Are landlords allowed to run background checks on tenants?

Tenant Screening in Massachusetts: Background Checks for Landlords

In Massachusetts, landlords are permitted to conduct background checks on prospective tenants as part of the tenant screening process. These checks help landlords assess the reliability and suitability of applicants, ensuring they select tenants who will comply with lease agreements and maintain the property responsibly. However, Massachusetts has specific legal requirements and best practices that landlords must follow to conduct background checks lawfully and ethically.

Legal Framework for Background Checks in Massachusetts

Massachusetts landlords’ right to run background checks is governed by a combination of state laws and federal regulations. These laws are designed to protect renters from discrimination and invasion of privacy while enabling landlords to make informed rental decisions.

Key Legal Requirements Include:

• Compliance with Fair Credit Reporting Act (FCRA):

If a landlord uses a third-party screening company to obtain background reports, they must comply with the FCRA. This includes obtaining the tenant’s written consent before pulling a report, providing the tenant with a “notice of adverse action” if the report results in a denial, and supplying the name and contact information of the reporting agency.

• Written Tenant Consent:

Massachusetts law requires landlords to obtain the prospective tenant’s consent in writing prior to conducting a criminal or credit background check.

• Limits on Use of Criminal Records:

Since 2018, Massachusetts has restricted the way landlords can use criminal records when screening tenants. Landlords cannot deny housing solely based on an arrest record without a conviction, nor can they reject applicants based on non-violent offenses that occurred more than seven years ago. The offense must be relevant to the rental application and present a legitimate concern for safety or property damage.

• Compliance with the Massachusetts Consumer Protection Act:

Landlords must ensure that all screening practices are fair and transparent under this consumer protection standard.

What Background Checks Can Include

In Massachusetts, landlords commonly use the following types of background checks for tenant screening:

• Credit Reports:

Help landlords understand an applicant’s financial responsibility and payment history.

• Criminal Records:

Used to evaluate any past criminal convictions that may pose a risk to property or other tenants.

• Eviction History:

Checks for any previous eviction cases or judgments.

• Employment and Income Verification:

Confirm the tenant’s ability to pay rent regularly.

• Rental History:

Landlords may contact former landlords to verify timely rent payments and treatment of prior properties.

Tenant Screening Best Practices for Massachusetts Landlords

To ensure compliance with Massachusetts laws and to uphold ethical standards, landlords should follow these best practices when running background checks:

1. Obtain Written Authorization

Always get the applicant’s written permission before conducting any background check. This can be incorporated into the rental application form or as a separate document.

2. Use Reputable Screening Services

Consider working with consumer reporting agencies that are FCRA-compliant to ensure the accuracy and legality of information.

3. Provide a Clear Screening Policy

Inform prospective tenants upfront about the screening criteria, what checks will be performed, and how the information will be used.

4. Evaluate Criminal Records Fairly

Make decisions based on relevant convictions that bear a reasonable relationship to the rental situation, avoiding automatic rejections for minor or outdated offenses.

5. Notify Tenants of Adverse Decisions

If a tenant is rejected due to information from a background check, provide them with an adverse action notice that includes the reason and details about the reporting agency, as required under FCRA.

6. Protect Tenant Data Privacy

Secure all personal information collected during screening, and dispose of it properly if the application is denied or withdrawn.

Fees and Timing

Massachusetts permits landlords to charge prospective tenants a reasonable fee to cover the cost of background checks and credit reports. However, the fee must be clearly communicated before the screening process begins.

Timeliness is also important. Landlords should conduct the background checks promptly and communicate decisions quickly to avoid unnecessary delays for applicants.

Summary

In summary, landlords in Massachusetts have the right to run background checks on prospective tenants but must do so in compliance with state and federal laws:

• Obtain written consent before any screening.
• Use screening results responsibly, with consideration for relevance and fairness.
• Follow disclosure and notification requirements, especially when adverse decisions are made.
• Ensure all tenant data is handled securely and confidentially.

By adhering to these rules and best practices, landlords can conduct effective tenant screening that protects their property interests while respecting tenant rights under Massachusetts law.