Are landlords allowed to run background checks on tenants?

Tenant Screening and Background Checks for Landlords in Oregon

For landlords in Oregon, tenant screening is a crucial step in the rental process to ensure responsible and reliable tenants occupy their properties. One common part of this process is running background checks, which can include credit reports, criminal history, and rental history. Understanding the legal framework and best practices for conducting these checks in Oregon will help landlords stay compliant and make informed leasing decisions.

Are Oregon Landlords Allowed to Run Background Checks?

Yes, landlords in Oregon are legally allowed to run background and credit checks on prospective tenants. These checks help landlords assess the applicant’s financial responsibility and suitability as a tenant. However, Oregon law includes specific regulations about what can be checked, how it must be communicated, and how the information can be used.

Legal Considerations for Tenant Background Checks in Oregon

Compliance with Federal and State Laws

When conducting tenant background checks, Oregon landlords must comply with federal regulations such as the Fair Credit Reporting Act (FCRA), which governs how tenant screening reports can be obtained and used. Additionally, Oregon has state-specific provisions affecting tenant screening practices, including:

• Tenant Screening Reports: Oregon landlords commonly use consumer reporting agencies to obtain screening reports, which may include credit history, criminal background, eviction records, and more.
• Written Consent: Before running any background or credit checks, landlords must obtain written consent from the tenant applicant. This consent usually comes in the form of an application or a separate authorization form.
• Disclosure Requirements: If a landlord plans to take adverse action—such as rejecting an application based on information in the report—they must provide the applicant with a copy of the report and a notice of the applicant’s rights under the FCRA.

Restrictions on Criminal Background Checks

Oregon has some restrictions related to the use of criminal history in tenant screening to protect applicants who have been convicted of certain offenses:

• Limitations on Use of Conviction Records: Under Oregon law, landlords cannot automatically deny an applicant based on older convictions. Landlords must consider the age and nature of the criminal record, and whether the conviction relates directly to the tenancy.
• Ban the Box Practices: Some cities in Oregon encourage or require “ban the box” policies that limit when landlords can inquire about or use criminal history information during the application process. While not statewide, landlords should be aware of any local ordinances that affect criminal background screening.

Screening Fees and Transparency

• Reasonable Fees: Oregon landlords are permitted to charge a reasonable screening fee to cover the cost of obtaining background and credit reports. The fee must be disclosed upfront in the rental application process.
• Receipt and Record Keeping: Landlords should provide a receipt for the screening fee and retain records of consent for background checks and copies of reports used in making rental decisions.

Best Practices for Running Background Checks in Oregon

To comply with Oregon laws and ensure a fair screening process, landlords should follow these best practices:

1. Obtain Written Consent Before Screening

Always include a clear and conspicuous consent form as part of the rental application that authorizes you to run credit and background checks.

2. Use a Reputable Screening Service

Partner with a consumer reporting agency that complies with FCRA and Oregon state laws, providing accurate and up-to-date information.

3. Disclose Screening Fees Upfront

Inform applicants about any screening fees before they submit their application. Keep screening fees reasonable to avoid disputes.

4. Evaluate Criminal Records Carefully

Do not automatically reject applicants for older or unrelated convictions. Assess whether the criminal history poses a legitimate risk to the property or other tenants, and comply with any local restrictions on using criminal history.

5. Provide Adverse Action Notices If Applicable

If you decide not to rent based on information in a screening report, provide the applicant with:

• A copy of the background or credit report that influenced your decision.
• A summary of their rights under the FCRA.
• Contact information for the agency that provided the report.

6. Maintain Confidentiality and Secure Records

Keep screening reports and sensitive applicant information secure and confidential to protect applicants’ privacy.

Summary

Landlords in Oregon are permitted to run background and credit checks on potential tenants as part of their screening process. These checks should be conducted in compliance with both federal and Oregon-specific laws, which require:

• Obtaining written consent prior to screening.
• Charging reasonable fees with transparent disclosure.
• Considering criminal backgrounds fairly and within legal limits.
• Providing adverse action notices if denying a rental application based on screening information.

Adhering to these practices not only helps landlords select qualified tenants but also mitigates legal risks and promotes fair housing in Oregon's rental market.