Oregon Tenant Background Check

What Background Checks Cover

Whether you have a condo in Portland or a historic home in Salem, you want to ensure that you have trustworthy and reliable people living in your investment. When conducting a tenant background check, Oregon landlords should review several key considerations, including:

Criminal history: A landlord in Oregon may consider an applicant’s criminal history during the tenant background check, but with some limitations. Landlords may consider convictions, but not arrests that did not lead to convictions.

Credit history: A credit report provides a clear and concise snapshot of an applicant’s financial history, including their credit score, outstanding credit, the number of credit inquiries, and any debt in collections.

Eviction history: Eviction history is a standard part of a tenant background check in Oregon and should be taken into consideration. TurboTenant can help you see past failure to pay rent, judgments, and more.

Rental history: Verify previous landlords and addresses to confirm self-reported information and obtain references.

Income verification: Verify the applicant’s self-reported income to ensure they can afford your rental comfortably. Compare data from Rent Butter with Income Analysis, a TurboTenant Premium feature.

References: An Oregon landlord can check the references of an applicant, including past landlords, employer references, and personal references.

Federal Tenant Background Check Laws

A tenant background check in Oregon involves sensitive and personal information about an applicant. A landlord must comply with all applicable legal requirements for screening applicants.

Fair Credit Reporting Act: Under the Fair Credit Reporting Act, a landlord must get written consent to run a background check. If you deny an applicant based on information you find, send an adverse action notice with more information.

Fair Housing Act: The FHA prohibits discrimination based on protected classes, including race, color, religion, national origin, sex, familial status, and disability.

HUD Guidelines: The Department of Housing and Urban Development (HUD) strongly discourages landlords from using blanket bans, which prohibit all applicants with criminal records. Instead, these applications should be considered on a case-by-case basis, taking into account the severity of the crime, when the tenant committed it, and other relevant factors. Landlords cannot use arrests made without convictions as a sole disqualifier.

Oregon Laws

In addition to federal law, you must follow state-specific laws in Oregon as a landlord:

Criminal history: While some states have a look-back limitation on criminal history, Oregon allows landlords to consider a criminal history for an indefinite period. However, some Oregon jurisdictions, such as Portland, have limitations on how far back a landlord can look into a tenant’s criminal background.

Fair Chance Housing: In Oregon, it is illegal for a landlord to deny an application based on a person’s criminal record. However, you may consider certain aspects of crime, including those that pose a potential risk to other tenants or neighbors.

State-specific Fair Housing additions: In addition to federally protected classes under the FHA, Oregon has protections for other classes, including source of income, marital status, sexual orientation, and gender identity, survivors of domestic violence, and Section 8 housing choice vouchers.

State-level notices/disclosure requirements: The Oregon Residential Landlord and Tenant Act outlines notices and disclosures landlords are required to provide tenants, typically before move-in.

Re-usable tenant screening reports: In Oregon, a landlord is not obligated to accept these reports, but may choose to do so. The landscape is constantly changing; be sure to stay up-to-date on the law.

Red Flags to Watch Out For

Red flags aren’t just a buzzword; they’re things to look out for to help protect your investment. When it comes to your rental property, here are some things to look out for:

Late payments or collections: A history of late payments or collections may indicate that an applicant would have trouble paying their rent.

History of evictions: A previous eviction may indicate inability to pay rent or adhere to lease requirements.

Unverifiable income: You want a tenant who can afford your property. If you are unable to verify their income, this may indicate a problem with their ability to pay.

Inconsistent rental history: Inconsistent rental history or gaps in rental history can indicate instability or problems with past landlords.

Criminal charges: Past criminal charges and convictions can indicate potential safety issues for other tenants and neighbors in the area. Be sure to follow the law and consider convictions.

How To Legally Run a Background Check

An Oregon landlord can use TurboTenant to complete the tenant background check process. Here are the steps to take:

• Get written permission: Always obtain written consent before running a background check.
• User verified tenant background check service: TurboTenant can help you every step of the way, with an easy and seamless process.
• Verify identity and SSN: Request ID to verify identity and SSN.
• Review reports: Carefully examine all credit, rental, and criminal history information. 
• Check for evictions or criminal history: Look out for any red flags that may indicate potential issues in the future.
• Evaluate based on consistent criteria: Apply the same criteria to all of your applications. 
• Send an Adverse Action Notice if rejecting: Send written notice of rejection, including why and where you got the information.
• Use TurboTenant to streamline this entire process: From rental application form to accepting a tenant, keep everything in one place with our easy-to-use platform.