Are landlords allowed to run background checks on tenants?

Tenant Screening and Background Checks for Landlords in Wisconsin

When managing rental properties in Wisconsin, landlords have a legal right to conduct tenant screening, including background checks. Proper tenant screening helps landlords make informed decisions, minimize risks, and maintain a safe and stable rental environment. However, Wisconsin state laws impose specific requirements and restrictions that landlords must follow when running background checks on prospective tenants.

Legal Authority to Run Background Checks in Wisconsin

In Wisconsin, landlords are generally permitted to run background checks on prospective tenants as part of their tenant screening process. Background checks typically include:

• Criminal history reports
• Credit history reports
• Rental history verification
• Employment verification

These checks can help landlords evaluate whether an applicant is likely to pay rent on time, adhere to lease terms, and maintain the property responsibly.

Compliance with Federal and State Laws

Landlords in Wisconsin must conduct background checks in compliance with both federal and state laws. Key rules to keep in mind include:

Fair Credit Reporting Act (FCRA) Compliance

• Written consent: Before obtaining a tenant’s background or credit report, landlords must get their written permission.
• Disclosure and adverse action notices: If a landlord decides to reject an applicant based on information contained in a consumer report, they must provide the tenant with a pre-adverse action notice (including a copy of the report and a summary of rights), and after the decision, an adverse action notice.

Wisconsin’s Fair Housing Laws

• Wisconsin’s fair housing laws prohibit discrimination based on race, color, national origin, sex, disability, religion, age, marital status, sexual orientation, gender identity, and other protected classes.
• Tenant screenings must be applied consistently to all applicants to avoid discriminatory practices.
• Background checks should not be used as a tool to unfairly exclude applicants from protected classes.

Wisconsin Statutes on Criminal Records Use

• Wisconsin law allows landlords to consider an applicant’s criminal history but restricts the use of arrests that did not lead to conviction.
• Landlords may consider convictions, but should evaluate the nature and timing of offenses relative to the rental sought.
• Blanket bans on all criminal records without individualized assessment may be challenged as violating fair housing principles or state law.

Practical Steps for Landlords Running Background Checks

To ensure compliance and effective tenant screening, Wisconsin landlords should:

1. Obtain Written Authorization

• Use a clear, standalone consent form or include authorization language in the rental application.
• Inform applicants of which reports will be obtained and how the information will be used.

2. Work with Reputable Screening Services

• Select reputable background screening companies that comply with FCRA and provide accurate, timely reports.
• Verify that the screening company is licensed and follows Wisconsin-specific mandates.

3. Evaluate Criminal Records Carefully

• Consider how the offense relates to tenancy, e.g., offenses involving violence, property damage, or drug-related crimes may be more relevant than minor offenses.
• Assess the recency of convictions; older convictions may have less bearing on current risk.

4. Follow Fair Housing Best Practices

• Apply screening criteria equally to all applicants.
• Avoid policies that disproportionately exclude protected classes unless legally justifiable by business necessity.

5. Provide Required Notices if Denying Tenancy

• If an adverse action is based on a background or credit report, provide the required pre-adverse and adverse action notices timely.

6. Keep Records Secure and Confidential

• Store reports and sensitive applicant information securely to protect privacy.
• Dispose of screening reports properly when no longer needed.

Summary

In Wisconsin, landlords are permitted to run background checks on prospective tenants as part of tenant screening but must do so in compliance with state and federal law. This includes obtaining written tenant consent, following FCRA requirements, avoiding discriminatory practices consistent with Wisconsin’s fair housing laws, and carefully evaluating criminal histories.

By understanding and adhering to these guidelines, Wisconsin landlords can responsibly use background checks to make informed leasing decisions while protecting the rights of applicants and minimizing legal risks.