Apartment Background Check: How Does it Work?

Michelle Wilson - November 22, 2023

An apartment background check is a standard part of the rental process. This screening offers a snapshot of who you are. As a prospective tenant, the entire process may be intimidating and concerning. To help you understand the steps, here’s everything you need to know about an apartment background check.

Will All Apartments Perform Background Checks?

Typically, the apartment background check occurs during the rental process. Although a landlord may request a background screening, it isn’t the only aspect considered during the application process. Your acceptance into the prospective unit depends on a few factors, which the landlord can explain in detail at the time of viewing the unit. Additionally, individual landlords will determine the qualifying factors for each unit. For example, a prospective tenant with a few concerns will likely be rejected by a large corporation, but a private landlord may be willing to work with the individual.

If you’re concerned about the application process, approach the landlord with fabulous references and remain honest. Additionally, you can ask the landlord if they would accept a higher security deposit or longer lease term to offset any red flags they uncover.

How Extensive is the Apartment Background Check?

An apartment background check is similar to an employment screening but only covers specific areas when reviewing the results. Your prospective landlord may review the following areas within your report:

Your Employment History

A landlord wants to ensure your income is at least three times the amount of your monthly rent. When they review your employment history, they’ll likely confirm the place, position, employment duration, and any holes in your employment.

Occasionally, landlords may want to call your employer to verify a few details about your employment. A landlord will want to see at least six months of consecutive employment before agreeing to a lease. If you’ve recently changed jobs, have your employer write a letter explaining the career change. This letter could also include a letter of recommendation, which offers a few details about your job. A few landlords will allow a note to ensure you’ll stay for the duration of your lease.

Why is Your Employment History Important to Employers?

An individual who continuously changes positions is less likely to stick with an apartment for the duration of their lease. Additionally, tenants may offer a higher security deposit to show they hold enough financial security to cover rent for a few months.

Previous Rental History

The background check will always review the previous rental history on an applicant’s report. This section will list all addresses on file, including the landlord’s contact information. An individual without a rental record isn’t automatically disqualified, but identifying any risk factors can make it challenging.

For individuals without a previous rental history, landlords will carefully review your employment history, pay stubs, and any references. A landlord wants to ensure the tenant can pay for the unit on time. Anyone with late rent payments or previous evictions on their file could be a potential red flag for the landlord.

Comprehensive Credit History

Landlords want to see someone financially responsible when finding prospective tenants. Many landlords require a credit score above 600 or more to secure the unit. A lower credit score doesn’t automatically reject your application; however, it may raise a few questions from the landlord.

Your credit score will always be a critical factor in an apartment background check, but the credit history is often more important. For instance, a tenant consistently paying bills on time and suddenly facing an illness or job loss differs considerably from an individual who is frequently delinquent because of poor money management.

Before looking for a new apartment, review your credit history to review your score and investigate any reporting errors. An individual can check the credit history before a landlord runs the application. Individuals with credit scores under 600 may require a guarantor.

Reviewing Criminal History

Your criminal history doesn’t just show convictions; it also highlights anything dismissed, settled, or not prosecuted. Non-convictions will appear on your account for seven years, while convictions often remain on the file permanently. If you have a previous record, be honest with your landlord before they find it on the report.

How Long Will a Background Check Take?

Typically, the application process will take a few days to process. On average, the entire application process takes between 48 and 72 hours. Your apartment background screening is only a small portion of your application process. Most often, the background screening takes a few hours to confirm.

How Much Does a Background Check Cost?

When you apply for a new apartment, you may pay an application fee. This fee will often cover your background check or other administrative costs. Frequently, the application fee is between $30 and $50, but several landlords will charge more.

A prospective tenant should pay more than the cost of a credit report for their application fee, so be wary of anyone charging ridiculous rates. Whenever possible, evaluate local laws to see if there is a maximum amount a landlord can charge in your area.

How Far Back Does an Apartment Background Check Go?

The information within your background check will vary according to your location. A credit check typically goes back seven to ten years on the report. All negative information within the credit report will stay on file for seven years. Likewise, bankruptcy will remain on your credit report for several years (potentially ten years).

A landlord must establish a generic application process and acceptance regulations to use as a guide for all prospective tenants. They cannot use one set of standards for one applicant and another set of rules for a different individual. Several states hold independent laws relating to housing applications and background checks.

Your Rights as a Tenant

If a landlord rejects your rental application, they must explain the denial. If they ran a background check, the landlord must provide you with any contact information for the company providing the report. The explanation should always include detailed instructions on correcting inaccurate information and obtaining a free copy of your report within 60 days of the landlord’s decision.

Conclusion

Running an apartment background check is a small but common component in the rental application process. Although it sounds intimidating, the background screening is just a small aspect of the application process. Your landlord wants to find a tenant who will stay throughout the lease term, pay the rent on time, and live amicably among other tenants. If you’re worried about securing a rental unit, consider looking for a private landlord or offering a higher security to increase your success overall.