Simple, Effective Screening for Better Tenants in Connecticut

Connecticut Background Checks

Background checks are a vital part of thorough tenant screening. Every landlord needs to know the history of every applicant. Background checks give you a good idea of whether someone makes payment on time, stays out of massive debt, has a criminal past, and a lot more.

Background checks reduce the chances of tenant turnover, protect you from liability, and help you and other tenants remain safe.

In this article, we’ll help you understand what background checks consist of, how to ensure you get the information you need, and what you need to know about your state’s rules regarding them. 

What are Background Checks?

1. Credit Report: Aside from a lease agreement, a tenant credit might be the most crucial document for a landlord to understand. This document is one of the best ways to determine whether someone will pay on time and in full. Here are the main components of a credit report:
   • Basic information like former names/aliases, current and previous addresses, etc.
   • Fraud indicators like invalid phone numbers or phony social security numbers
   • Tradeline summaries that give a snapshot of an applicant’s active accounts
   • Inquiries that show a list of companies who viewed an applicant’s credit file over the last two years
   • Credit/resident score
   • Winter weather damage

   The credit score and the resident score are key. A credit score is a numerical value anywhere from 300-850 that helps illuminate an applicant’s creditworthiness. If an applicant has a score of 500 or less, proceed with caution. Most reliable tenants will ave a score above 560. A resident score is similar to a credit score, but more directly reflects someone’s reliability as a tenant. Both scores are proprietary, so the exact formulas aren’t available to the public. That said, resident scores typically include a recommendation on whether to accept an applicant or not (this shouldn’t be treated as gospel obviously, but it’s helpful).

2. Criminal History: Wide-sweeping national databases, more narrow specific state databases, and granular county records are the main elements of most criminal history reports.
3. Income Verification: There are several ways to verify income. Let’s look at some of the most common here: whether someone will pay on time and in full. Here are the main components of a credit report:
   • Pay Stubs: Paychecks are the most common way to verify income. Anyone with full-time or part-time employment can make copies of paychecks and send them to you.
   • Yearly Tax Returns: A federal tax return is another option to obtain proof of income. This is often an excellent option because it’s an official legal document, so it’s difficult to fake.
   • W-2 Tax Form: These forms show employer’s withholding payroll taxes from workers’ earnings. This is another good option because it’s a document directly from an employer.
   • Bank Statements: This method is especially effective for self-employed applicants because they won’t have regular pay stubs like those who work for traditional businesses.

   Important Note: Innago’s new income verification feature, which you can learn more about here, makes it easier than ever to ensure your tenants have the necessary funds to pay you

4. Eviction History: Except in cases where overdue rent went to collections or a previous landlord reports late payments, credit reports don’t usually show evictions.  Federal law typically prevents evictions from being shown on a background check after seven years, but this figure varies by state
   If you cannot see an applicant’s eviction history on a credit report or obtain the information by contacting their previous landlords, then you may pull an eviction report. However, certain states have restrictions on different kinds of reports (we’ll address those if they’re relevant later in this piece).
   Eviction history matters because the cost of an eviction for landlords is often between $4,000 and $7,000 or more. That means that if a tenant was evicted, they likely left their previous landlord with no other choice.
5. Application: A rental application is a preliminary form used to obtain basic information about an applicant and their eligibility. Most applications ask for this information:
   • Landlord References: Contact previous landlords and get their take on applicants. This is a critical step that some landlords skip over. Make sure you’re not one of those landlords.
   • Employment History: You want to know current and former employers and get consent to contact them.
   • Written Permission to Run a Credit Check
   • Legal Disclosures: Here’s a helpful article on what disclosures to include.
   • Additional Inquiries: Be careful here. Make sure you don’t ask questions that violate laws. Only ask about things like pets or smoking. And make sure you’re consistent.

Why Do You Need to Run Background Checks?

Background checks in general are utilized by a variety of groups: landlords, employers, lenders, licensing agencies, government agencies, etc. Tenant screening or employment background checks are run to ensure that a candidate for a job, license, property, or loan is properly qualified and does not have a history of behavior that would interfere with their ability to perform the duties required under contract. Background checks minimize legal liability, protect companies’ assets and current employees, and are sometimes required by clients.

When it comes to landlords, background checks are needed to: 

1. • Protect the safety and property of other tenants
   • Reduce tenant turnover
   • Minimize legal liability
   • Increase the likelihood of on-time rental payments
   • Avoid conflict and crime in the rental community
   • Narrow down applicants for a high-demand property
   • Prevent expensive and lengthy eviction processes

Connecticut Background Checks

Landlords in the “Constitution State” should run background checks on potential tenants as a precaution and general policy. Here are three reasons to run background checks in Connecticut: 

1. Identify rental application fraud 

Rental application fraud, which occurs when a tenant lies on their application or submits falsified pay stubs, bank statements, etc., is on the rise across the country. According to recent data from Snappt, 85% of landlords and property managers report having experienced rental fraud in 2020. If a tenant lies on their rental application or submits fraudulent documents in Connecticut, a credit check can uncover the truth before you allow the tenant to occupy your property. 

1. Avoid future evictions 

Running a tenant’s eviction history in Connecticut can also help you avoid evictions for nonpayment or criminal activity. Last year, Connecticut saw 20,625 eviction filings, which covers about 3% of all renting households in the state. Hartford, CT in particular had high eviction activity in 2023, according to the Eviction Lab. 

Eviction in Connecticut is a long and expensive process, taking anywhere from four weeks to two months. Because tenants with a previous eviction are more likely to be evicted again, running an eviction history is essential component of a Connecticut background check and can help you avoid high turnover. 

1. Learn about the existence or nature of illegal activity 

It’s also important to run criminal background checks in Connecticut. Connecticut has a small criminal reentry population compared to other states, but it’s still important to be aware of convictions that could impact a tenant’s ability to adhere to lease terms. While landlords cannot have a blanket policy for denying convicts, certain crimes (like sex offenses) restrict convicts from certain housing options and are valid reasons to deny a tenant. 

What do Background Checks in Connecticut Cost?

Background checks are relatively affordable across the U.S., but their costs vary depending on the area searched and the level of information requested. Searching national records typically costs between $13-60 per person, while searching an individual state’s records costs between $10 and $25 per person. The Connecticut State Police Bureau of Identification offers criminal background checks at a slightly higher rate, $75 per name ran. County records, which tend to be more accurate and up to date, cost $16-$25 per person per county checked. You can learn more about each of these specific types of background checks in our article on the topic. 

Which Laws Apply to Connecticut Background Checks?

A Connecticut background check cannot be used by anyone for any purpose. Due to fair housing and employment protections, the use of credit reports and criminal background checks in Connecticut is restricted by several laws. 

Connecticut General Statutes: Discrimination on Basis of Erased Criminal Record  

Connecticut’s state employment laws (CS § 31-51i) lay out several regulations for credit and criminal histories. The following regulations apply to all Connecticut employers during employment background checks: 

• Consumer reporting agencies (CRAs) must send written notices and copies of consumer reports to consumers if employers request one that contains criminal record information. 
• Employers cannot ask about applicants’ prior arrests, criminal charges, or convictions on initial job applications unless they’re required to do so by law.  

• If there is a mention of criminal history record, there must be a conspicuous notice explaining that the applicant is not required to disclose their erased criminal record. 
• Employers cannot reject or terminate an employee solely because they have erased criminal history record information or a prior conviction for which they received a pardon or certificate of rehabilitation. 
• Employers must generally provide written explanation if a conviction is used as the basis for denial. 

Public Act No. 11-223 

According to Public Act No. 11-223, employers cannot use credit reports during hiring, with three exceptions: 

1. The employer is a bank or financial institution. 

1. The employer reasonably believes the applicant is participating in unlawful behavior. 

1. The credit report is substantially related to the position or job responsibilities. 

Know Connecticut’s Fair Housing and Employment Laws 

Before you run a background check in Connecticut, be sure you’re aware of the state and federal laws that apply to their use. Keep in mind that while all Connecticut counties are subject to state-wide laws and executive orders, some counties may enforce additional regulations which aren’t listed here. A background check Connecticut considers compliant must adhere to federal and state laws in addition to local ordinances. Additionally, you must get written consent from an applicant before running a background check. Be sure you’re educated on the law in your region and adhere to the HUD’s recommendations if criminal background checks are part of your tenant screening process. 

How far back do Background Checks in Connecticut go?

When you use consumer reports to make tenant decisions, you must comply with the Fair Credit Reporting Act (FCRA). 

Section § 605 – 15 U.S.C. § 1681c of The Fair Credit Reporting Act (FCRA) applies in all 50 states and mandates a seven-year restriction on reporting certain background check information like civil suits, civil judgments, and arrest records (except in certain cases where an employer is hiring for a job with a salary more than $75,000). The FCRA doesn’t have similar timeline restrictions on criminal convictions, but some states restrict reporting conviction information at the state or local level. There are no notable state laws to this nature in Connecticut, but individual cities or counties may have additional restrictions. 

How to Run Background Checks in Connecticut?

When you need to conduct background checks in Connecticut, most people either conduct a DIY background check or use a third-party provider. If you run a DIY background check, your best bet is probably to request criminal history from the Connecticut State Police Bureau of Identification, contact an applicant’s former landlords and employers, obtain a credit report (Equifax, Experian, and TransUnion are the three major credit reporting agencies that compile credit information), verify income, look at the sex offender registry, and ensure you have all the information you need to conduct thorough tenant screening. DIY checks can be risky, though, because it’s easier to run afoul or relevant laws inadvertently (unless you’re very well-versed in the law).  

The better option for running a background check is to partner with a third-party provider, who often bundle credit, resident, criminal, and eviction histories together as a package. You can select the kind of reporting you need and let the third-party take care of the collection process. 

Background Checks with Innago

At Innago, we’ve partnered with TransUnion SmartMove to help you review background check information and identify high quality applicants. Running a background check through Innago allows you to quickly and easily identify the best applicants and ensure their application information is accurate. Likewise, Innago’s income verification feature helps our users verify reported income by connecting to their bank account, payroll provider, or by uploading documents. 

Disclaimer: This article is for educational purposes only and does not constitute legal advice. We recommend you consult with professional counsel if you have legal questions regarding your specific practices and compliance with relevant laws.