Court Record Search - reason for denying an applicant

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Court Record Search - reason for denying an applicant

Melissa Crimp
New to Real Estate · Moab, UT · Member since 2022 · 6 posts · 3 votes

Hi. We have a few investment homes in Roanoke, VA for long-term rentals. When screening potential tenants, I've learned that the Zillow application doesn't show much, if anything, and the TransUnion SmartMove isn't proving to be much better. Lucky for me, Virginia court records are my best place for searching evictions, warrant in debt, etc.

My question is - if nothing comes up on a background check, but I find court records that tell me something different, can I use those as a reason to deny? 

Also - I'm dealing with an applicant right now who appears to live with a family member (same last name, listed as the landlord on her application) who was just served an eviction notice on September 14. I won't be renting to her, but she keeps checking in about her application, and I'm not sure how to deny her and don't want to say that I've looked up all these records. 


Any advice is appreciated! 

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @Melissa Crimp:

It helps if you learn to run it like a business instead of letting your emotions get in the way. You don't have to fret over hurting people's feelings. Tell them the truth. Keep it short and professional. Then move on.

Go to Google and search for "adverse action notice" and you'll find plenty of examples like the one below. Create something similar that works for you. Fill in the blanks, check a box or two, and send it off.

TransUnion is one of the best screenings out there, but most criminal records and evictions are not public record and won't show on a background check. If you have a good screening process that checks all aspects of their background, you'll weed them out through other means. We process nearly 1,000 applicants per year and rarely have criminal problems.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Melissa Crimp:

    It helps if you learn to run it like a business instead of letting your emotions get in the way. You don't have to fret over hurting people's feelings. Tell them the truth. Keep it short and professional. Then move on.

    Go to Google and search for "adverse action notice" and you'll find plenty of examples like the one below. Create something similar that works for you. Fill in the blanks, check a box or two, and send it off.

    TransUnion is one of the best screenings out there, but most criminal records and evictions are not public record and won't show on a background check. If you have a good screening process that checks all aspects of their background, you'll weed them out through other means. We process nearly 1,000 applicants per year and rarely have criminal problems.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    2Reply
  • Aaron HowellBusiness Member
    Real Estate Agent · Crozet, VA · Member since 2014 · 436 posts · 223 votes
    2y

    Agree with @Nathan Gesner.  Run it like a business.  Once someone gets the keys and moves in it is a different ballgame and getting them out is tough once they're in there.  

    I recently had a strong applicant have court "unlawful detainer" records show up in their Zillow Background.  Findigs.com also can run an AI based check.

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  • Melissa Crimp
    OP
    New to Real Estate · Moab, UT · Member since 2022 · 6 posts · 3 votes
    2y

    Thank you both for your input! 

    0Reply
  • Christopher Robert Noland
    Investor · Seattle, WA · Member since 2023 · 87 posts · 44 votes
    2y

    When it comes to tenant screening, it's important to balance your right as a landlord to protect your property with compliance with Fair Housing laws and local regulations. Here's how to approach this situation:

    1. Denying Based on Court Records

    Yes, you can generally deny an applicant based on publicly available court records, such as evictions, judgments, or warrants in debt, as long as the information is accurate and you apply this standard consistently to all applicants. If you find that the court records contradict the background check (e.g., an eviction that isn’t reflected), you can use that information as part of your screening process. However, ensure that your decision does not violate any anti-discrimination laws or local ordinances.

    Make sure that:

    • The records are accurate and pertain to the applicant.
    • You have established written criteria for tenant screening, which should include reasons for denial such as prior evictions, judgments, or debt-related issues. Applying the same criteria consistently helps protect you legally.

    2. How to Deny the Applicant Tactfully

    For the applicant whose family member was recently served with an eviction notice, it's wise to be cautious about how you communicate the denial. You don't want to disclose that you've conducted an extensive personal investigation into her situation, especially if you’ve gathered information not directly from the application process. Instead, focus on the criteria you’ve set for tenant approval.

    Here’s a professional and neutral way to phrase your denial:

    • Keep it General: "After reviewing your application, we have decided to move forward with other applicants who more closely meet our rental criteria."
    • Be Polite and Final: "Thank you for your interest in the property. We wish you the best of luck in your search for housing."

    This approach avoids any specific mention of what you found and keeps the denial grounded in general terms, which helps minimize the chance of confrontation or claims of discrimination.

    3. Legal Considerations

    • Fair Housing Laws: Ensure your reasons for denial comply with the Fair Housing Act, which prohibits discrimination based on race, color, religion, sex, disability, familial status, or national origin. Local laws may also include protections based on other factors such as source of income or eviction history.
    • Disclosure Requirements: If you are using third-party screening services like SmartMove or another credit reporting agency, you must provide the applicant with an "adverse action" notice if you deny them based on the results. In this case, since you're denying based on your own research (court records), this may not apply, but it’s good to stay familiar with these rules.

    4. Final Thoughts

    While you have the right to deny applicants based on relevant court records, always do so in a consistent and fair manner. By setting clear screening criteria and using neutral language when communicating with applicants, you reduce the risk of legal issues and maintain professionalism.

    1Reply
  • Melissa Crimp
    OP
    New to Real Estate · Moab, UT · Member since 2022 · 6 posts · 3 votes
    1y

    @Christopher Robert Noland Thank you so much for this!

    0Reply
  • Christopher Robert Noland
    Investor · Seattle, WA · Member since 2023 · 87 posts · 44 votes
    1y
    Quote from @Melissa Crimp:

    @Christopher Robert Noland Thank you so much for this!

    You are most certainly welcome !
    0Reply
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