According to NCSL.org, one in three U.S. adults, or 77 million Americans, have a criminal record.
The above statistic may be especially alarming for Greater Philadelphia landlords and property managers. For this reason, it's imperative to ensure you're making informed leasing decisions for the safety and security of your investment and your tenants. Running a tenant criminal background check is a crucial step in this process.
To that end, our team at Property Management International Greater Philadelphia put together this guide sharing insights into the tenant screening process. Read on to discover the best practices for conducting these checks legally and effectively.
Tenant Criminal Background Check: Understanding the Basics
A tenant criminal background check typically involves reviewing applicants' criminal histories to help you assess their suitability as tenants. It can include a variety of elements:
- Felony and misdemeanor records
- Arrest history
- Sex offender registries
Conducting this type of background check is not just about settling on the right tenants; it also plays a crucial role in adhering to legal obligations.
Legal Considerations in Greater Philadelphia
Before conducting a tenant criminal background check, it's vital to understand the legal boundaries, including the Fair Credit Reporting Act (FCRA) for landlords. The FCRA governs the steps for performing legal background checks.
Here are the critical tenant verification steps to take and key points to remember:
- Get permission: Always obtain written consent from the applicant before running a background check
- Be transparent: Inform the applicant of their rights under the FCRA
- Use reputable tenant check services: Ensure the company you choose complies with all legal regulations
Choosing a Background Check Service
When selecting a background check service, consider their reputation and reviews. Opt for services with a solid track record and positive feedback from other landlords or property managers. Ensure the service covers all necessary areas pertinent to your needs, too.
For a hassle-free, more streamlined process, consider using a reliable full-service property management firm. Not only will they screen renters for you. They'll also manage your tenants and property on your behalf.
How to Interpret Background Check Results
Once you receive the results, interpret them carefully. Here are some essential aspects to consider:
- Type of offenses: Certain types of criminal activity may be more concerning than others (e.g., violent crimes)
- Time since offense: Understand how long ago the offense occurred; a long time without further incidents may indicate rehabilitation
- Circumstances surrounding the offense: Context can matter; consider discussing with the applicant if there are issues worth noting
Careful consideration can help you make better leasing decisions while staying compliant with all regulations.
Taking the Next Steps
Running a tenant criminal background check is more than a precaution. It's an investment in a safer and more secure rental property environment. By understanding the legalities, choosing solid services, and interpreting your findings wisely, you place yourself in a strong position as a landlord.
If you need expert assistance, look no further than our full-service property management solutions, Property Management International Greater Philadelphia. Our owners, Christopher and Melissa Simmons, are veteran investors who began their real estate investment journey in 2008. They'll use their expertise and skills to help manage your properties and make them more profitable.
Call us today for a free consultation!
