Are landlords allowed to run background checks on tenants?

Tenant Screening and Background Checks for Landlords in Washington State

When managing rental properties in Washington, landlords have important responsibilities to ensure the safety, reliability, and legal compliance of their screening practices. Conducting tenant background checks is a common and valuable tool to evaluate potential renters, but Washington state imposes clear regulations that landlords must follow to protect the rights of applicants while mitigating risks.

Are Landlords Allowed to Conduct Background Checks in Washington?

Yes, landlords in Washington are legally permitted to run background checks on prospective tenants. These checks often include credit reports, criminal history, eviction records, and other relevant data that can help landlords assess whether a person is likely to meet their obligations under a lease agreement. However, undertaking these screenings comes with specific requirements dictated by state law and federal regulations.

Key Legal Considerations for Running Background Checks in Washington

1. Compliance with the Fair Credit Reporting Act (FCRA)

Washington landlords must comply with the federal Fair Credit Reporting Act (FCRA) when obtaining consumer reports, such as credit or criminal background checks, from third-party screening companies. This means:

• Written permission: You must obtain the prospective tenant’s written consent before ordering a background or credit report.
• Disclosure: The applicant must be informed that a background check will be performed as part of the rental application process.
• Notification of adverse action: If you deny the rental application based on information obtained from the screening report, you are required to provide a pre-adverse action notice that includes a copy of the report and the contact information of the reporting agency. After taking adverse action, a final adverse action notice is also required.

2. Restrictions Under Washington’s Tenant Screening Laws

Washington has enacted several statutes to protect applicants’ access to housing and prevent discriminatory or unfair screening practices:

• Limits on fees: Landlords may charge a screening fee to cover the cost of running background checks, but the fee must be reasonable and reflect the actual cost.
• Ban on discriminatory use: Screening criteria cannot be used to discriminate against applicants based on protected classes under the Washington Law Against Discrimination, which includes race, color, national origin, sex, familial status, disability, and more.
• Consideration of criminal records: Under Washington’s Fair Chance Act (RCW 49.60.400), landlords must follow strict rules regarding criminal history information. Specifically, you cannot inquire about or use an applicant’s criminal history until after an initial screening and offer of tenancy (subject to exceptions for certain crimes). Any denial based on criminal history must be narrowly tailored and based on relevant offenses linked to the safety or property concerns.

3. Use of Credit and Financial History

Credit reports and financial histories are common components of tenant screening:

• Reasonable criteria: Criteria such as credit score thresholds or debt-to-income ratios should be reasonable and applied consistently to all applicants.
• Explanation and opportunity to contest: Applicants must be given a chance to explain or contest adverse information that may affect their application.

Best Practices for Landlords Conducting Background Checks in Washington

To maintain compliance and foster fair tenant selection, consider the following best practices:

• Clear application forms: Include a distinct section on your rental application requesting permission to conduct background checks and informing applicants about the use of screening reports.
• Use reputable screening services: Partner with licensed consumer reporting agencies that comply with the FCRA and Washington state screening laws.
• Maintain confidentiality: Protect applicants’ sensitive information and limit access to screening reports within your management team.
• Provide written notices: Issue all required disclosures and adverse action notices in writing, keeping copies for your records.
• Develop objective screening standards: Create clear, nondiscriminatory criteria for rental decisions that you apply uniformly.
• Understand updates to laws: Washington’s tenant screening regulations can evolve; regularly review legal requirements to ensure ongoing compliance.

Summary

In Washington, landlords are allowed to run background checks on prospective tenants as part of the tenant screening process. However, these checks must be conducted within the framework of federal and state regulations, including the FCRA and state tenant screening laws. Obtaining written consent, providing proper disclosures, avoiding discriminatory practices, and handling criminal history information carefully are all essential elements of lawful screening.

By adhering to these guidelines, Washington landlords can effectively assess tenant suitability while respecting applicants’ rights and maintaining legal compliance. This approach not only protects landlords’ interests but also promotes a fair and transparent rental market for all parties involved.