Are landlords allowed to run background checks on tenants?

Tenant Screening and Background Checks for Landlords in Missouri

In Missouri, landlords have a vested interest in ensuring that prospective tenants are reliable, responsible, and capable of meeting lease obligations. One important tool available to landlords is the ability to run background checks on applicants. Understanding the legal framework and best practices surrounding tenant screening, including background checks, is essential for Missouri landlords to make informed decisions and comply with state and federal laws.

Are Missouri Landlords Allowed to Run Background Checks?

Yes, Missouri landlords are permitted to run background checks on prospective tenants. Conducting these checks is a common and accepted practice used to evaluate an applicant’s criminal history, creditworthiness, rental history, and other relevant information that can impact the landlord’s decision-making process.

What Types of Background Checks Can Missouri Landlords Use?

Missouri landlords typically use the following categories of background checks:

• Criminal Background Checks: To uncover any prior criminal convictions, which may influence landlords’ decisions based on the nature or recency of offenses.
• Credit Checks: To evaluate financial responsibility, including history of paying debts and bills on time.
• Eviction History Reports: To identify any past evictions, non-payment of rent, or breaches of lease agreements.
• Employment Verification: To confirm steady income and employment status, although this is often part of the tenant screening process rather than a formal background check.

Legal Requirements and Restrictions

While Missouri landlords have the right to conduct background checks, they must do so within the boundaries of federal and state laws designed to protect applicants’ rights.

Compliance with the Fair Credit Reporting Act (FCRA)

When using third-party consumer reporting agencies (CRAs) to obtain background checks—including credit reports—landlords must comply with the federal Fair Credit Reporting Act (FCRA). Key obligations under the FCRA include:

• Obtaining Written Consent: Landlords must secure written authorization from the tenant before requesting any consumer report.
• Notice of Adverse Action: If a landlord decides to deny the rental application (or take any adverse action) based on information obtained from a background check, they must provide the applicant with a pre-adverse action notice containing a copy of the report and a summary of rights under the FCRA. After the decision, an adverse action notice must be sent.
• Use of Information: Information used must be relevant to tenancy decisions, and landlords should avoid discriminatory practices.

Missouri-Specific Protections and Considerations

While Missouri does not have a comprehensive landlord-tenant screening statute like some other states, landlords should remain mindful of certain considerations:

• Non-Discrimination: Under the Missouri Human Rights Act and federal laws such as the Fair Housing Act, landlords cannot discriminate against applicants based on race, color, national origin, sex, disability, familial status, religion, or other protected classes. Denials based on background checks must not violate these protections.
• Ban-the-Box Legislation: Missouri does not have statewide "ban the box" laws restricting questions about criminal history on rental applications. However, landlords should exercise caution and consider whether an applicant’s criminal record is directly related to the rental property and tenant safety.
• Accuracy of Information: Missouri landlords should verify the accuracy of any adverse information and consider the context when evaluating criminal records or credit histories.
• Timing of Screening: It’s advisable to wait until after an initial screening or interview before conducting background checks to respect applicants’ privacy and reduce unnecessary costs.

Best Practices for Missouri Landlords When Running Background Checks

To maximize the effectiveness of tenant screening and comply with legal requirements, Missouri landlords should follow these best practices:

1. Obtain Written Authorization: Always get signed, written permission from each prospective tenant before running a background or credit check.
2. Use a Reputable Screening Service: Partner with professional tenant screening companies that comply with the FCRA and provide accurate, up-to-date reports.
3. Be Consistent: Apply the same screening criteria to all applicants to avoid discriminatory practices or claims of unfair treatment.
4. Evaluate Criminal Records Carefully: Differentiate between serious offenses that may impact safety or property and minor or outdated convictions.
5. Consider Rental History: Review eviction records and past landlord references to assess tenant reliability.
6. Keep Information Confidential: Protect applicants’ privacy by securely storing screening results and only sharing information as necessary.
7. Communicate Transparently: Inform applicants about the screening process upfront, including potential fees and how information will be used.

Conclusion

Landlords in Missouri have the legal right to run background checks on prospective tenants, which serve as an important tool for making informed leasing decisions. By understanding and adhering to both federal and state legal requirements, employing consistent and fair screening practices, and respecting applicant privacy, Missouri landlords can effectively manage risk while fostering positive landlord-tenant relationships.

Careful tenant screening, including thorough background checks, ultimately contributes to the safe, lawful, and profitable operation of rental properties across Missouri.