What are the best practices for managing tenants with a criminal history?

1 Know the law

The first and most important step is to familiarize yourself with the federal, state, and local laws that regulate tenant screening and discrimination. The Fair Housing Act prohibits landlords from denying housing to anyone based on race, color, religion, national origin, sex, disability, or familial status. However, it does not explicitly protect people with criminal records. Some states and cities have passed laws that limit the use of criminal background checks or ban certain types of convictions from being considered. You should consult with a legal expert or a reputable screening service to ensure that you follow the law and avoid costly lawsuits.

3 Be transparent and respectful

The third step is to be transparent and respectful when dealing with applicants with a criminal history. You should inform them upfront about your screening policy and what information you will require from them. You should also explain the reasons for any adverse action, such as denial or conditional approval, and provide them with a copy of their background report and their rights to dispute it. You should never make assumptions or judgments based on stereotypes or biases, and treat all applicants with dignity and professionalism.

4 Consider individual circumstances

The fourth step is to consider individual circumstances and make case-by-case decisions when screening tenants with a criminal history. You should not automatically reject anyone based on a criminal record, but rather evaluate their overall qualifications and suitability for your property. You should also consider any mitigating factors, such as evidence of rehabilitation, employment, education, community involvement, or personal references. You may also request additional information or documentation from the applicant, such as a letter of explanation, a parole or probation officer's report, or a character reference letter.

5 Mitigate your risks

The final step is to mitigate your risks and protect your interests when managing tenants with a criminal history. You should conduct regular inspections, maintain good communication, and enforce your lease terms and rules. You should also obtain adequate insurance coverage, require a reasonable security deposit, and collect rent on time. You should also document everything and keep records of any issues or incidents that may arise. If you encounter any problems or violations, you should act promptly and legally to resolve them.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?