Tenant Background Check California

What Background Checks Cover

A background check gives California landlords a closer look at a renter’s history, which includes critical details about tenants, such as:

Criminal history: These reports may include felony and misdemeanor convictions, active warrants, court records, and database alerts, such as sex offender registries and FBI reports. California restricts what landlords can legally consider, so consult California landlord-tenant laws below before using this information.

Credit history: Financial checks help landlords assess an applicant’s ability to pay, but screeners must comply with the Fair Credit Reporting Act (FCRA) when using the data. In California, credit reports often include:

• Credit scores
• Active credit accounts
• Recent credit inquiries
• Outstanding debts in collections

Large debts or accounts in collections within these reports don’t always predict future follies, but they can point to potential missed rent, unpaid bills, and other financial shortcomings.

Eviction history: Scanning an applicant’s records for past evictions helps landlords spot recurring patterns, such as missed rent or lease violations. Eviction reports may show:

• Missed rent payments
• Court rulings for rent or possession
• Unlawful detainer cases
• Eviction orders or writs

TurboTenant checks a nationwide eviction database with over 27 million records, including California filings.

Rental history: This report section lists the applicant’s past residences and may include contact information for previous landlords. Scrutinizing a candidate’s rental history can reveal whether the renter has maintained steady housing and adhered to lease terms.

Income verification/fraud detection: Here, landlords will find information on whether a tenant can afford the rent and if the documents they provide are legitimate. TurboTenant’s Pro-tier Snappt integration verifies income and employment directly from the source. Plus, it catches fraud with 99.8% accuracy.

References: California landlords often ask for references from former landlords or employers. Quickly checking in with these resources can reveal how well applicants communicate, whether they pay rent on time, and how they fared in their last rental or job.

Federal Tenant Background Check Laws

Tenant screening involves private details, so California landlords must follow federal legislation that dictates the process, like the FCRA. Landlords must handle reports carefully, only use them for rental decisions, and securely store or discard the data.

Fair Credit Reporting Act: The FCRA requires landlords to get written permission from an applicant before pulling a background or credit report. If the report leads to a denial, the landlord must send an adverse action notice to the applicant explaining why they rejected them.

Fair Housing Act (FHA): The FHA bars landlords from rejecting applicants based on race, color, religion, sex, national origin, or family status. Landlords must use the same screening rules for every applicant to avoid bias regarding protected characteristics.

HUD guidelines: The Department of Housing and Urban Development dictates that landlords cannot make automatic rejections based on a tenant’s criminal history. If an applicant has a conviction, landlords must consider what happened, how serious it was, and how long ago it occurred before making a decision.

California Laws

On top of federal laws, California sets its own rules for tenant screening. Landlords must follow state guidelines about what they disclose, how much they charge for screening, and how they use background check results when choosing tenants.

Criminal history: Landlords can review certain convictions but cannot consider arrests that didn’t lead to convictions, sealed or expunged records, or nonviolent offenses older than 7 years. Furthermore, state law protects applicants from blanket rejections based on criminal history (Cal. Civ. Code § 1785.13).

Fair Chance Housing: California’s Fair Chance Act prohibits landlords from asking about criminal history until after making a conditional offer to rent. They cannot consider expunged records, pardons, sealed records, juvenile offenses, or convictions that the courts dismissed or nullified. Exceptions apply for registered sex offenders if the housing includes shared living areas (Cal. Gov. Code § 12952).

State-specific Fair Housing additions: California fair housing laws go beyond federal protections and include the tenant’s source of income, sexual orientation, gender identity, marital status, and immigration status as protected classes (Cal. Gov. Code § 12955).

State-level notices/disclosure requirements: Landlords must disclose screening criteria in writing before the application process begins, provide a receipt for any screening fee, and give applicants a copy of the background report within 7 days upon request (Cal. Civ. Code § 1950.6).

Reusable tenant screening reports: California allows applicants to use reusable screening reports, but landlords do not have to accept them. Always check for updates, as portable screening report laws in California are fluid (Cal. Civ. Code § 1950.6(j)).

Red Flags to Watch Out For

After reviewing a background check, California landlords may notice signs that call for a closer look. While these red flags don’t always mean trouble, they can uncover potential problems that could lead to a troublesome tenancy later on.

Late payments or collections: A history of missed payments or accounts sent to collections can signal that a tenant might have trouble keeping up with rent or paying utility bills.

History of evictions: Past evictions reveal issues like unpaid rent, lease violations, or criminal behavior in a rental. California landlords should thoroughly review the details surrounding the eviction and consider how long ago it happened.

Unverifiable income: When income doesn’t check out, it raises questions about whether the applicant can pay rent consistently. California landlords should require solid proof of income to avoid late or missed rent payments.

Inconsistent rental history: Large gaps in rental history or frequent moves can indicate that an applicant is unstable or has had past issues with rentals. California landlords should investigate spotty rental history to uncover whether there’s a pattern that could lead to future issues.

Criminal charges: While California landlords must follow state law and HUD rules when reviewing convictions, certain charges may still cause concern. A pattern of serious criminal offenses could suggest future risk to the property, other tenants, or neighbors.

How To Legally Run a Background Check

California landlords can use TurboTenant to run tenant screenings (powered by TransUnion) and follow these steps to stay organized and within the law:

• Get written permission: Ensure the applicant signs off before running any reports.
• Use a reliable screening service: Stick with trusted options like TurboTenant.
• Confirm identity and SSN: Double-check that names, numbers, and records all line up.
• Review the reports: Carefully analyze credit, eviction, and criminal history.
• Watch for evictions or charges: Past evictions could indicate future issues.
• Apply consistent standards: Use the same criteria for every applicant.
• Send an adverse action notice: If you deny someone, tell them why in writing.
• Use TurboTenant: Manage landlord duties, including tenant screening services, all in one place.