The Step-by-Step Guide to Running Tenant Background Checks

A vacant unit costs you rent. A bad tenant costs you rent, repairs, legal fees, and sleep. An eviction runs $3,000–$8,000 when you add legal fees, lost rent, and turnover. A tenant who pays late and trashes the place? Even worse. The difference between a few weeks empty and a year of headaches is a solid tenant screening process. Here's how to run background checks that actually protect your cash flow—without breaking the law or wasting time.

Credit Check: What Score Threshold?

Most landlords use 620 or higher. Some tighten to 650. Below 600, the eviction rate jumps—roughly three times higher than tenants above 620. So 620 is a reasonable floor. You'll consider 600–619 if income is strong and rental history is clean. Below 600, pass.

One exception: medical debt. Collections from hospitals and medical bills don't predict tenant behavior the way credit card defaults do. If everything else looks good and the only blemish is medical, you can ignore it. Life happens.

Pull credit from all three bureaus when possible. A single-bureau report can miss accounts. TransUnion SmartMove, RentPrep, and Avail all offer multi-bureau options.

What are you actually looking for? Payment history matters more than the score itself. Someone with a 640 who's never missed a rent payment might be a better bet than a 680 with a pattern of late pays. Collections and bankruptcies matter—especially recent ones. A Chapter 7 from five years ago with a clean record since? Context. A Chapter 7 from six months ago? Red flag. The score is a starting point. The details tell the story.

Criminal Background: What Disqualifies?

Recent violent crimes, drug manufacturing or distribution, and sex offenses—those are automatic passes for most landlords. You're protecting your property and your other tenants. One bad actor can cost thousands.

What doesn't automatically disqualify: old misdemeanors, traffic violations, minor drug possession from years ago. Context matters. A DUI from 2012 is different from a domestic violence conviction from last year. Some states have "ban-the-box" laws that limit when you can ask about or use criminal history. Check your local rules.

HUD has said that blanket bans on anyone with a criminal record can have a disparate impact on protected groups. The safer approach: individualized assessment. Look at the offense, how long ago it was, and whether it relates to tenancy. When in doubt, talk to a lawyer.

Eviction History: The Five-Year Rule

Any eviction in the past five years is a red flag. Court records, unlawful detainer filings, and judgments all show up in screening reports. Tenants who've been evicted once are more likely to be evicted again. It's not a perfect predictor, but it's one of the strongest.

Screening services like TransUnion SmartMove and RentPrep pull eviction data from national databases. Don't skip this step. A tenant who left their last place "on bad terms" might be understating an eviction.

Eviction records can show up as court filings, judgments, or settlements. Some tenants "move out before the sheriff"—technically no eviction on record, but they left owing money. That's why landlord references matter. A prior landlord can tell you what the court record might not.

Income Verification: 3x Rent Minimum

Gross monthly income must be at least three times the rent. A $1,400 unit requires $4,200 a month. Pay stubs get you started—but they're not enough. Fake pay stubs are common. You need to verify.

Call the employer. Confirm job title, tenure, and income. For self-employed applicants, ask for six months of bank statements and tax returns. Gig workers? Same. You need to see the money. No verification, no lease.

Some landlords use 2.5x or 3.5x depending on the market. In high-cost areas, 3x might exclude too many qualified applicants. In cash-flow markets, 3.5x gives you more cushion. Pick a standard and apply it to everyone. Document it. That's Fair Housing compliance and good risk management.

Employment Verification: Call Directly

Don't rely on a letter from the applicant's "employer." Call the number yourself. Look up the company. Make sure it's real. Confirm the person works there and for how long.

A five-minute phone call has caught more than one applicant who invented a job. It's worth the time.

One more thing: verify the employer is real. Look up the company. Call the main line, not a number the applicant gave you. Fake employers and fake pay stubs are a cottage industry. A quick Google and a direct call to the company's published number will catch most of them.

Landlord Reference: The Questions That Matter

Call every landlord from the past three years. Ask: Did they pay on time? Did they get their deposit back? Would you rent to them again?

A "no" to that last question is an automatic pass. We've rejected applicants with 720 credit scores because their last landlord said they were a nightmare. Rental history beats credit every time. The Tenant Screening guide goes deeper on building a repeatable process.

Legal Requirements: FCRA and Fair Housing

When you deny based on a credit or criminal report, the Fair Credit Reporting Act requires an adverse action notice. In writing. It must tell the applicant they were denied, why (based on the report), and that they have the right to dispute and get a free copy of the report. Screening services often provide template letters. Use them.

Fair Housing means your criteria apply to everyone. Same credit minimum. Same income rule. Same questions. No exceptions based on race, religion, family status, or any protected class. Document your process. If you're ever accused of discrimination, consistent criteria are your best defense.

The adverse action notice isn't optional. If you deny someone based on something in a credit or background report, you must send a written notice within a reasonable time. It has to include the name of the reporting agency, the applicant's right to get a free copy of the report, and their right to dispute. Screening services provide templates. Use them. Skipping this step can turn a legitimate denial into an FCRA violation—and those come with statutory damages.

Cost and Services

Background checks run $25–50 per applicant. Most landlords charge the applicant. TransUnion SmartMove ($25–48), RentPrep ($29–49), and Avail (free for you, tenant pays ~$35) all compile credit, criminal, and eviction reports. They handle FCRA compliance and adverse action templates. Worth it.

The Bottom Line

Run credit (620+), criminal, and eviction checks. Verify income and employment. Call every landlord. Apply the same criteria to everyone. Send adverse action notices when you deny. A few weeks of vacancy costs less than a bad tenant. Screen everyone. Even when you're desperate.