What Is Criminal History Check?
A criminal history check is one piece of tenant screening. It pulls felony and misdemeanor convictions, pending cases, and sometimes sex offender registry status. You can't blanket-ban everyone with a record. HUD guidance requires an individualized assessment: consider the nature of the offense, its severity, and how long ago it occurred. Many states have "ban-the-box" laws that delay when you can ask about criminal history. Reports typically cost $15–$40 per applicant. Use them as part of a full screening report, not in isolation. Apply your criteria uniformly to avoid fair housing violations.
A criminal history check is a search of public records—county courts, state databases, and sex offender registries—to see whether a tenant applicant has a criminal record.
At a Glance
- What it is: A search of criminal records (felonies, misdemeanors, sex offender registry) during tenant screening.
- Why it matters: Protects property and other tenants; HUD requires individualized assessment, not blanket bans.
- Typical cost: $15–$40 per applicant; often paid by the applicant.
- Key rule: Consider nature, severity, and recency—document your decision.
How It Works
What the report shows. Criminal background checks pull from county courts, state repositories, and the National Sex Offender Registry. You'll see felony and misdemeanor convictions, pending cases, and sometimes arrests. Convictions are the most reliable—arrests don't mean guilt. Reports typically cover 7 years, though some go further. Match by name, date of birth, and sometimes SSN. "Possible match" means partial data; verify before rejecting.
HUD guidance. The Department of Housing and Urban Development issued guidance in 2016: blanket policies that exclude anyone with a criminal record can have a disparate impact on protected classes and may violate the Fair Housing Act. You must do an individualized assessment. Consider: What was the offense? How serious? How long ago? Has the person shown rehabilitation? A 7-year-old nonviolent drug conviction is different from a recent violent offense. Document your reasoning.
Ban-the-box and timing. Many states and cities restrict when you can ask about criminal history. "Ban-the-box" laws often prohibit the question on the initial application; you may only run the check after a conditional offer. Check your state and local rules. Some jurisdictions limit what you can consider—e.g., no arrests, only convictions, or a lookback period.
Where to run it. Screening services like TransUnion SmartMove, RentPrep, and Avail bundle criminal checks with credit and eviction history. You need written consent from the applicant under the Fair Credit Reporting Act (FCRA). If you reject based on the report, you must send an adverse action notice with the report source and the applicant's right to dispute.
Real-World Example
Marcus: A 7-year-old nonviolent felony in Phoenix.
Marcus screens an applicant for a $1,350/month duplex in Phoenix. The screening report shows a felony conviction from 2017—possession with intent to distribute, nonviolent, 18-month sentence completed. The applicant has held the same job for 4 years, income verification shows $4,200/month, and credit is 690. Marcus does an individualized assessment: offense type (nonviolent drug), recency (7 years), employment stability, clean record since. He approves the applicant and documents: "Approved after individualized assessment—7-year-old nonviolent drug conviction; stable employment; no incidents since release." If he had a blanket "no felonies" policy, he would have rejected without consideration—and risked a fair housing complaint.
Pros & Cons
- Reduces risk of placing a dangerous tenant near other residents.
- Nationwide coverage catches records from other states.
- Cost is modest ($15–$40); one bad tenant can cost thousands.
- Individualized assessment protects you legally and can give deserving applicants a chance.
- Records can be wrong—wrong person, outdated, or expunged but still showing.
- Ban-the-box and local rules add complexity; compliance varies by jurisdiction.
- Overly strict policies can exclude rehabilitated applicants and reduce your pool.
- Must be applied uniformly or you risk fair housing claims.
Watch Out
- Compliance risk: No blanket bans. Do an individualized assessment. Document nature, severity, recency, and your decision. Apply the same process to every applicant.
- Ban-the-box risk: Check state and local laws. Some jurisdictions prohibit asking on the application or limit when you can run the check.
- Accuracy risk: "Possible match" may be a different person. Verify before rejecting. Applicants can dispute errors through the screening service.
- Disparate impact risk: Blanket exclusion of people with records can disproportionately affect protected classes. HUD has pursued cases on this basis.
Ask an Investor
The Takeaway
A criminal history check is a useful screening tool—but use it correctly. No blanket bans. Do an individualized assessment: nature, severity, recency. Document your reasoning. Follow ban-the-box and local rules. Get written consent, and send an adverse action notice if you reject. One bad tenant can cost you $5,000–$10,000; one fair housing complaint can cost more. Screen smart, screen fairly.