Do you ask for credit/background check for...?

Question

Hoping to get some advice on fellow BP members.

I’m planning to rent out a unit for a family of 4. Mom, 2 sons of working age and a 17 yo daughter in school. The combined monthly income for the mom and the 2 sons are about 3.5x the rent. Credit/ background check for the mom is cleared and she has minimal debt (mom paid a total of $40 on cozy screening).

My question is, would you also advise doing a credit/background check for the 2 sons as well? And who should be responsible for the fee?

Nathan Gesner · Answer

Any occupant of legal age should be screened. Every time.

Common examples: parent applies and says she'll be paying the rent but her 20-year-old son will live with her while attending college. Parent is squeeky clean but son is a sex offender or had a record dealing drugs.

Young women (especially single moms) move into a rental and are great tenants. They pay on time, keep the place tidy, communicate well, etc. Six months later, she moves in her new boyfriend. You require him to be screened, turns out he has a couple domestics, drug history, lost his job three months ago, and has a credit score of 540. The Bible warns about men that prey on single women like this and there's a reason. To be fair, I've had some good men add their new girlfriend and things fell apart but it tends to be women with their new boyfriends.

These are true stories from early in my career. Screen every adult. They must pass screening before they can occupy.

Nicole A. · Answer

Anyone 18 or older needs to be considered an applicant that will be listed on the lease as a tenant if you end up approving them. So, you need to do a background/credit check for the mom and 2 sons at least.

Also, your first thing to know regarding payments is that it is not your problem regarding who is responsible for the fee. With the checks, it will likely be 3 seperate checks for 3 seperate people, so they can pay however they want.

But when you end up renting to people, you list everyone 18 years and older as a tenent on the lease. That means that everyone listed on the lease is jointly and severally liable. In other words, you expect 100% of the rent paid and how they split it amongst themselves is not your business or problem. So if the rent is $1000, and you are only paid $500 and the tenant says "well I paid my half!", that doesn't matter. You would file for rent court/eviction on all of them until full rent is paid. Same thing if one tenant suddenly disappeared.

Account Closed · Answer

I would probably run a background check on anyone who is currently the age of 18 or over.  Have anyone who is above the age of 18 complete the application along with an application fee to cover the cost of a credit/background check.

Nathan Gesner · Answer

I think you're missing some opportunities. It's probably not a big issue for you because you are experienced and don't manage hundreds of rentals. However, I'm posting this for the viewing public.

A background check does more than just credit/criminal. It also verifies identity. Usually not important, but some day it may be. I once had a man in his 40's show up in my small, conservative town with the intent of renting something for three months. He wanted to pay cash and claimed to be a film maker. With him were two very attractive young ladies, still in their teens (maybe younger). I suspect they were there for prostitution or adult films. He was fine with applying but argued with me when I said the girls would have to apply and be screened. I wouldn't be surprised if they were run-aways.

Checking local criminal records won't work because someone could commit crimes in a different state and then move to yours.

Or what if mom/dad move in with junior and then mom/dad decide to move out three months later? Junior is a legal Tenant and can't be evicted without cause because you allowed him to move in. I once took over management of a rental where a woman applied on her own, was approved, paid all the funds, and took the keys. I took over management three months after she "moved in" and upon my first inspection discovered she was actually living four states away and had rented the house and then moved in her 30-year-old son and his family of five that had crap credit, criminal history, collections, and more.

Screen every adult completely, even if they are not responsible for rent. Make everyone sign the lease. If you believe mom/dad are qualified and junior is not, include a clause that says junior has to leave if mom/dad leave.

Protect yourself, before you wreck yourself!

Anthony Wick · Answer

@Carmen Chow

To follow up on my last post, I do run everybody 18 and over through my free online state court system to check for criminal charges. But I don’t charge the $40 for full screening of credit and eviction history for everybody’s kids that live with them.

Anthony Wick · Answer

@Carmen Chow

I don’t automatically run a background check on everybody over the age of 18, if they are merely children living with parents. However, I do run on anybody that wants their income to quality for the unit. In your case, all 3 would need to fill out a full application, and all 3 need to pay $40 background fee.

Mike McCarthy · Answer

We always background check anyone over 18. Credit check for anyone who’s part of paying the bills.

If it’s. 20 yo son who’s in college, not paying rent, I will sometimes forgo the credit check. But I’m the case of college students paying for a place, always credit check.

Had one younger girl (and friend) apply. She had a DUI on her background check. That in itself probably wouldn’t have disqualified her, but she had a lot of debt racked up on department store credit cards. She wasn’t making enough to cover her spending habits. I’m not her dad... but still Found another, much better qualified tenant.

Brian R. · Answer

@Pete Husband, Columbia Heights.

Carmen Chow · Answer

I was told that you cannot charge potential tenants more than $40 per family in terms of background/ credit check in New York? Does anyone know if this is true? If so, the 2 background/credit for the 2 sons would come out of my own pocket

Brian R. · Answer

One other thing to consider, does your city have a requirement for background checks for tenants?  One city I own property in requires background checks on everyone 18 years or older as part of their licensing requirements.  They don't tell me what criteria to use to approve or deny anyone, just that I know what they have in their past.

If problems occur and the police are called to the property multiple times, they can ask me for a copy of the background check that I did on the tenant.  If I don't produce it, it is a misdemeanor charge against me, and i can loose my rental license for that city.

Do you ask for credit/background check for...?

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