Quick Answer
A renters background check should cover credit, criminal, and eviction history, and it has to follow the Fair Credit Reporting Act (FCRA) from start to finish. That means getting written consent before you run it, applying the same criteria to every applicant, and sending an adverse action notice if you deny someone (or change lease terms) based on what the report shows. According to a joint RentRedi and BiggerPockets survey of 2,100 landlords, nearly half named background checks the single most important factor in evaluating a tenant, more than references, credit scores, or pay stubs.
Why Background Checks Carry So Much Weight
Most landlords have been here: an application that looks solid on paper, and then a background check turns up something that changes the picture entirely. That’s exactly why background checks rank where they do. In the same RentRedi and BiggerPockets survey cited above, background checks beat every other screening factor, including landlord references (about a third of respondents) and credit scores (under a fifth).
A thorough background check protects more than your bottom line. It reduces the odds of costly evictions, property damage, and disputes down the line, and it gives every applicant a fair, consistent shot at the unit.
What Goes Into a Renters Background Check
A complete background check typically pulls three types of consumer reports:
- Credit report: payment history, outstanding debt, and any bankruptcies or collections
- Criminal history: records from national and state databases
- Eviction history: prior eviction filings or judgments, searched nationally
Before you request any of it, get the applicant’s written consent, usually a section on your rental application, and collect the basics you’ll need to run the check: full legal name, date of birth, current address, and Social Security number. If an applicant refuses to consent, you’re within your rights to deny the application on that basis alone.
Following FCRA Rules, Not Just the Steps
This is the part most background-check guides skip, and it’s the part that protects you most. The FCRA doesn’t just govern how you request a report, it governs what you’re required to do after you read it.
Use an approved reporting agency. The FCRA requires that any consumer report used for tenant screening come from an approved Consumer Reporting Agency (CRA), not an informal background search.
Apply the same criteria to every applicant. Decide your disqualifying factors (a specific eviction history, a credit score floor, certain conviction types) before you start screening, and hold every applicant to the same standard. Inconsistent criteria is one of the fastest ways to trigger a fair housing complaint.
Send an adverse action notice when required. Under FCRA Section 615(a), if you take any adverse action based on a consumer report, denying the application, requiring a co-signer, asking for a larger deposit, you’re required to notify the applicant. The notice has to identify the reporting agency that supplied the report and spell out the applicant’s rights under the FCRA, including the right to dispute inaccurate information. The FTC’s landlord guidance covers the specifics landlord by landlord.
Weigh criminal history with context. A conviction from a decade ago shouldn’t automatically carry the same weight as a recent one, and some states and municipalities restrict how criminal history can factor into a leasing decision at all. Check your local landlord-tenant law before finalizing a screening policy.
How RentRedi’s Screening Works
We built RentRedi’s tenant screening around the same FCRA-compliant standard described above, using TransUnion as the reporting agency. A standard background check runs $39.99, paid by the applicant, and covers a full credit report, criminal history search (370 million-plus records nationwide), and eviction history (27 million records across all 50 states and D.C.). TransUnion’s ResidentScore, included in that report, predicts eviction risk 15% better than a traditional credit score alone.
Landlords who also want income and asset verification can add it for $10 more ($49.99 total), verified through Plaid rather than requiring the applicant to hand over pay stubs or bank statements directly. Every report generates automatically once the applicant completes screening in the RentRedi app, so there’s no manual chasing down documents on your end. For a closer look at how the income and asset verification report itself works, see our guide to tenant income verification and background reports.
Common Mistakes to Avoid
Skipping written consent
Running a check before getting signed consent isn’t just a compliance gap, it can expose you to legal liability regardless of what the report shows.
Applying inconsistent criteria
Approving one applicant with a lower credit score while denying another with the same score, without a documented reason, is one of the clearest fair housing red flags a landlord can create.
Forgetting the adverse action notice
Even a partial denial, like requiring a co-signer instead of rejecting outright, counts as adverse action under the FCRA. Skipping the notice is a common and avoidable compliance gap.
Treating all criminal history the same
An old, minor offense and a recent, serious one aren’t the same risk. Some jurisdictions also legally restrict how far back you can consider criminal history at all.
Getting the process right protects both sides of the lease: it gives you a fuller, more accurate picture of an applicant, and it gives every applicant a fair, documented, FCRA-compliant review.
FAQ
What is included in a renters background check?
A standard renters background check includes a credit report, a criminal history search, and an eviction history search. Most landlords run these together through a single Consumer Reporting Agency rather than pulling each report separately, which keeps the process FCRA-compliant and easier to document consistently across applicants.
How much does a renters background check cost?
Costs vary by provider, typically $25 to $50 for a standard credit, criminal, and eviction report. On RentRedi, a standard background check costs $39.99, with an optional $10 add-on for Plaid-verified income and asset verification, for $49.99 total. There are no subscriptions or hidden fees on either tier.
Who pays for a tenant’s background check?
It depends on the platform and local law. On RentRedi, the applicant pays the screening fee directly, so there’s no upfront cost to the landlord. Some states cap how much an applicant can be charged for screening, so check local rules before setting a policy.
What is an FCRA adverse action notice, and when do I need to send one?
An adverse action notice is a required disclosure under FCRA Section 615(a) whenever you deny an application, or take any less favorable action, based even partly on a consumer report. It must identify the reporting agency and inform the applicant of their FCRA rights, including the right to dispute inaccurate information.
Can I deny an applicant based on criminal history?
In most cases, yes, but not automatically or without context. Consider how long ago the offense occurred and its relevance to tenancy, and check state and local law, since some jurisdictions restrict how criminal history can be used in leasing decisions.
How long does a renters background check take?
Most reports return within minutes once the applicant completes the screening request, since credit, criminal, and eviction databases are queried electronically. Delays usually come from the applicant, not the report itself, if they haven’t finished the consent and payment steps.
What’s the difference between a background check and a credit check?
A credit check is one piece of a background check. A full background check also includes criminal and eviction history, which a credit check alone doesn’t cover, giving a more complete picture of an applicant’s rental risk before you sign a lease.
Next Steps
- Set your screening criteria in writing before you start reviewing applicants, so every applicant is measured against the same standard.
- Confirm your rental application includes a written consent section for background screening.
- Review your state and local landlord-tenant law for any restrictions on using criminal history in leasing decisions.
RentRedi’s tenant screening runs FCRA-compliant credit, criminal, and eviction reports through TransUnion, tenant-paid, with results delivered automatically to your dashboard.