How to Run a Tenant Background Check

a person holding a bunch of keys in their hand
a person holding a bunch of keys in their hand

How to Properly Screen Tenants with a Background Check

Renting out a property is exciting — but before you hand over the keys, you need to be confident about who’s moving in. A thorough tenant background check helps protect your property, your income, and your peace of mind.

Why Background Checks Matter

Tenant background checks reduce the risk of late payments, property damage, and costly evictions. They also give you a clear picture of an applicant’s rental history and financial responsibility. More importantly, they help ensure you’re placing tenants who will treat your property with respect.

Helpful Resource: U.S. Department of Housing and Urban Development – Tenant Rights & Fair Housing

Step 1: Set Clear Screening Criteria

Before you list your property, decide what makes a qualified tenant. Keep your criteria consistent and non-discriminatory to stay compliant with the Fair Housing Act. Typical factors include:

  • Income requirement: Many landlords use the “3x rent rule” (income should be at least three times the monthly rent).

  • Credit history: Decide your minimum acceptable credit score.

  • Rental history: Look for past evictions, frequent moves, or unpaid rent.

  • Criminal background: Define which issues are relevant to tenancy (violent or property crimes, for example).

  • Pet policy: Clarify upfront if pets are allowed, and under what conditions.

Resource: California Tenants – A Guide to Residential Tenants’ and Landlords’ Rights and Responsibilities

Step 2: Pre-Screen with Listings and Applications

Your listing should clearly state requirements (income, pets, etc.) to discourage unqualified applicants. Use a detailed rental application that collects:

  • Employment history

  • Current and past addresses

  • References (landlords, employers)

  • Contact details

Free tool: Nolo – Free Rental Application Template

Step 3: Obtain Written Consent

You must have written permission before running credit, criminal, or eviction checks. This isn’t optional — it’s the law. A signed consent form protects both you and the applicant.

Tip: The Federal Trade Commission (FTC) outlines landlord obligations under the Fair Credit Reporting Act (FCRA).

Step 4: Run a Credit & Background Check

Use a trusted screening service to review credit, eviction, and criminal history. Popular platforms include:

  • TransUnion SmartMove

  • RentPrep

  • Experian Connect

These services are fast, secure, and provide the insight you need to make an informed choice.

Step 5: Verify Employment & Income

Check pay stubs, W-2s, or bank statements. With permission, contact employers to confirm job title, income, and length of employment. For self-employed applicants, request recent tax returns.

Step 6: Confirm Rental History

Call at least two previous landlords. Ask:

  • Did the tenant pay on time?

  • Did they maintain the unit responsibly?

  • Would you rent to them again?

Pro Tip: Contact prior landlords — not just the current one — to avoid biased answers.

Step 7: Make a Fair, Consistent Decision

Once all information is gathered, compare it against your screening criteria. Always apply the same standards to every applicant to avoid discrimination claims under the Fair Housing Act.

Beyond the Background Check

Screening is only the first step in successful property management. Ongoing rent collection, maintenance, and compliance with landlord-tenant laws are just as critical. Many landlords choose to partner with property management companies to streamline these responsibilities.