According to AP News, it’s estimated that nearly 3.6 million eviction cases are filed each year. Now there can be a lot of different reasons for an eviction. Often it’s simply due to nonpayment during tough financial times. However, more insidiously it can be because a tenant with a criminal history is violating your property.
Since evictions can be expensive, it’s vital that you do everything in your power to avoid this.
That means conducting a tenant criminal background check. But how do you go about conducting one of these checks in Memphis? In this tenant screening process guide, we’ll walk you through the process to make sure you do everything in a fair and legal manner.
Why Conducting a Tenant Criminal Background Check Is Essential
Selecting the right tenant can mean the difference between a smooth rental experience and costly headaches. If a tenant has a criminal history, there’s a risk they could engage in illegal activity on your property. This not only threatens the safety of your property and other tenants but could also expose you to legal liability.
For example, if illegal activities occur on your rental property and you fail to screen your tenant adequately, you might face consequences ranging from legal fines to reputational damage.
Moreover, tenants with criminal records may be more likely to break lease agreements, potentially leading to expensive eviction proceedings. On average, eviction costs landlords nearly $2,000; and that doesn’t account for unpaid rent or the stress of navigating the legal system.
A well-executed criminal background check can mitigate these risks. It provides a clearer picture of your prospective tenant, allowing you to make informed decisions while safeguarding your investment.
Understanding the Legal Framework in Memphis
Before you begin screening tenants in Memphis, it’s crucial to understand the laws that govern the background check guidelines. Tenant screening is regulated by federal, state, and local laws designed to prevent discrimination and ensure fairness.
The Fair Housing Act, a federal law, prohibits discrimination based on:
- Race, color, or religion
- Sex, familial status, or national origin
- Disability
This means you must apply criminal background checks consistently to all applicants, without targeting specific groups. The Department of Housing and Urban Development (HUD) also advises landlords against implementing blanket bans on applicants with criminal records, as this could unintentionally lead to discriminatory practices.
Tennessee state law further regulates tenant screenings, including criminal background checks. Non-compliance with these laws could result in fines or lawsuits, so it’s important to stay informed.
Tools and Resources for Tenant Screening
Conducting a criminal background check in Memphis doesn’t have to be overwhelming. Several reliable resources can streamline the process while providing accurate and comprehensive information.
Tenant screening services offer background checks that include:
- Criminal history
- Credit reports
- Eviction records
These services are user-friendly and ensure compliance with applicable laws. Additionally, you can access local criminal records through the Shelby County Clerk’s Office or online databases.
These sources allow you to verify criminal history at the county level, providing a detailed view of any legal issues that might not appear in national searches. Or, if you don’t want to conduct the background check yourself, consider tenant placement services.
Steps to Conducting a Criminal Background Check
A thorough background check involves more than just running a search-it requires careful planning and attention to detail. You must obtain written consent from the applicant.
Federal and state laws mandate that landlords secure this consent to protect the applicant’s privacy. Including this requirement in your rental application or providing a separate form for consent ensures that your actions are legally sound.
Once you get consent, you can run the background check. First, verify the tenant’s identity. Collect essential information such as their full name, date of birth, Social Security number, and a copy of their government-issued ID.
Verifying identity not only ensures the accuracy of the background check but also prevents errors caused by incomplete or incorrect data.
After verifying identity, conduct a search of criminal records. Use both national databases and local Memphis resources to ensure a thorough review. National searches can reveal convictions, pending cases, and arrests from across the country, while Memphis-specific records provide insights into local legal issues that might not appear elsewhere.
Finally, evaluate the findings. Not all criminal offenses are equal. Minor infractions may not impact a tenant’s ability to fulfill lease obligations, while more severe offenses could pose significant risks. Consider factors such as:
- The severity of the offense
- How recently the offense occurred
- Evidence of rehabilitation or mitigating circumstances
This step requires careful safe tenant selection judgment and a commitment to fairness.
Balancing Safety and Fairness
While it’s crucial to protect your property and other tenants, you must also adhere to fair housing practices. HUD guidelines recommend avoiding blanket bans on applicants with criminal records. Instead, adopt a tailored approach that evaluates each applicant on a case-by-case basis.
For example, a decades-old misdemeanor may not be as relevant as a recent conviction for a violent crime. Establishing clear, written screening criteria can help you make consistent and unbiased decisions. Documenting these decisions is equally important – it serves as evidence that your rental application procedures are fair and compliant with legal standards.
Finalizing the Tenant Selection
Once you’ve reviewed the background check and made your decision, it’s time to communicate with the applicant. If you’re denying their application based on the results of the background check, you are legally required to provide an adverse action notice. This notice must include:
- The reason for the denial
- The name of the background check service used
- Information on how the applicant can dispute the results
Transparency is key during this process. By explaining your decision respectfully and clearly, you maintain professionalism and reduce the likelihood of disputes or complaints.
Need a Tenant Criminal Background Check? Contact Reedy & Company
We hope this property management tips guide helped you learn how to conduct a tenant criminal background check in Memphis. If conducting this check seems like a lot of work, you’re not wrong.
Luckily, we here at Reedy & Company have decades of experience with tenant screening. We make sure to find you the right tenant in a way that’s safe and legal. So if you want to learn more about our services, get in touch with us today.
