components they may require.
What are my rights when it comes to background checks?
If a landlord rejects your application, it is in your rights to be provided a notice explaining why you were denied, contact information for the company that provided the report, an explanation on how to correct inaccurate information, and how to get a free copy of the report.
For more information about your rights, you can refer to the Fair Credit Reporting Act and your local tenant-landlord handbook, like this Georgia Landlord-Tenant Handbook.
For Landlords: Consider Professional Property Management
If you’re a renter you may have questions like what do landlords look for in a background check… but if you’re a landlord, you may have different questions altogether. If you’re a landlord, you also know how tricky it can be to find the ideal tenant. Maneuvering rental applications is just a part of it. If you find it difficult to screen potential tenants for your rentals, don’t worry. The professionals at Bay Property Management Group are here to help.
With our team of qualified professionals, landlords don’t have to worry about the day-to-day tasks of owning a rental. Our comprehensive Atlanta GA property management services cover it all. Contact Bay Property Management Group today if you need rental management in Atlanta, Baltimore, Philadelphia, Boston, and elsewhere.
