Selecting the right tenant is one of the most important decisions a landlord or property manager can make. A poor choice doesn’t just lead to missed rent, it can create safety issues, conflict with neighbors, property damage, and even legal problems. That’s why doing a background and credit check on every rental applicant isn’t just smart, it’s essential.
These checks are not done after someone has moved in or at random. They’re a key part of the tenant screening process, which happens before anyone is approved to rent or given the keys. This timing matters, because once someone becomes a legal tenant, reversing that decision becomes a much bigger (and more expensive) problem.
In this blog, we’ll break down what background and credit checks are, how long they typically take, what delays them, how landlords can speed up the process, and what legal rules must be followed to avoid serious consequences.
When Are Background and Credit Checks Done, And Why the Timing Matters
Background and credit checks are conducted before a lease is signed and before a person becomes a tenant. This is typically part of the formal rental application process. The purpose is to:
- Evaluate financial reliability
- Check for criminal or eviction history
- Protect existing tenants and the property
- Avoid leasing to high-risk individuals
Once the applicant passes the checks and is approved, they become a tenant when the lease is signed and possession of the unit is handed over.
Why timing matters: If you skip the checks, or delay them until after move-in, you lose your legal leverage. Evicting someone after discovering red flags post-occupancy is a costly and time-consuming process.
What Is a Credit Check, and How Long Does It Take?
A credit check looks at the applicant’s financial track record. It includes:
- Credit score
- Loan and credit card balances
- Payment history
- Public records (like bankruptcies or collections)
Timeframe: Most credit checks take just a few minutes if submitted through a professional tenant screening service or property management platform. They’re typically instant once the applicant gives consent.
What Is a Background Check, and How Long Does It Take?
A background check looks into an applicant’s criminal history, rental history, identity, and more. It can include:
- Criminal record (state, federal, or nationwide)
- Eviction history
- Sex offender registry
- Employment and identity verification
Timeframe: Typically takes 1 to 3 business days, though some elements may return sooner or take longer depending on jurisdiction or complexity.
To read more about Section 8 Background Check, do give our in-depth blog a read.
What Can Delay the Process?
Delays often come from:
- Incomplete or inaccurate application details
- Missing or delayed consent from the applicant
- Manual verifications from past employers or landlords
- Multiple aliases or former addresses
- Court record delays in certain counties or states
- International applicants (non-U.S. credit or background)
How to Avoid These Delays
- Require applicants to complete every field accurately
- Collect signed consent upfront
- Use a screening service that connects directly to national databases
- Pre-screen applicants before you start the formal process
- Verify identity with photo ID early
Best Practices to Speed Up the Process (for Landlords & Property Managers)
Want to avoid being stuck waiting on screening results? Do this:
- Use digital, automated screening tools with real-time access
- Communicate expectations clearly to applicants from the start
- Include a checklist so nothing’s missed (ID, proof of income, references)
- Have a standardized, professional application process
- Avoid paper forms, they slow everything down and are prone to errors
Legal Framework and Tenant Rights You Must Respect
Even though landlords have a legal right to screen applicants, there are strict federal and state laws protecting people’s privacy and rights.
Fair Credit Reporting Act (FCRA)
Under FCRA:
- Landlords must obtain written permission to run any checks
- If you deny the application based on report results, you must provide an “adverse action” notice explaining why
- Applicants have the right to dispute inaccurate information
Local and State Laws
Some states (e.g., California, New York) limit what you can consider, like older criminal records or eviction histories beyond a certain date.
You must also ensure:
- No discrimination (per the Fair Housing Act). To read in detail about Primary Fair Housing Laws in California, do give our in-depth blog a read.
- Secure handling of personal data
- Equal treatment of all applicants
What Happens If You Don’t Follow the Rules?
Skipping legal requirements or misusing reports can lead to:
- Lawsuits
- Civil penalties and fines
- Invalid lease agreements
- Reputational damage
Even honest mistakes can lead to real consequences if you don’t follow procedures carefully.
Common Red Flags on a Background Check
Here’s what might raise concerns during screening:
- History of non-payment or evictions
- Convictions for violent crimes or drug trafficking
- False information on the rental application
- Multiple name or SSN mismatches
- Suspicious employment or income patterns
You’re not legally required to reject someone for these, but you’d be smart to look deeper.
What If the Applicant Doesn’t Respond?
If the applicant doesn’t give consent or fails to complete the screening process, you can’t legally proceed with checks, and you don’t have to hold the unit. Set a clear deadline. If they don’t respond, move on to the next qualified applicant.
Can Bad Credit Cause a Failed Background Check?
Bad credit doesn’t automatically disqualify someone, but it’s a risk indicator. The real red flags are:
- Unpaid rent or utility accounts in collections
- Multiple defaults
- Ongoing bankruptcies
Landlords may choose to still rent apartments to tenants with low-credit with co-signers, higher deposits, or shorter lease terms, but it depends on risk tolerance.
Conclusion
Background and credit checks are critical, and they happen before anyone becomes a tenant. Done right, they take anywhere from a few minutes to a few business days, depending on accuracy, responsiveness, and the tools you use.
As a landlord or property manager, your job isn’t just to collect rent, it’s to protect your property, other tenants, and your legal standing. Cutting corners in the screening process can land you in hot water. So use smart tools, stay compliant, and treat each screening with the attention it deserves. Because the best time to spot a bad tenant… is before they move in.At Compliance Prime, we offer expert-led Fair Housing webinars to help you stay compliant, avoid legal pitfalls, and manage your properties with confidence.
