Running a tenant background check in Missouri is an essential step to ensure you’re renting to a responsible and trustworthy individual. By thorough tenant screening, you can protect yourself from late rent payments, property damage, eviction, or worse.
Keep reading for insights on what background checks cover, Missouri and federal screening laws, how to run checks smoothly, tips for a hassle-free process, and digital solutions to help streamline the entire process.
Information on Missouri Background Checks Cover
A thorough tenant background check in Missouri provides landlords with key information to make well-informed decisions. Here’s a quick look at the main areas these checks typically cover:
Identity Verification
First, you want to confirm the applicant is who they claim to be. Identity verification typically matches their name, date of birth, and Social Security number with official records. This step protects you from fraud, prevents mix-ups between applicants with similar names, and gives you confidence that the paperwork matches a real person.
Income Verification
Rent should comfortably fit within a tenant’s monthly budget. Reviewing income helps you confirm they can handle the payment without constant strain. Landlords often look at pay stubs or bank statements to verify earnings. When income lines up with your rental criteria, you reduce the risk of late payments and difficult collection conversations later.
Criminal Background
A criminal background check gives you factual context about an applicant’s past. Screening reports pull data from national, state, and local records so you can evaluate potential safety concerns. The key is to review this information consistently and apply the same standards to every applicant. That approach protects both your property and your decision-making process.
Credit History
Credit history tells the story of how someone manages financial obligations over time. A credit report shows payment patterns, outstanding debts, and overall account behavior. This data helps you gauge how reliably rent may be paid each month.
Eviction History
Past evictions can signal serious lease violations or ongoing payment problems. Court records and screening reports highlight whether an applicant has faced formal removal from a prior rental. While one situation may have context, repeated filings often point to a pattern.
Rental History
Rental history gives you a real-world look at how someone behaves as a tenant. By contacting previous landlords, you can learn whether they paid on time, respected the property, and followed lease terms. Strong references provide reassurance, but weak or vague feedback gives you a reason to dig deeper before handing over the keys.
How to Run a Background Check in Missouri
Running a background check in Missouri is essential to ensure you’re renting to the right person. Here’s an outline of the key steps involved:
- Collect the rental application and written consent: Begin by collecting the tenant’s application and written consent to run the background check.
- Verify tenant’s identity and address history: Confirm the tenant’s identity and review their address history for accuracy and consistency.
- Run criminal background and sex offender checks: Check for any criminal history or if the tenant appears on a sex offender registry.
- Pull the credit report and review results: Obtain the tenant’s credit report to assess their financial reliability and payment history.
- Analyze eviction history and court records: Examine any past eviction records and court documents to understand their rental history.
- Verify employment, income, and rental history: Confirm their employment status, income, and rental history to ensure they have the financial stability to pay rent.
- Review results against screening criteria: Compare the background check results with your established criteria to determine if the tenant is a good fit.
Using trusted third-party software can make the process easier and more efficient and streamline the entire process with just a few clicks.
Federal Screening Laws
Several federal laws govern tenant screening practices across all 50 states, ensuring fairness and privacy for every applicant. Here’s a quick look at some of the key regulations:
Fair Credit Reporting Act: The FCRA oversees the use of credit reports and ensures that tenant background checks are carried out fairly and accurately. The laws require applicant consent, promotes accuracy, and mandates proper adverse action notices.
Equal Credit Opportunity Act: The ECOA prohibits discrimination against applicants based on race, gender, or religion during the screening process. It prohibits unequal treatment in any credit-related housing decision.
Americans with Disabilities Act: The ADA protects tenants with disabilities, ensuring they are not unfairly excluded or treated differently during the rental application process. It also requires reasonable accommodations and accessible housing practices.
Missouri Screening Laws
In Missouri, state-specific laws complement federal regulations, providing additional guidelines for landlords when screening tenants. Here are a some key points to keep in mind:
Permitted screening criteria: Missouri landlords may consider credit history, rental history, and employment status when evaluating applicants. These standards must be applied consistently to all potential tenants.
Prohibited screening criteria: Certain factors, such as race, color, religion, sex, or disability, cannot be used in the tenant screening process. This protects applicants from discrimination based on these protected characteristics.
Considering a tenant’s criminal history: While Missouri landlords can review a tenant’s criminal history, they should not use it as the sole reason for rejecting an applicant. There are also time limits on considering past offenses, depending on the nature of the crime.
Adverse action requirements: If a landlord denies an application based on a background check, they must notify the applicant and clearly explain the reason for the decision. This process includes specifying the criteria that led to the rejection.
Reusable tenant screening reports: Missouri allows landlords to use tenant screening reports from other landlords or agencies, provided the tenant consents and the report remains relevant. This process can help streamline the process for candidates.
Supporting law: Mo. Rev. Stat. 213.040
Tips for Analyzing a Tenant Background Check
When reviewing a tenant’s background check, it’s important to follow best practices to make informed, fair decisions. Here are some helpful tips to consider:
Apply the same screening criteria to every applicant: Consistency is essential in tenant screening. Ensure you evaluate each applicant using the same set of criteria to avoid bias and maintain fairness.
Consider the full report, not just summary scores: Summary scores can be helpful, but they don’t give the full picture. Always take the time to review the entire report for a more accurate understanding of the applicant’s background.
Focus on recent housing-related issues: Pay closer attention to recent rental history or other housing-related issues, as they are better indicators of how an applicant might behave as a tenant.
Weigh patterns more than isolated events: A single negative event, like a late payment, might not be concerning. However, recurring issues, such as multiple late payments, should carry more weight in your decision.
Allow applicants to explain or dispute results: If you encounter any negative findings, allow them to explain or dispute them. This helps ensure fairness and transparency in your process.
Document how each decision was made: Keep detailed records of your screening decisions. This not only helps maintain consistency but also protects you in case of any disputes or legal challenges.
Follow all federal, Missouri, and local screening laws: Stay compliant with all the relevant laws governing tenant screening, whether they’re federal, state, or local regulations.
Missouri-Compliant Tenant Screening Software
In Missouri, tenant background checks are crucial for making informed decisions about who you rent to. Using tenant screening software simplifies this process by delivering accurate results within 15 minutes of tenant authorization.
Sign up for a free TurboTenant account today to start making screening tenants faster and easier.