Background checks are an indispensable tool for landlords. They provide a comprehensive view of potential tenants, ensuring safer rental communities and reducing tenant turnover. In Texas, these checks have particular nuances that landlords must understand to effectively screen applicants.
Why Run a Texas Background Check?
Conducting a Texas background check is essential for several reasons:
- Prevent application fraud: Application fraud, where applicants provide fake documents, is increasing in Texas. Thorough background checks can shield landlords from such scams.
- Avoid costly evictions: Evictions in Texas are lengthy and expensive, often taking months and costing thousands. Understanding a tenant’s rental history through background checks can prevent these situations.
- Identify criminal activity: A Texas criminal background check is crucial for maintaining a safe community. While landlords cannot discriminate solely based on criminal history, certain offenses might legally justify tenant denial.
Key Components of a Texas Background Check
Credit Report
A credit report is vital to assess a prospective tenant’s financial responsibility. It usually includes:
- Basic information: Former names, addresses, etc.
- Fraud indicators: Such as invalid phone numbers.
- Credit/resident scores: Helping gauge reliability.
A score below 500 is risky, while reliable tenants typically exceed 560.
Criminal History
A Texas criminal background check combines national databases, state records, and county documents. This depth ensures landlords can make informed decisions regarding tenant suitability.
Income Verification
Landlords often verify income using:
- Pay stubs: Common for employees.
- Tax returns: A robust method due to its official nature.
- Bank statements: Useful for self-employed individuals.
Income verification ensures tenants can meet their rental obligations.
Eviction History
Evictions may not show up on standard credit reports but are crucial for landlords. Federal law generally excludes evictions older than seven years from such reports, encouraging landlords to obtain eviction history reports directly.
Rental Application
Landlords gather crucial information like:
- Contact details: Name, phone number, and email.
- Previous renting experience: Including references from former landlords.
- Employment history: Past and current employers.
Consent to run a credit check and additional inquiries about pets or smoking habits can finalize the application process.
Cost considerations in Texas
Costs for background checks vary based on the details required:
- National checks: Typically range from $13-60 per person.
- Texas-specific checks: Usually cost between $10-25 per person.
- County records: $16-25 per county checked.
Selecting the appropriate type of check can optimize expenditures and ensure accuracy.
Legal Framework for Background Checks in Texas
Understanding legal requirements is crucial for compliance:
The Fair Credit Reporting Act (FCRA)
This federal law protects consumer privacy, ensuring fair reporting. It restricts how landlords can use credit report information.
Civil Rights Act and Texas Regulatory Consistency Act
These laws prohibit discrimination and maintain consistency in regulations across Texas. They preempt local laws, providing a unified framework for background checks.
Expunging Records
Texas law limits expungement. Understanding what and when records can be sealed helps landlords conduct compliant checks.
Implementing a Background Check Strategy
Using a third-party provider like Innago can ensure adherence to relevant Texas laws. Innago partners with Experian to deliver accurate background checks, making tenant screening straightforward for landlords.
Running background checks with Innago
Benefits of using Innago include:
- Comprehensive checks: Access to credit, criminal, and eviction reports.
- Income verification: Seamless process with bank and payroll integration.
With its intuitive platform, Innago supports landlords in making informed and compliant decisions.
Conclusion
Running a background check in Texas involves understanding legal, financial, and process-related aspects. By leveraging tools like Innago, landlords can efficiently screen tenants, protect their properties, and foster safe communities. Ensure all checks are compliant with local and federal regulations to safeguard against future liabilities.
