Apartment Background Checks
Landlords have discovered a way to better ensure the security of their business and property by requiring background checks of all potential tenants. Background checks are defined by the Fair Credit Reporting Act as a consumer report. It verifies social security numbers, can include a work history analysis, and a full credit report. Bankruptcy records are considered public record and are also included in background checks as well as criminal history, although this varies widely from state to state. Previous or existing business relationships such as insurance companies or banks are also included. The military is able to disclose facts such as name, rank, salary, assignments and awards along with the DMV without a person’s consent. Studies show that over 40% of information on applications is either false or has been touched up in some way. Background checks are just one way that allows landlords to breathe easier about who they allow onto their property.
Tenant’s rights in association with background checks include the protection of medical and student records. Also, neither disabilities nor workers compensation records can be disclosed. Student records are private and cannot be divulged to anyone but the student according to the Family and Educational Privacy Rights Act of 1970. Before a background check can be performed, the tenant must be notified in writing. The tenant must then draw up a written authorization. It is best to know what is in your background check record before you hand it over to a potential tenant. Social security and drivers license numbers ensure that criminal history and driving records are also released. Disputed information must be investigated and corrected by the reporting agency. Tenants also have the right to a free copy of their report once a year from any specialty agency once a year. As of now, reports can be requested via telephone contact. Usually, the reporting agency only needs a name, address, and social security number to process requests, however, requests can take however long the agency needs in order to be processed.
The landlord has the responsibility of issuing an adverse action if the tenant is denied. The action must also be filed if the landlord’s action imposes a burden not required of all tenants, such as a co-signer, deposit requirements, or increases in rent. Landlords can be responsible for all their tenants safety, hence background checks are an important part of the evaluation process. Since renting is a business, background checks are viewed as a simple part of ensuring a good business experience for all.
Although there are different types of background checks available for the general public and potential inquirers, they can be ordered depending on their need. However, cases of identity theft are good times to order all available reports. Information may overlap in all the reports so it is important to check and correct them all. Although mention of a background check may make some people nervous, it is important to keep in mind that people such as landlords use this information for the benefit and safety of all involved.