Topic: Does your company have a practice of running credit/background checks for renewals?

Does your company have a practice of running credit/background checks on current residents as a part of the renewal process?

Current? Why?

Michelle Leigh idk but someone suggested this as a practice and I didn’t think it was a thing. Glad to hear it isn’t a thing for you.

You have something better and more accurate than their credit report . You have their actual payment record to you. If someone is paying their rent to us but is late on their car and credit cards , well, I’m fine with that. Did you misunderstand someone and they mean they are running a criminal check at renewal ?

No, but we do rerun if they transfer and sometimes you find out things that have occurred during their current term. Not an easy conversation.

Companies might rerun background typically because of a Crime Free program to identify if anyone has been convicted of new charges that wouldn’t pass the original move in policy.

No I think you can look at their late/NSF history and determine enough about how they handle their finances and if you want to renew

Typically only done for criminal for renewal at housing authorities because of the strict felony guidelines.

I worked for a company that did this and truly felt there was a lot of redundancy in the process. I could never get to the bottom of their reasoning for it. We’re they planning to non-renew? Would they evict? Was never clear and seemed like such a waste of $.

That seems like a really unnecessary expense

No

No

We ran criminal only at renewal when we took over a new property.

I find it as problematic as it impacts their credit.

Tamara Sanchez this. I’d be very upset and would absolutely move over it. I worked hard on my credit and won’t let it go to crap for anything.

Sherie like how would they ever try to get another home or something. I wonder if it’s even legal?

Tamara Sanchez FCRA allows for running credit and background checks upon renewal. But, I've never known it to be a common practice in over 40 years in the business. That's why I was asking if others are now doing it and under what circumstances. Answers were seem to indicate it is not common for renewals, as I expected - except where there may be some unique conditions like a crime-free housing commitment or special income requirements.

No

We don’t re-screen at renewal. However, we do when a resident wants to transfer. Full credit and criminal. I worked for a company that did and I never understood why and leadership never gave direction on what to do in the event screening came back denied. It never happened, but the policy was also very short lived.

No

I have done it on properties that are new purchases after looking through files if needed and only crims never credit. These properties also were problematic.

No.

No. Just move in. Unless transfer to another unit.

We've done background checks but not credit?

No.

Yes. Background checks on any occupant that was not checked at time of move in or a long term resident who has not been verified in some time. We do not run or re run credit.