Performing background checks as an employer or landlord is vital to keeping your business, property, customers or employees safe. Unfortunately, the time and cost of a background check may lead to opting out or choosing to do research online in lieu of working with a professional background screening company. This can be a problem if the results found online aren't accurate or if the new hire or tenant isn't screened thoroughly. Denying employment or housing could cause the applicant to litigate because they weren't given a fair chance. Instead of putting yourself or your business at risk of EEOC or FCRA noncompliance, we have some practical ways to help.

Here are 3 simple ways to lower your company's turnaround times and screening costs. 

Employers screening potential applicants face more regulations such as Ban the Box and other "fair chance" laws to decrease discrimination in hiring. Landlords are also facing more legislation for the same reason. Within the past several months, there have been new laws for landlords and property owners looking to run background checks on their tenants. 

Read more to learn about new laws impacting landlords and tenant screening.

Over the past decade, the consumer reporting and background screening industry has seen significant growth. With growth typically comes competition, and with competition usually comes aggressive pricing. The cost of a criminal background check can vary by search type and by screening company (aka Consumer Reporting Agency - CRA). This post is to provide an estimate of what employers and landlords can expect to pay when conducting employment and tenant screening.   

When an employer or landlord runs a credit check on a future tenant or employee, they expect accurate information. Consumers also want to know that the information is correct and up-to-date. Adverse information on a background check, especially a credit report, can affect employment, housing, buying a car or obtaining a loan.  It's imperative that the information be true, verified and safe.

When running a credit background check on an applicant, can you trust what you see?

Keeping individual, multi-family or student rental properties safe, clean and rentable is just as important as having the rent paid on time. Landlords who have not screened their tenants may be curious about background checks, especially if rent isn't being paid or if suspicious activity arises. Property owners who are looking for highly qualified individuals may also have questions about screening future tenants. There are lots of different ways to look into the past of tenants, including a "cheap internet search" but they could cause more trouble than they're worth. As a landlord or property owner, it's best to obtain background checks legally.

So is it legal for a landlord run a background check without permission?

To remain FCRA compliant, consider the following timing for sending adverse action notices.

Since the beginning of the VeriFirst blog, the goal has been to provide an educational resource and assistance to employers and property managers. Compliance is important to those who read here, as well as an awareness of the latest employment and housing laws across the nation. VeriFirst's FCRA certified staff works closely with our clients to help with hiring the right employee or placing the perfect tenant.

Bookmark this blog post as a go-to compliance guide with background check forms and templates for employment screening and tenant screening.

As a property owner or landlord, your goal is to find a tenant who will not only pay on time but also care for your property. VeriFirst's goal, as a background check company, is to help you find the right tenant and also encourage compliance with federal regulations such as FCRA and Fair Housing laws. To stay compliant, this means honoring consumer rights but you also need to protect your business. 

When is the last time you took the time to review your tenant screening criteria?

Employers and property managers rely on background check companies to provide current and accurate information before making the decision to hire or rent. A common misconception is that there is one large database that all consumer reporting agencies rely on for their data. In fact, there are hundreds of databases, records, and other sources that still could have erroneous data on the individual being screened. For this reason alone, screening companies must verify and double-verify data and also rely on the adverse action/dispute procedures set out in the Fair Credit Reporting Act (FCRA).

With a possibility for errors, how do background check companies get their information?

As with any industry, terminology matters. Background check jargon can be challenging but it is helpful to have a basic understanding of some terms. A professional background screening company will also guide hiring managers, property managers and non-profit organizations through the process, pointing out ways to save both time and money. Background checks prior to employment (or during), before renting to a tenant, or hiring a volunteer is important to hiring and placing quality individuals but efficiency counts too.

Manage risk, save time and money with this list of jargon, terms, and definitions behind background checks.